PRICES GAIN SOME GROUND

Central and North Burnett Times - - COMMODITIES -

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.

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