Cotton up 1pc on rallying grains, rainy weather

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Cotton

Washington: Cotton prices rose for a second straight session on Thursday, following a rise in the grains market, while rain in the cotton-planting belt continued to support the natural fiber.
* The most active cotton contract on ICE Futures US, the third-month December contract, rose 0.62 cent, or 0.94%, at 66.50 cents per lb.
* It traded within a range of 65.47 and 66.75 cents a lb.
* “There is an overall optimism in commodities. Corn, soy and wheat are up and that is helping cotton,” said Sid Love, commodity trading adviser at Kansas-based Sid Love Consulting.
* Chicago corn, soybeans and wheat extended a rally on Thursday as forecasts of more rain in the US Midwest threatened to worsen planting delays that have put a question mark over this year’s harvest.
* “Weather is not perfect in the cotton belt either, clearly there are some issues with the crop down in Texas,” Love added.
* Heavy rains have plagued US farmers in cotton-producing states during the past few weeks.
* The US Department of Agriculture (USDA) reported net sales of 75,100 running bales(RB) for the marketing year 2018/2019 were down 59% from the previous week while exports of 360,400 RB were up 17%.
* USDA is expected to report its estimates for all cotton planted acres in the United States on June 28.
* Meanwhile, the tit-for-tat import tariffs between Beijing and Washington continue to loom over consumer sentiment and investors remain hopeful of a trade agreement between the world’s two largest economies.
* The China Cotton Association will submit an application for a waiver on import duties on uncombed cotton from the United States.
* Total futures market volume fell by 8,124 to 46,235 lots. Data showed total open interest fell 351 to 206,044 contracts in the previous session.
* Certificated cotton stocks <CERT-COT-STX> deliverable as of June 12 totaled 88,340 480-lb bales, up from 88,260 in the previous session.