U.S. all-cotton weekly export sales for both crop years rose to 201,400 RB, as shipments neared USDAΆs forecast for 2016-17.

Cotton futures strengthened on the heels of the U.S. weekly export sales-shipments report, hitting the highest intraday price since June 21 in December and closed up 54 to 87 points in traded contracts Thursday.

December led the gains, settling at 68.98 cents, in the upper quarter of its 115-point range, from down a point at 68.1,0 to up 114 points at 69.25 cents. That was its highest settlement since June 19.

March gained 80 points to close at 68.60 cents, near the high of its 85-point range from 67.92 to 68.77 cents. October added 79 points to close at 69.55 cents, trading within a tight 40-point span from 69.37 to 69.77 cents.

Volume increased to an estimated 17,467 lots, from 11,476 lots the prior session, the lowest of the calendar year, when spreads accounted for 4,091 lots or 36%, EFP 17 lots and EFS nine lots. Options volume rose to 2,833 lots (979 calls and 1,854 puts) from 2,072 lots (1,748 calls and 324 puts).

Net U.S. all-cotton export sales quickened to a combined 201,400 running bales during the week ended last Thursday from 170,300 RB the prior week, as shipments remained on pace to exceed the USDA estimate for 2016-17.

Sales of upland and Pima combined for this season of 29,700 RB, up from the marketing year low of 15,600 RB the week before, boosted 2016-17 commitments to 15.234 million RB.

Duane Howell can be reached at Talk@dtn.com

Commitments — outstanding sales of 1.542 million RB plus shipments — remained at 108% of the USDA export estimate, fractionally above the percentage of final shipments at the corresponding point last season. The lead of commitments over cumulative sales a year ago narrowed 52,000 RB to 5.675 million RB or 59%.

All-cotton shipments of 283,200 RB, up from 202,700 RB the week before, brought the total for the season to 13.692 million RB. Shipments led weekly exports a year ago by 90,000 RB and topped last seasonΆs total by 5.279 million RB or a steady 63%.

Shipments were 97% of the USDA estimate, compared with 95% of final exports a year ago, and were within 373,300 RB of the forecast, depending upon the factor used in converting the typically heavier running bales to 480-pound statistical bales.

This would indicate it would take shipments at a per-week rate of around 149,300 RB, for the two-plus weeks left in the marketing year, to achieve the USDA forecast. Unshipped commitments at the end of the season will be rolled into the 2017-18 marketing year.

Sales for next season of 171,700 RB, up from 154,700 RB the previous week, boosted 2017-18 commitments to 4.891 million RB. New-crop commitments were up 2.589 million RB from forward sales a year ago.

The bulging new-crop commitments already amount to 37% of the USDA export projection, compared with forward sales at 16% of the current 2016-17 export estimate a year ago.

Futures open interest increased 488 lots to 216,590 on Wednesday, with DecemberΆs up 14 lots to 162,443 and MarchΆs up 482 lots to 36,163. Certified stocks declined 1,972 bales to 47,842. No cotton awaited review.