U.S. all-cotton export commitments climbed to 7.7 million running bales, about 76% of the latest USDA estimate. Deadline is Friday to respond to NCC planting intentions survey.
Cotton futures powered to a 15-week intraday high on heavy volume, triggering buy stops on the way up, and closed higher for the fourth consecutive session Thursday.
Spot March settled up 119 points to 86.19 cents, its highest close since Oct. 4. It finished in the upper quarter of its 236-point range from down 48 points at 84.31 to up 188 points at 86.67 cents, its highest intraday price since Oct. 7.
Strong U.S. weekly export sales data and talk of another round of stout sales in prospect for next weekΆs report reinforced perceptions that that price rationing may be required to avoid overselling a tight supply.
The May contract closed up 146 points to 86.40 cents, July gained 121 points to 85.87 cents and December rose 50 points to 79.67 cents.
Volume jumped to an estimated 32,500 lots from 21,260 lots the previous session when spreads accounted for 8,104 lots or 38% and EFP 356 lots. Options volume totaled 10,321 calls and 5,576 puts.
Net U.S. all-cotton export sales of 239,700 running bales during the week ended Jan. 9 for shipment this season boosted 2013-14 commitments to 7.7 million RB, 76% of USDAΆs January forecast. A year ago, commitments also were 76% of 2012-13 exports.
Commitments trailed year-ago bookings by 1.959 million bales or by 20%, while the new USDA export estimate is down 19% from last season. Sales averaging only about 88,800 running bales a week are required to match the USDA forecast.
All-cotton shipments of 230,900 running bales brought the total for the season to 3.403 million, 606,000 bales or 15% behind year-ago exports.
Shipments have reached about 33% of the estimate, compared with about 32% of final exports at the corresponding point last season.
To achieve the USDA estimate, shipments need to average approximately 242,200 running bales a week.
Net sales of 9,300 running bales for delivery in the 2014-15 marketing year beginning Aug. 1 raised new-crop commitments to 309,800 running bales, 231,100 bales behind forward bookings a year ago.
Meanwhile, U.S. producers have been urged to respond to the National Cotton CouncilΆs annual survey of 2014 planting intentions by the deadline on Friday.
The survey questionnaire has been distributed to upland and Pima producers across the Cotton Belt through a combination of regular mail and email. Results will be unveiled on Feb. 8 at the annual NCC meeting in Washington, D.C.
Futures open interest dipped 69 lots Wednesday to 177,092, with MarchΆs down 1,101 lots to 107,178 and MayΆs up 717 lots to 35,138. Cert stocks grew 2,657 bales to 49,131.
World values as measured by the Cotlook A Index gained 100 points Thursday morning to 90.45 cents. The premium to WednesdayΆs March futures settlement narrowed six points to 5.66 cents.
