Robust new-crop export sales boost commitments to 30% of USDAΆs increased 2014-15 estimate. Old-crop commitments stand at 106% of the 2013-14 estimate and shipments at 97%.
Cotton futures traded both sides of unchanged in choppy price action in benchmark December and finished about flat at midrange Thursday.
December settled up a point at 67.65 cents, trading within a tight 81-point range from up 42 points to 68.06 cents to down 39 points at 67.25 cents. Spot October closed up six points to 68.45 cents and March settled down seven points to 68.23 cents.
Volume declined to an estimated 12,600 lots from a final 16,705 lots the previous session when spreads totaled 3,038 lots or 18%, EFS 549 lots and EFP 262 lots. Options volume totaled 3,253 calls and 1,683 puts.
Net U.S. all-cotton export sales for delivery this season and next climbed to a combined 364,200 running bales during the week ended July 10, largest for the two crop years since mid-May and up from 271,500 bales the prior week.
Robust sales for 2014-15 of 342,900 bales, up from 203,400 bales the week before, topped some expectations as mills took advantage of lower prices to book the largest forward sales of this marketing year.
The reporting week preceded release of USDAΆs eagerly awaited supply-demand estimates on July 11. Mills sometimes exercise caution ahead of major USDA reports.
New-crop commitments reached 2.976 million bales, rising to 30% of USDAΆs 2014-15 export estimate and widening the lead over forward sales a year ago to 830,000 bales. A year ago, forward bookings were 21% of the current USDA estimate for 2013-14.
Old-crop sales of upland and Pima combined of 21,300 running bales, down from the prior weekΆs 68,100 bales, brought 2013-14 commitments to 10.803 million RB, down about 20% from a year ago. Commitments were about 106% of the estimate, against about 107% of final shipments last year.
All-cotton shipments slumped to only 86,600 running bales from 141,200 bales the prior week. Exports for the season of 9.888 million RB, about 20% behind year-ago shipments, totaled about 97% of the estimate, about the same as the percentage of final shipments at the corresponding point last season.
Shipments moved to within roughly 298,000 RB of USDAΆs estimate for the marketing year ending July 31. With outstanding sales having declined to 915,900 RB, rollovers of unshipped sales into the new marketing year will be below the 953,900 RB carried into 2013-14 from 2012-13.
Futures open interest gained 563 lots Wednesday to 150,491, with DecemberΆs up 148 lots to 118,606 and MarchΆs up 397 lots to 24,876. Cert stocks declined 10,395 bales to 311,060. There were 2,996 newly certified bales and 13,391 bales decertified. No cotton awaited review.
World values as measured by the Cotlook A Index held steady Thursday morning at 83.05 cents. The premium to WednesdayΆs October futures settlement narrowed 14 points to 14.66 cents.
Forward A Index values for 2014-15 dipped 15 points to 75.55 cents, widening the discount to the 2013-14 index by 15 points to 7.50 cents and narrowing the premium to WednesdayΆs December futures close by four points to 7.91 cents.
