U.S. export commitments reach about 94% of the USDA forecast for 2012-13. Shipments are 1.258 million running bales ahead of exports a year ago.
A jump in U.S. weekly jobless claims to the most since Nov. 24 contributed to closing losses in brisk trading in cotton futures Thursday.
Spot May settled off 89 points to 88.33 cents, around the lower third of its 155-point range from up 14 points at 89.36 cents to 87.81 cents. It closed below WednesdayΆs low. July dropped 71 points to 89.97 cents and December dipped a modest 30 points to 87.94 cents.
A Labor Department report showing jobless claims climbed 28,000 to 385,000 during the week ended March 30, well above expectations, raised concerns that slower U.S. growth may weaken demand for cotton goods.
Dollar index futures fell from strong earlier gains to trade lower against a basket of major currencies about the time cotton closed. The gains were after the Bank of Japan enacted unprecedented monetary easing to fight nearly two decades of stagnation in the Japanese economy.
Volume quickened to an estimated 43,600 lots from 29,291 lots the previous session when spreads totaled 13,176 lots or 45%, block trades 2,000 lots, EFS 1,000 lots and EFP 70 lots. Options volume totaled 10,160 calls and 2,699 puts.
Net U.S. all-cotton export sales during the week ended March 28 of 168,100 running bales, up from the previous weekΆs 155,600 bales, boosted 2012-13 commitments to 11.629 million. This is 94% of the USDA forecast and leaves sales of around 43,500 RB a week needed to match the estimate.
Destination buyers of upland sales of 148,300 bales, up from 143,000 the week before, included Turkey, 38,900 bales; China, 14,100; Brazil, 13,600; Thailand, 13,100; and Vietnam, 12,900.
All-cotton shipments rose to 384,100 bales from 360,500 bales and brought exports for the season to 8.239 million RB. This is 67% of the USDA projection, compared with 61% of final exports at the corresponding point last season.
Upland shipments rose to 361,700 bales from 339,700 the prior week. The primary destinations included China, 185,400 bales; Turkey, 59,500; Vietnam, 17,600; Indonesia, 14,300; Taiwan, 13,700; and Mexico, 11,200.
To achieve the export forecast, shipments need to average roughly 242,900 RB of all cotton per week. Shipments for the season are 1.258 million RB or about 18% ahead of exports a year ago.
Net all-cotton new-crop sales slipped to 64,200 bales from 99,200 the previous week, with upland sales falling to 59,300 from 103,000 and Pima sales rising to 4,900 from cancellations of 3,800. Sales for this season and next totaled a combined 232,300 bales, against 254,800 the prior week.
Upland new-crop sales were primarily for El Salvador, 26,600 bales; Thailand, 13,600; and South Korea, 10,200.
The all-cotton commitments for 2013-14 reached 1,283,700 RB, up 366,300 bales from forward bookings a year ago. New-crop commitments are almost 12% of the USDA projection at the Agricultural Outlook Forum.
Futures open interest increased 884 lots Wednesday to 211,719, with MayΆs down 3,777 to 107,525, JulyΆs up 3,436 lots to 58,899 and DecemberΆs up 1,075 lots to 43,187. Certificated stocks declined 604 bales to 421,976, with 33,124 bales awaiting review.
World values as measured by the Cotlook A Index gained 20 points Thursday morning to 95.70 cents. The index premium to WednesdayΆs May futures settlement narrowed 15 points to 6.48 cents.
