U.S. all-cotton weekly export sales of 223,700 running bales boosted commitments to 3.844 million RB, 34% of the USDA forecast. Rain chances rated at 20% to 30% the next few days in the Texas Plains.
Cotton futures settled modestly higher for a second day Thursday but well off the highs reached following the USDA weekly export sales report.
December closed up 20 points to 69.01 cents, a four-session high settlement but in the lower quarter of its 133-point range from up 134 points at 70.15 to up a point at 68.82 cents. It pushed above the psychological 70-cent mark in early morning activity but quickly slipped back below it.
Nearby October edged up 14 points to settle at 68.50 cents, March gained 34 points to 69.64 cents and December 2017 rose 18 points to 68.57 cents.
Volume increased to an estimated 22,751 lots from a light 17,713 lots the previous session when spreads accounted for 6,022 lots or 34% and EFP 105 lots. Options volume totaled 5,462 calls and 3,894 puts.
Net U.S. all-cotton export sales for shipment this season rose to 223,700 running bales for the week ended Aug. 11 from 141,000 RB the prior abbreviated reporting period, boosting 2016-17 commitments to 3.844 million RB, up 1.193 million RB from a year ago.
Commitments — outstanding sales of 3.545 million RB plus shipments — totaled 34% of the USDA export forecast, compared with 30% of the final for 2015-16 at the corresponding point last season.
All-cotton shipments of 181,700 RB brought exports for the season to 299,600 RB, up 70,000 RB from a year ago.
The USDA this month projected exports at 11.5 million statistical 480-pound bales, up 2.3 million bales or 25% from last season and the largest since 2012-13 when shipments were 13.03 million bales.
Upland sales of 13,200 RB for shipment next season raised 2017-18 commitments to 308,200 RB, up 159,300 RB from forward bookings a year ago.
On the weather front, chances for showers and thunderstorms have improved to 20% Thursday afternoon and night on the Texas High Plains. The activity is expected mainly to the south and east of Lubbock, extending into the Rolling Plains.
A few thunderstorms may become strong, forecasters say, with wind gusts to 55 miles per hour and small hail.
Additional rain chances are rated at 30% Friday and Saturday, diminishing to 20% on Sunday and lingering. Slight chances then linger into at least next Wednesday.
Rain would help the crop to hold onto its fruit and fill out bolls, sources say. The last effective bloom date varies across the region, considered under “normal” weather conditions to be mostly around Aug. 20 in the central High Plains at Lubbock.
Futures open interest dipped only nine lots to 235,454 on Wednesday, with DecemberΆs down 986 lots to 168,885 and MarchΆs up 1,078 lots to 44,628. Certificated stocks declined 9,860 bales to 74,218.
