December posted its largest gain since July 1. U.S. all-cotton export commitments reached about 105% of the USDA forecast and shipments about 95%.
Cotton futures climbed above prior-session highs and settled with strong gains in the upper half of the dayΆs trading ranges Thursday.
December closed up 118 points to 84.85 cents after trading within a 188-point range from down three ticks at 83.64 to up 185 points at 85.52 cents. This was its largest daily closing gain since July 1.
March advanced 121 points to settle at 83.38 cents, trading within a 175-point span from up 18 points at 82.35 to up 193 points at 84.10 cents.
Scale-down mill fixations amid some increased inquiries below 84 cents, basis December, offered support, analysts said.
Volume increased to an estimated 14,900 lots from 10,053 lots the previous session when spreads totaled 1,444 lots or 13%, EFS 13 lots and EFP 3 lots. Options volume totaled 1,911 calls and 1,292 puts puts.
Net U.S. weekly current-crop export sales of all cotton of 55,200 running bales during the week ended July 11 lifted commitments to 13.557 million, up 927,000 bales or 7% from a year ago.
Commitments amounted to about 105% of the latest USDA estimate, compared with about 111% of final exports a year ago.
All-cotton shipments of 139,800 running bales brought exports for the season to 12.294 million, up 1.475 million or about 14% from a year ago and about 95% of the USDA forecast. Year-ago shipments also were about 95% of final exports.
Weekly shipments need to average something like 304,000 running bales to reach the USDA estimate by the end of the marketing year on July 31.
New-crop sales of 45,400 running bales of all cotton hiked 2013-14 commitments to 2.145 million, about 438,000 behind forward sales a year ago and about 20% of the USDA projection. A year ago, forward bookings also were about 20% of the current 2012-13 forecast.
Futures open interest fell 1,339 lots Wednesday to 159,454, with DecemberΆs down 1,607 lots to 138,814 and MarchΆs up 289 lots to 14,130.
Certificated stocks fell 21,992 bales to 518,132. There were 22,002 bales decertified, 10 bales newly certified and 34 bales awaiting review.
World values as measured by the Cotlook A Index dropped 65 points Thursday morning to 91.15 cents. The premium to WednesdayΆs December futures settlement widened five points to 7.48 cents.