Cotton Rallies from New Lows to Close Higher
Scattered showers continued to dot the Texas Plains. U.S. all-cotton weekly export sales came in precisely even those of the previous week and shipments quickened.
Cotton futures settled on modest gains Thursday, rallying from oversold readings after slipping to new contract lows for the fourth session in a row.
Benchmark December finished up 34 points to 60.31 cents, just above the midpoint of its 110-point range from down 27 points at 59.70 to up 83 points at 60.80 cents. March closed up 49 points to 60.12 cents, trading within a 104-point span from 59.45 to 60.49 cents.
No deliveries were issued on this first notice day for maturing October, which didnΆt register a trade. October had an open interest coming into the session of 45 lots, down 10.
Scattered showers and a few thunderstorms continued to dot the Texas High Plains into the afternoon, extending interrupted applications of harvest-aid chemicals.
Localized rainfall was expected around a quarter to half an inch, with lesser amounts in most areas. A 20% chance for showers and thunderstorms now is forecast for the Lubbock area for Saturday.
Volume increased to an estimated 20,000 lots from 18,009 lots the previous session when spreads accounted for 5,098 lots or 28%, EFP 280 lots and EFS 92 lots. Options volume totaled 3,295 calls and 7,656 puts.
Net U.S. all-cotton export sales for shipment this season for the week ended Sept. 17 came in precisely even with those of the prior week at 100,600 running bales. Upland net sales dipped to 90,800 RB from 96,600 RB and Pima sales rose to 9,800 RB from 4,000 RB.
Commitments reached 3.078 million RB, widening the gap behind bookings a year ago by 58,000 RB to 2.239 million RB. Bookings were 31% of the USDA estimate, compared with 49% of final shipments at the corresponding point last season.
All-cotton shipments rose to 114,500 RB from 66,400 RB, bringing the total for the season to 824,500 RB and widening the lead over exports a year ago to 125,000 RB. Cumulative shipments were 8% of the USDA forecast, against 6% of final 2014-15 shipments a year ago.
To achieve the USDA forecast, shipments need to average roughly 197,200 RB a week, while sales averaging 148,200 RB would match the export projection.
New-crop sales declined to 5,000 RB from 14,500 RB. This brought 2016-17 commitments to 210,100 RB, widening the margin behind forward sales a year ago by 6,500 RB to 200,400 RB.
Futures open interest expanded 1,887 lots Wednesday to 184,023, with DecemberΆs up 1,112 lots to 122,033 and MarchΆs up 477 lots to 45,936. Certificated stocks declined 527 bales to 47,911, smallest since April. A year ago, deliverable stocks were 18,545 bales.
