U.S. export commitments have reached about 41% of the USDA estimate and shipments nearly 12%.
Cotton futures settled lower Thursday as profit-taking took back about three-fourths of the previous sessionΆs strong finish.
Benchmark December settled off 82 points to 84.72 cents, reversing from a new high for the move overnight to close around the lower third of its 158-point range from up 24 points at 85.78 to down 134 points at 84.20 cents. It posted the highest intraday print since Aug. 21 and held on the downswing above WednesdayΆs low.
Thinly traded October, where first notice day arrives Tuesday, settled down 39 points to 85.34 cents and March closed off 68 points to 84.46 cents.
Volume fell to an estimated 12,300 lots from 15,561 lots the previous session when spreads totaled 2,179 lots or 14%, exchange-for-swaps 5,000 lots and EFP 3 lots. Options volume slowed to 1,409 lots — 632 calls and 777 puts.
Net U.S. all-cotton export sales for shipment this season of 111,100 running bales during the week ended Sept. 12 lifted commitments to 4.007 million, widening the gap behind sales a year ago to 1.223 million bales. Sales fell for the second week in a row and came in below expectations.
Commitments reached 40% of the USDA estimate, against about 41% of 2012-13 exports at the corresponding point last season. Sales need to average roughly 135,100 running bales a week to match the USDA estimate.
All-cotton shipments of 128,500 running bales brought exports for the season to 1.162 million RB. This narrowed the lead over exports a year ago by 62,400 bales to 107,500.
Shipments reached nearly 12% of the USDA forecast, compared with about 8% of 2012-13 exports a year ago. To reach the forecast, shipments need to average approximately 198,400 running bales a week.
No new sales were registered for 2014-15, leaving those commitments at 153,100 bales, down from year-ago forward bookings of 178,400 bales.
On the competitive pricing front, the average of the five lowest-priced world growths for the Far East gained 141 points to 89.64 cents during the week ended Thursday, according to USDA, while the lowest-quoted U.S. growth landed there rose 110 points to an average of 94.15 cents. The U.S. premium thus narrowed 31 points to 4.51 cents.
The adjusted world price for the week ahead is 69.40 cents, USDA announced, up from 67.99 cents this week. Fine count adjustments rose 25 points to 1.01 cents for the 2013 crop and 0.86 of a cent for the 2012 crop.
Futures open interest expanded 4,779 lots Wednesday to 181,275, with DecemberΆs up 460 lots to 119,457 and MarchΆs up 4,265 lots to 48,810. Certificated stocks dipped two bales to 15,054. No cotton awaited review.
The lateness of the crop along with uncertainties concerning quality and weather has raised some questions about timely replenishment of stocks in deliverable position as harvesting gains momentum.
World values as measured by the Cotlook A Index gained 115 points Thursday morning to 91.45 cents. The index premium to WednesdayΆs December futures settlement widened five points to 5.91 cents.
