U.S. ginning totaled 5.565 million running bales as of Nov. 15, down 24% from a year ago. Weekly export sales report set for release Friday. Pakistani cotton crop projected down nearly 25% to 8.2 million bales.

U.S. cotton futures surged from quiet early dealings to top highs of the prior four weeks in most-active March in pre-holiday activity Wednesday.

• March settled up 134 points to 63.28 cents, its highest finish since Oct. 21 and in the upper quarter of its 181-point range from down nine points at 61.85 to up 172 points at 63.66 cents. Maturing December closed up 138 points to 61.98 cents and May settled up 119 points to 63.96 cents.
• Volume quickened to an estimated 30,900 lots from 13,759 lots the previous session when spreads accounted for 2,776 lots or 20% and EFP 21 lots. Options volume totaled 8,533 calls and 3,567 puts.

U.S. all-cotton ginned as of Nov. 15 totaled 5.565 million running bales,USDA reported, down 24% from 7.3 million RB processed through the corresponding period last season. Ginning through comparable periods amounted to 5.468 million RB in 2013 and 9.148 million RB in 2012.

Meanwhile, with government offices closed Thursday in observance of Thanksgiving, the USDA’s weekly U.S. export sales-shipments report is expected to be released at 7:30 a.m. CST Friday.

Sales are expected to come in below the six-week high of 194,400 running bales of upland registered during the last reporting week ended Nov. 12. Upland shipments were a crop year low of 53,800 RB. Sales the last four weeks have averaged 136,417 RB and shipments have averaged 89,137 RB.

On the international scene, cotton production in Pakistan is expected to reach 8.2 million bales, down nearly 25% from last yearΆs crop and the smallest since 2003, according to a recent U.S. agricultural attachΆ report from Islamabad.

This is down from USDAΆs November forecast of 9 million bales. Low domestic prices seem to have had the biggest impact on production, prompting farmers to reduce inputs such as fertilizer and insecticides.

Farmers are expected to reduce the number of pickings earlier than usual because of relatively low prices, opting instead to plant wheat, a crop for which there is a government support price.

Imports are expected to rise to 2.5 million bales, second highest on record, the report said. This is up from 1.15 million bales projected earlier this month by USDA.

Pakistan has increased the tariff on imported yarn to 15% from 5%, a move designed to support the domestic textile industry by discouraging yarn imports. The higher tariff on yarn is expected to support additional imports of cotton lint to augment reduced cotton production.

Importers in Pakistan appear to be looking to India and West Africa for additional cotton supplies, the report said. With India expected to export less cotton to China, additional volumes could be diverted to Pakistan, given the robust consumption estimate projected for India.

U.S. futures open interest declined 1,231 lots Tuesday to 170,519, with DecemberΆs down 163 lots to 131, MarchΆs down 1,191 lots to 128,356 and MayΆs up 12 lots to 24,066.

Certificated stocks grew 107 bales to 59,771. There were 1,023 newly certified bales, 916 bales decertified and 2,136 bales awaiting review.

World cotton futures settled up 132 points to 72.12 cents in the May contract, widening the premium over U.S. May futures by 13 points to 8.16 cents. Volume totaled four lots.