Harvest expected to gain speed. Lubbock classing office graded 21,965 bales this week. Adjusted world price set at 68.61 cents. All-cotton export sales totaled 117,300 bales for the week ended Sept. 26.
Cotton futures retreated Friday, unable to sustain momentum from the prior dayΆs reversal from a multi-week low and higher close.
Spot December closed off 71 points to 83.11 cents, in the lower quarter of its 157-point range from up 58 points at 84.40 to down 99 points at 82.83 cents. March settled down 65 points to 84.30 cents.
The December high, set overnight, was smack on the 40-day moving average. For the week, December eased 26 points and March eked out an eight-point gain.
Volume rose to an estimated 18,400 lots from 17,881 lots the previous session when spreads accounted for 5,232 lots or 29% and EFP for 770 lots. Options volume totaled 4,042 calls and 10,200 puts.
Harvesting is expected to gain speed under sunny to mostly sunny skies during the next week the Texas High Plains. Generally favorable harvest conditions also are expected for the next few days in much of the remainder of the U.S. Cotton Belt.
A low of 32 degrees is forecast at Lubbock tonight, possibly facilitating plant dry-down in parts of the area. Daytime highs through next Thursday are expected to range from the mid-60s to mid-70s.
The Lubbock classing office graded 21,965 bales during the week ended Thursday to bring the total for the season to 25,080 bales, compared with 60,330 bales a year ago.
Color grades have been high, with 74.8% of the season total at the top grade of 11 or good middling. Leaf grades have averaged 2.31, staples 35 and longer totaled 76.8% and mikes averaged 3.7. Strength averaged 31.05, uniformity 80.11 and bark totaled 17.3%.
Meanwhile, the average of the five lowest-priced world growths for the Far East declined 144 points to 88.85 cents during the week ended Thursday, according to USDA, while the low U.S. quote landed there fell 165 points to 92.80 cents. The U.S. premium thus narrowed 21 points to 3.95 cents.
For the week through next Thursday, the adjusted world price is 68.61 cents. An AWP wasnΆt announced for the last program week because of the government shutdown, but it would have been 70.05 cents under the current methodology. Fine count adjustments for the week ahead are 102 points for the 2013 crop and 87 points for the 2012 crop.
Futures open interest increased 437 lots Thursday to 204,554, with DecemberΆs down 1,619 lots to 119,085 and MarchΆs up 1,323 lots to 64,450. Fund rolling from December is expected to quicken later this month and into early November. Commercials may be hedging some sales in March.
Certificated stocks grew 7,127 bales, reflecting 7,146 newly certified bales and decertification of 19 bales. Cotton awaiting review rose to 48,780 bales.
World values as measured by the Cotlook A Index gained 50 points Friday morning to 89.95 cents. The index premium to ThursdayΆs December futures settlement narrowed 16 points to 83.82 cents.
After the close, USDA reported that net U.S. all-cotton export sales totaled 117,300 running bales during the week ended Sept. 26, up from 87,300 bales the previous week.
Upland net sales of 64,300 bales were down 3% from the previous week and 45% from the prior four-week average, while Pima sales jumped to 53,000 bales from 20,900 bales the week before. Gross upland sales were 68,100 bales and cancellations were 3,800 bales.
All-cotton shipments edged up to 108,200 RB from 107,500 the previous week. Upland shipments of 100,600 RB were up 4% from the prior week but down 10% from the prior four-week average.
The report was delayed because of the government shutdown.
