U.S. export sales slowed but remained well above the weekly average needed to reach the USDA estimate. Shipments climbed to 191,300 bales.
Cotton futures rallied from an early morning dip to settle moderately ahead at a new high close for the move Thursday.
Spot March gained 57 points to close at 83.06 cents, just off the high of its 144-point range from down 80 points at 81.69 to up 64 points at 83.13 cents. This was its highest close since Oct. 22. March has posted five higher intraday highs in a row.
May gained 45 points to settle at 82.80 cents, while July — the last of the 2013-14 deliveries — rose 41 points to 82.07 cents and new-crop December edged up 28 points to 76.97 cents.
Volume slipped to an estimated 21,300 lots from 28,706 lots the previous session when spreads accounted for 8,961 lots or 31%. Options volume totaled 3,479 calls and 2,482 puts.
Net U.S. all cotton export sales for shipment this season slowed to 177,400 running bales during the week ended Dec. 5 from 253,800 bales the previous week.
Commitments rose to 6.823 million running bales, widening the margin behind bookings a year ago by 122,000 bales to 1.430 million or about 17%. The 2013-14 sales plus shipments stood at 68% of the USDA estimate, compared with 65% of final shipments at the corresponding period last season.
All-cotton shipments rose to 191,300 running bales from 119,400 the previous week, lifting the total for the season to 2.461 million RB and narrowing the gap behind year-ago exports to 385,000 RB or about 14%.
Cumulative shipments were about 24% of the USDA projection, against about 23% of the final count a year ago.
To achieve the USDA projection, shipments need to average roughly 231,100 running bales a week and sales approximately 99,000 RB.
Meanwhile, China is reported considering adjustments in its import quota tariffs. Details arenΆt known, but sources said the sliding-scale cotton tariff rate could be altered for 2014.
Futures open interest dipped 23 lots Wednesday to 160,950, with MarchΆs down 2,320 lots to 108,460 and MayΆs up 1,840 lots to 29,411 amid the rolling of some short hedges from March into May.
Certificated stocks declined 2,173 bales to 59,346. There were 2,202 bales decertified and 29 newly certified bales. Awaiting review were 3,926 bales, all at Memphis. Supplies of high quality cotton have remained tight.
World values as measured by the Cotlook A Index advanced 160 points Thursday morning to 88.40 cents. The premium to WednesdayΆs March futures settlement narrowed 20 points to 5.91 cents.
