Strong export sales lifted 2012-13 commitments to 103% of the USDA estimate and hefty shipments reached 87%. Growers assess crop situation after thunderstorms rumbled through the Plains.
Cotton futures rallied off a setback below prior-session lows to settle higher and near the highs with outside-range reversals Thursday.
Spot July settled up 135 points to 84.87 cents, trading within a 225-point range from down 79 points at 82.73 cents to up 146 points at 84.98 cents. This was a new high close since May 20.
December closed up 49 points to 85.39 cents, trading within a 189-p;oint range from down 135 points at 83.55 to up 54 points at 85.44 cents.
Volume quickened to an estimated 34,800 lots from 26,765 lots the previous session when spreads totaled 12,590 lots or 47%, EFP 431 lots and EFP 68 lots. Options volume totaled 3,936 calls and 3,483 puts.
Strong U.S. all-cotton weekly export sales of 185,200 running bales for shipment this season lifted 2012-13 commitments to 13.19 million bales and widened the lead over year-ago bookings to 924,000 bales or to 8%. Commitments totaled 103% of the USDA estimate, against 108% of final exports a year ago.
Robust all-cotton shipments of 307,100 running bales boosted the total for the crop year to 11.196 million, widening the lead over exports a year ago to 1.647 million or to 17%. Shipments totaled 87% of the forecast, compared with 84% of final exports at the corresponding point last season.
To achieve the USDA forecast, shipments now need to average roughly 207,900 running bales a week.
Sales for shipment next season of 138,400 bales, largest since the week ended Feb. 7, brought 2013-14 commitments to 1.823 million bales, up 153,000 bales from forward bookings a year ago.
New-crop commitments totaled 16% of USDAΆs 2013-14 export estimate, compared with forward bookings a year ago at 13% of the current 2012-13 forecast.
Meanwhile, slight chances for additional showers and thunderstorms are forecast for tonight into Saturday in the Lubbock area on the Texas High Plains as growers continued to assess the crop situation after storms rumbled through the region Wednesday night.
Widespread severe weather isnΆt expected on Friday but isolated severe storms will be possible, forecasters say. The broad band of thunderstorms and strong winds Wednesday night brought both beneficial rainfall and an undetermined amount of crop damage.
Large acreages had been dry-planted and now may have enough moisture in places to bring cotton to a stand if subsequent conditions are favorable. However, growers pointed out that a lack of subsoil moisture means timely rains still would be required to get the crop to harvest.
A Lynn County producer said irrigated cotton hit by blowing sand “looks black — like its dead — from the road” but on closer field inspection appears it “will be o.k.”
However, he pointed out that “sand burn” on young cotton is particularly hard to assess right after a big windstorm. Stands that appear initially likely to survive can be weakened or lost by plants dying over time, he added.
Some industry estimates indicated 75% to 80% of the crop may have been planted in the Lubbock area, with stands having been achieved on less than half the planted area.
Futures open interest fell 1,518 lots Wednesday to 179,218, with JulyΆs down 3,075 lots to 89,442 and DecemberΆs up 977 lots to 81,510.
Certificated stocks grew 2,801 bales to 523,476. There were 4,036 newly certified bales, 1,235 bales decertified and 12,726 bales awaiting review.
World values as measured by the Cotlook A Index dropped 40 points Thursday morning to 92.70 cents. The index premium to WednesdayΆs July futures close widened 64 points to 9.18 cents.