ChinaΆs crop estimated at 29.01 million bales by ministry official. U.S. export commitments reached 4.095 million running bales, down 1.269 million from a year ago.
Cotton futures settled moderately ahead at a six-session high close Thursday as reports of a smaller crop in China offered support along with a chart pattern of upward-slanting daily lows.
Benchmark December settled up 82 points to 85.47 cents, just off the high of its 93-point range from unchanged at 84.65 cents to 85.58 cents. It closed above highs of the previous four sessions at its highest finish since Sept. 18 when the Federal Reserve stunned the markets by deciding not to scale back its massive stimulus program.
Maturing October, which didnΆt trade the prior day and had an open interest of only 29 lots, closed up 77 points at 84.50 cents and March settled up 76 points to 85.18 cents.
Volume slowed to an estimated 11,700 lots from 14,975 lots the previous session when spreads totaled 5,321 lots or 36% and EFP five lots. Options volume totaled 2,611 calls and 2,100 puts.
China, the worldΆs largest cotton consumer and importer, is expected to produce 6.315 million metric tons (29.01 million bales), down 5.6% from last year, according to a Ministry of Agriculture planting department official quoted in a China Cotton Association report.
The lower production was attributed to a smaller planted area and unfavorable weather, Dow Jones Newswires said in a report quoting the ministry official and the association.
Market activity in China will be suspended Oct. 1-7 for national holidays.
The USDA earlier this month projected the crop in China, also the worldΆs largest cotton producer, at 33 million bales, 2 million bales from its estimate of the 2012-13 output and a three-year low. Updated USDA supply-demand estimates will be released Oct. 11.
Meanwhile, net U.S. all-cotton export sales of 87,400 running bales during the week ended Sept. 19 for shipment this season boosted 2013-14 commitments to 4.095 million, down 1.269 million bales from a year ago.
Commitments reached about 41% of the USDA forecast, compared with about 42% of final 2012-13 shipments at the corresponding point last season. Sales need to average roughly 136,200 running bales a week to match the USDA estimate.
All-cotton shipments of 107,500 running bales brought exports for the season to 1.27 million, narrowing the lead over exports a year ago to about 52,000 bales. Shipments have reached almost 13% of the USDA estimate, against nearly 10% of final exports a year ago.
To achieve the USDA forecast, which is 20% below last seasonΆs exports, shipments need to average approximately 200,400 running bales per week.
Futures open interest expanded 2,718 lots Wednesday to 185,171, with DecemberΆs up 995 lots to 119,536 and MarchΆs up 1,461 lots to 52,072. Certificated stocks fell 5,716 bales to 14,102.
World values as measured by the Cotlook A Index gained 25 points Thursday morning to 90.55 cents. The premium to WednesdayΆs December futures settlement narrowed two points to 5.90 cents.
