December closed at lowest since June 11 amid steep losses in outside markets. Informa projects plantings at 10.371 million acres.

Cotton futures continued to lose ground Thursday amid steep losses in global stocks and commodities on concerns that the Federal Reserve may phase out its unprecedented stimulus and a cash crunch in China.

Most-active December closed down 124 points to 85.36 cents, slightly below the middle of its 230-point range from up seven points at 86.67 cents on the opening high to down 223 points at 84.37 cents. It extended its losing streak to four sessions in a row and settled at its lowest finish since June 11.
July, with first notice day looming on Monday, closed down 48 points to 84.92 cents. It traded within a 186-point range, reversing from up 81 points at 86.21, above the prior-day high, to a low of 84.35 cents, five ticks below WednesdayΆs low.

Volume rose to an estimated 23,700 lots from 21,235 lots the previous session when spreads totaled 6,869 lots or 32%, EFP 500 lots and EFS 88 lots. Options volume totaled 3,078 calls and 6,092 puts.

U.S. plantings have been estimated by Informa Economics, Memphis-based analytical firm, at 10.371 million acres, sources said, up from 10.026 million acres projected by USDA but down from 12.315 million acres seeded last year.

Informa estimated upland plantings at 10.155 million acres, up from 9.82 million acres forecast by USDA. The USDA earlier this month carried forward in its supply-demand report the acreage estimate from the March intentions, which showed a reduction of 19% from last yearΆs plantings.

The largest increase in the Informa estimate is in Texas, the largest cotton producing state. The Lone Star State acreage is projected at 5.7 million, up from 5.5 million forecast by USDA but down from 6.55 million acres in 2012.

The USDA will update its planting estimates on June 28. This report will include actual plantings as of early June as well as estimates for any remaining cotton intended to be planted.

As of June 16, U.S. plantings had reached 95% of the expected acreage, compared with 98% last year and the five-year average of 97%, according to USDAΆs weekly progress report. The Texas crop was 95% planted, against 97% a year ago and even with the average.

Based on projections at the time, USDA forecast the harvested area at 8.1 million acres, implying an abandonment of 19%. Historically, the Southwest has accounted for the bulk of the U.S. abandonment.

The USDA projected abandonment in the Southwest at 32%, above the 10-year average of 25% but about half the rate sustained in 2011. The U.S. yield forecast remained at 800 pounds, compared with 887 pounds in 2012-13 and the five-year average of 817 pounds.

Futures open interest fell 2,625 lots Wednesday to 173,371, with JulyΆs down 3,554 lots to 12,765 and DecemberΆs up 748 lots to 145,931.
Certificated stocks grew 5,123 bales to 550,928. There were 61,815 bales awaiting review.

World values as measured by the Cotlook A Index dropped 70 points Thursday morning to 93.60 cents. Premiums to WednesdayΆs futures settlements narrowed 112 points to 8.20 cents to July and widened two points to 7 cents to December.