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ECOM daily cotton market recap - Jan 16, 2007
17 Jan '07
2 min read
After a long weekend, and following on from Friday's frenetic trading session, it was with some interest that traders approached this morning's opening. With an increase in fund interest again noticeably present in follow through from Friday, the market was initially called to open 50 higher in the March.
Following an actual 30 higher opening in the March, the May and July followed through unchanged, as commercial selling was notable early on. Prices were soon under pressure, with the grain markets backing off today, well off early morning highs and removing a hedge fund presence early on. Overseas markets entered the fray at the day's lows around 5430 in March and 55.10 in May to buoy prices over the remainder of the session.
In particular there was a lot of interest in buying the May, with the March / May spread as a result widening out throughout the session under reasonable volume. This spread moved as wide as 100 May over which is vastly changed from where it traded near 50 last week.
Later in the session there was fund buying on the close, both out of traditional funds as well as some index buying. Prices closed with a positive slant, led by the back months. Estimated volume today was decent at a touch under 20,000 lots.
The weekly spec hedge report has been delayed until tomorrow morning, and we can envisage that following Friday's fireworks that we see a slight increase in the spec long position, likely towards 6% or so from last weeks3.9% long.
Following an actual 30 higher opening in the March, the May and July followed through unchanged, as commercial selling was notable early on. Prices were soon under pressure, with the grain markets backing off today, well off early morning highs and removing a hedge fund presence early on. Overseas markets entered the fray at the day's lows around 5430 in March and 55.10 in May to buoy prices over the remainder of the session.
In particular there was a lot of interest in buying the May, with the March / May spread as a result widening out throughout the session under reasonable volume. This spread moved as wide as 100 May over which is vastly changed from where it traded near 50 last week.
Later in the session there was fund buying on the close, both out of traditional funds as well as some index buying. Prices closed with a positive slant, led by the back months. Estimated volume today was decent at a touch under 20,000 lots.
The weekly spec hedge report has been delayed until tomorrow morning, and we can envisage that following Friday's fireworks that we see a slight increase in the spec long position, likely towards 6% or so from last weeks3.9% long.
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