U.S. weekly upland export sales surged to the largest since June 2012. All-cotton export commitments have reached 57% of the USDA forecast and shipments about 19%.
Cotton futures settled higher Friday as unknowns about a reported looming resumption of sales from ChinaΆs huge reserve stocks buffered enthusiasm from robust U.S. weekly export sales.
December closed up 60 points to 77.12 cents, trading within an 88-point span from 76.52 to 77.40 cents, and March settled up 74 points to 78.20 cents, trading within a 96-point span from 77.50 to 78.46 cents.
Both contracts remained within previous-session trading ranges. For the week, December gained 24 points and March lost 44 points.
Volume slowed to an estimated 20,400 lots from 38,452 lots the previous session when spreads accounted for 23,710 lots or 62% and EFP for 538 lots. Options volume totaled 1,653 calls and 1,958 puts.
Net U.S. all-cotton export sales for shipment this season of a whopping 505,200 running bales during the week ended Nov. 7 boosted 2013-14 commitments to 5.784 million RB.
Upland net sales of 472,700 running bales were the largest since the week ended June 7, 2012, not counting the 612,300 bales lumped together in a single report for the three-week period ended Oct. 24 following the government shutdown.
Commitments have reached about 57% of the USDA forecast, compared with 54% of final shipments at the corresponding point last season. The gap behind year-ago commitments narrowed by 94,200 bales to 984,800 or to about 15%.
The USDA projection is for U.S. exports to fall 20% from those of 2012-13 to the smallest since 2000-01, constrained by smaller exportable supplies and stiffer competition, especially from India.
As a share of global cotton trade, U.S. exports still are projected at 27%, equal to the average of the previous two seasons.
Slow all-cotton shipments of 77,700 running bales brought exports for the season to 1.934 million RB, about 19% of the USDA estimate. A year ago, shipments were 17% of final exports. Shipments trailed year-ago exports by 215,800 bales or about 10%.
To reach the USDA forecast, shipments need to average roughly 220,400 running bales a week and sales approximately 116,300 RB.
Futures open interest fell 3,696 lots Thursday to 169,752, with DecemberΆs down 7,681 lots to 22,552 and MarchΆs up 3,502 lots to 109,687. Four trading sessions now remain before first notice day for December deliveries.
Certificated stocks grew 691 bales to 193,027 on 4,123 newly certified bales and decertification of 3,432 bales. Awaiting review were 52,932 bales, including 13,152 bales at Galveston, 2,704 bales at Greenville and 37,076 bales at Memphis.
World prices as measured by the Cotlook A Index fell 100 points Friday morning to 83.90 cents. The premium to ThursdayΆs futures settlements widened 45 points to 7.38 cents over December and 13 points to 6.44 cents over March. For the week, the index dropped 115 points.
