U.S. old-crop upland export sales expectations reported mostly from 75,000 to 105,000 bales. Cotton Belt tour set for textile executives.
A rally attempt failed as cotton futures lost ground Thursday for the eighth straight session and finished at a new four-month-plus low close.
Spot July closed down 57 points at 80.13 cents, its lowest finish since Jan. 18 and the lower quarter of its 188-point range from up 105 points at 81.75 cents — four ticks above WednesdayΆs high — to down 83 points at 79.87 cents.
December settled off 55 points at 82.83 cents, also closing in the lower reaches of its 140-point range from up 62 points at 84 cents to down 78 points at 82.60 cents. This marked its lowest close February 26.
Volume increased to an estimated 31,900 lots from 24,490 lots the previous session when spreads totaled 11,978 lots or 49%, EFP 300 lots and block trades 90 lots. Options volume totaled 6,809 calls and 2,084 puts.
Expectations for old-crop U.S. weekly upland export sales for delivery this season range mostly from around 75,000 to 105,000 running bales, analysts said.
The report for the week ended May 23 is scheduled for release at 7:30 a.m. CDT Friday, a day later than usual because of the Memorial Day holiday on Monday.
Net upland sales of 101,700 bales for the week ended May 16 were up 37% from the previous week but down 45% from the prior four-week average. Shipments need to average roughly 228,300 running bales a week to achieve the USDAΆs latest forecast.
Textile executives from eight Chinese mills and two Hong Kong mills will tour the U.S. Cotton Belt June 9-16 to get a close look at production, processing and marketing and to meet with exporters.
China is U.S. cottonΆs largest consumer, having purchased 5.436 million statistical bales for delivery this season as of May 16 or 41% of export commitments, and Hong Kong ranks 18th.
This and similar trade missions seek to enhance trading ties between the U.S. cotton industry and key overseas textile manufacturing customers. The goal is to capture additional market share for U.S. cotton.
Cotton Council International President John Burch, Bakersfield, Calif., cooperative official, said in a release these CCI-sponsored trade missions are vital because U.S. cotton has become highly reliant on healthy exports.
Exports in 2013-14, estimated at 11.5 million bales, are forecast to account for 77% of the total demand for U.S. cotton and 82% of the projected crop.
During the 2012-13 marketing year, which ends July 31, the mills represented on this tour are expected to consume a combined 2.2 million bales, of which about 990,000 or 44% will be U.S. cotton, Burch said.
The 11 executives and a representative from China Textile News in Beijing will begin their tour in New York with a CCI briefing and an IntercontinentalExchange futures seminar.
They will observe cotton research in North Carolina, tour the USDA cotton classing office in Bartlett, Tenn., and visit a farm in CaliforniaΆs San Joaquin Valley. They also will meet with exporters in the four major Cotton Belt regions and with industry organizations.
Futures open interest fell 2,525 lots Wednesday to 183,754, with JulyΆs down 3,988 lots to 107,011 and DecemberΆs up 637 lots to 70,059.
Certificated stocks grew 2,729 bales to 512,672. Awaiting review were 15,552 bales for a possible total of 528,224 bales.
World values as measured by the Cotlook A Index fell 50 points Thursday morning to 89.60 cents. The index premium to WednesdayΆs July futures settlement widened 22 points to 8.90 cents.
