U.S. export commitments reached about 70% of the USDA forecast and shipments about 26%. Share of world trade projected at only 27%.
Cotton futures closed with modest current-crop gains in light dealings Thursday, supported partly perhaps by larger-than expected U.S. weekly export sales.
Spot March settled up 33 points to 83.33 cents, in the upper half of its tight 72-point range from down 10 points at 82.90 to up 62 points at 83.62 cents. The high was within 10 points of TuesdayΆs rally high.
The May contract gained 30 points to 83.06 cents, July rose 31 points to 82.76 cents and December finished flat at 77.21 cents.
Volume slowed to an estimated 9,000 lots from 13,879 lots the previous session when spreads totaled 2,842 lots or 20%, EFS 5,000 lots and EFP six lots. Options volume totaled 929 calls and 1,085 puts.
Net all-cotton sales for delivery this season rose to 242,200 running bales during the week ended Dec. 12 from 177,400 the previous week. This lifted commitments to 7.065 million bales, widening the gap behind sales a year ago by 96,000 bales to 1.526 million.
Commitments have reached about 70% of the USDA export estimate, compared with about 68% of final exports at the corresponding period last season. Sales averaging roughly 94,500 running bales a week would match the USDA forecast.
All-cotton shipments slipped to 161,200 running bales from 191,300 bales, bringing exports for the season to 1.526 million. Shipments are about 400,000 bales behind the year-ago pace.
Exports have reached about 26% of the USDA projection, against about 24% of final shipments a year ago. Shipments need to average around 233,300 running bales a week to achieve the USDA projection.
Sales of 6,600 running bales for shipment next season boosted 2014-15 commitments to 250,500 bales, compared with 516,900 bales of forward bookings a year ago.
A smaller domestic supply and reduced foreign import demand — mainly owing to lower projected imports by China — are expected to drop U.S. exports to the lowest since 2000-01.
The U.S. share of world trade is projected at 27%, down from the five-year average of 34%.
Futures open interest expanded 1,770 lots Wednesday to 166,934, with MarchΆs up 1,524 lots to 111,204 and MayΆs down 15 lots to 31,623. Certificated stocks declined 99 bales to 41,714.
The Cotlook A Index of world values was unchanged Thursday morning at 88.15 cents. The premium to WednesdayΆs March futures settlement narrowed five points to 5.15 cents.
