U.S. 2016-17 export commitments widened the lead over year-ago bookings to nearly 3.1 million running bales and reached 67% of USDAΆs updated forecast. National Cotton Council launched its 2017 planting intentions survey.
Cotton futures bounced off a three-session low to finish a lightly traded, narrow-range session slightly higher Thursday.
Spot March edged up 20 points to settle at 71.67 cents, near the high of its 67-point range from down 37 points at 71.10 to up 30 points at 71.77 cents. It closed back above its 18-day moving average after a one-day stand below it and two previous days above it.
May gained 28 points to close at 71.92 cents, while December 2017 rose 47 points to settle at 69.72 cents.
Volume slowed to an estimated 14,713 lots from 16,443 lots the previous session when spreads accounted for 4,763 lots or 29%, EFP 159 lots and EFS 150 lots. Options volume totaled 951 calls and 1,527 puts.
Net U.S. all-cotton sales for shipment this season of 318,100 running bales during the week ended last Thursday, down from the marketing year high of 409,400 RB the prior week, boosted 2016-17 commitments to 7.98 million RB.
Commitments widened the lead over year-ago bookings by 209,000 RB to 3.051 million or to 62% and reached 67% of USDAΆs latest export estimate. A year ago, commitments were 55% of final shipments.
All-cotton shipments of 235,100 RB, down slightly from 237,700 RB the previous week, brought the total for the season to 3.231 million, widening the lead over year-ago exports by 128,000 RB to 1.267 million or to 65%.
Shipments were 27% of the USDAΆs expanded projection, compared with 22% of final 2015-16 exports at the corresponding point last season.
To achieve the USDA forecast, shipments now need to average roughly 253,300 RB a week, while weekly sales averaging approximately 113,600 RB would match export estimate.
Sales of 66,000 RB for shipment next season, the first new-crop export business in three weeks, lifted 2017-18 commitments to 560,700 RB, still behind forward bookings a year ago of 695,300 RB.
Meanwhile, the National Cotton Council has launched its widely watched annual planting intentions survey to aid with industry planning and policy deliberations.
In an effort to improve the survey, the council said it is giving producers the opportunity to fill out the survey online. All responses are confidential and anonymous. Growers have been asked to respond by Jan. 16.
A summary of the survey results will be announced at the joint meeting of program committees on Saturday, Feb. 11, at the councilΆs annual meeting in Dallas.
Talk has circulated of prospects for an increase in U.S. 2017 cotton plantings, based on recent relationships of acreage-competing crops.
Futures open interest inched up 34 lots Wednesday to 252,832, with MarchΆs down 148 lots to 177,987 and MayΆs down 80 lots to 40,445. Cert stocks declined 119 bales to 77,776. There were 2,256 newly certified bales and 2,375 bales decertified.
