ICE futures on firm ground

The market opened at around unchanged to slightly higher today and traded in a narrow price range for most of the early hours. At around 0800 GMT, buying increased, taking the December ’20 delivery higher. Lack of pressure allowed the most actively traded contract to rapidly gain ground. Light selling briefly interrupted the upward movement, but front months quickly found support. The December ’20 delivery reached an intraday high of 65.25 cents/lb at around 1430 GMT, and the March ’21 contract followed, hitting 66.22 cts.

Unseasonably cold weather persists in West Texas today, where daytime highs are projected in the 50°s (F), which will be around 30° below normal for this time of year. Producers are concerned that the cold, wet weather will adversely affect quality and yield. Open, warmer conditions are urgently needed to improve growing conditions.

Traders are awaiting the USDA’s supply and demand report, which is scheduled for release at 1200 EST tomorrow. The US Export Sales report is delayed until tomorrow, owing to a national holiday earlier this week.

Total open interest dropped to 216,692 contracts, down 522. December ’20 interest decreased by 838 contracts to 122,642, and May ’21 declined by 509 to 12,424 contracts, while March ’21 interest increased by 836 to 53,312 contracts. First Notice Day for the October ’20 delivery is September 24, and open interest amounted to 121 contracts as of September 9, down 4.

Certificated stocks were unchanged at 5,913 bales. No bales were awaiting review, and zero bales were in both CCC loan and cert stock as of September 9.

Front months were trading as follows at 1506 GMT:

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