U.S. export commitments for 2013-14 reached 98% and shipments 83% of the latest USDA estimate. New-crop commitments totaled 18% of the initial 2014-15 projection.
Cotton futures extended a losing streak Thursday amid weak U.S. export sales, broad losses in commodities and a sharp selloff in equities.
Spot July dipped 34 points to close at 90.36 cents, its lowest finish since April 10 and in the lower quarter of its 119-point range from up 59 points at 91.29 to down 60 points at 90.10 cents. July has closed lower five times in a row and seven of the last eight sessions.
December closed off 26 points to 82.62 cents, in the lower half of its 118-point range from up 47 points at 83.35 to down 71 points at 82.17 cents. It settled on its lowest close since April 23.
Concerns over Russia and Ukraine combined with mixed U.S. and weak European economic data rattled global equity markets. Corn, soybeans and wheat finished in the red.
Volume rose to an estimated 16,300 lots from 14,743 lots the previous session when spreads totaled 4,718 lots or 32%, block trades 1,000 lots, EFP 328 lots and EFS 14 lots. Options volume totaled 2,983 calls and 3,780 puts.
Net U.S. all-cotton export sales for shipment this season of 36,400 running bales during the week ended May 8, down from 66,900 bales the previous week, brought 2013-14 commitments to 9.91 million RB, 98% of the new USDA estimate. A year ago, commitments were 101% of final exports.
Commitments were 2.868 million running bales or 22% below year-ago bookings, compared with USDAΆs latest projection for exports to fall 20% from 2012-13 shipments.
Shipments of 228,400 running bales, against the prior weekΆs 227,200 RB, boosted the total for the season to 8.42 million RB, about 83% of the USDA estimate. Shipments a year ago totaled about 82% of final exports.
Shipments trailed year-ago exports by 1.896 million RB or by 18%. To achieve USDAΆs May estimate, shipments need to average roughly 151,600 running bales a week, while weekly sales averaging around 16,200 RB would match the forecast.
All-cotton sales for shipment next season fell to 12,600 running bales from 152,500 bales the previous week, nudging 2014-15 commitments to 1.715 million. The margin ahead of forward bookings a year ago narrowed to 106,000 bales.
Commitments for 2014-15 were about 18% of USDAΆs initial new-crop projection. A year ago, forward bookings were about 16% of the latest export estimate for 2013-14. The USDA expects exports next season to decline about 7% from this seasonΆs shipments.
Sales for both marketing years fell to combined 49,000 running bales from 219,400 RB the previous week.
Futures open interest increased 1,715 lots Wednesday to 192,528, with JulyΆs up 743 lots to 116,325 and DecemberΆs up 969 lots to 67,991. Certificated stocks grew 5,822 bales to 401,681. There were 7,758 newly certified bales, 1,936 bales decertified and 4,663 bales awaiting review.
World values as measured by the Cotlook A Index dipped 20 points Thursday morning to 92.70 cents. The premium to WednesdayΆs July futures settlement widened three points to 2 cents.
Forward A Index world values for 2014-15 dropped 50 points to 90.30 cents, widening the discount to the 2013-14 index by 30 points to 2.40 cents and the premium to WednesdayΆs December futures close by seven points to 7.42 cents.
