Cotton futures were called to open around 10 higher this morning, as traces of trade bids were found around the ring. March did open exactly 10 higher, however it was a fairly inconsequential opening, as the market again chose to settle into a tight range.
March found commercial resistance around the 53.60 level, and with a distinct absence of fund interest this week, it was left to the commercials and the locals to shape what became a very narrow, low volume day once again.
Traders varied from apathetic to unimpressed with the US export figures this morning, whilst some merchants in the US are beginning to strain at the inability to price equities out of the loan at current differences.
Yesterday's December notices saw a further 318 lots issued from Fimat, with a variety of stoppers. It seems indeed that the December cert stocks may well be required to be used against current cash sales, what with the slowness in getting loan cotton out.
Later in the session today some weakness was spotted, with all contracts closing at the daily lows, albeit within another tight session of 55 point range in the march. Estimated volume was again light at 6,000 lots.
This morning's US export sales and exports report uncovered a very slow week of activity last week, with just 162,100 bales ( 136 upland and 26 pima ).
China returned as the largest buyer for the week with 62,000 combined bales. Shipments were also fairly benign with 153,200 bales.
marketing@alchempro.com
