PRICES GAIN SOME GROUND
COTTON prices recovered rallying over 200 points before settling at 90.91 up 189 in May and at 92.28 up 183 in July.
Traders pointed to the 150 out of the money May 90 calls that someone exercised after Friday’s close for helping to get Friday’s gains started.
In addition to the option impact, traders also suggested the market may have been supported due to a bit of a correction as the bulk of the weight of the index roll passed and prices may have also been supported by a rise across most markets.
Shippers continue to report a slight increase in inquiries after last week’s lows with demand finding its way toward some aggressively priced non US offers.
Meanwhile, Friday’s weekly cert stock report showed the cert stock increased by 9458 bales to 274,856 bales.
Cargill controlled warehouses continue to hold the bulk (82%) of the cert stock bales.
There are just six trading days before First Notice Day for the May on April 24.
Meanwhile, continued wet weather across the US Delta is hampering final corn planting which may result more cotton acreage.
Against this, West Texas continues dry.
The latest Texas Crop Progress report, 11% of Texas acreage has been planted in line with the five year average of 12%.
The AUD is back above 94 US¢, after a boost from better-than-expected US retail sales figures.
At 7am AEST, the AUD was trading at 94.23 US¢, up from 93.86¢ on Monday.
US retail spending rose 1.1% in March, the largest monthly gain in 18 months.
BK Asset Management managing director Kathy Lien said the USD had a weak reaction to the retail data.
“After a one-day respite, the AUD resumed its rise against all major currencies,” she said.
“There was no Australian economic data released (on Monday) but the lack of upside momentum in the USD helped to fuel the rally,” she said.