Traders awaited the U.S. export sales-shipments report. Repayments of 119,915 RB reduced upland cotton under loan to 726,309 RB. Adjustment update set for AWP.
Cotton futures finished with fractional losses in deliveries through July 2018 and marginal gains beyond that on thin volume Wednesday.
December eased 11 points to close at 68.11 cents, in the middle of its tight 74-point range from up 25 points at 68.47 to down 49 points at 67.73 cents. March closed down 10 points to 67.80 cents, also in the middle of its 68-point range from 68.12 to 67.44 cents.
Volume slowed to an estimated 11,476 lots from 21,246 lots the previous session when spreads accounted for 4,926 lots or 23% and EFP nine lots. Options volume dropped to 2,072 lots (1,748 calls and 324 puts) from 5,682 lots (2,836 calls and 2,846 puts).
Traders awaited the U.S. weekly export sales-shipments report at 7:30 a.m. CDT Thursday. Prices during the reporting week ended last Thursday slipped 198 points, basis December, and traded from 68.92 to 66.30 cents, hitting the low on the last day of the period.
New-crop upland sales the prior reporting week — which spanned the July 4th holiday period — slid to a nine-week low to 152,600 running bales and have averaged around 298,600 RB the last four weeks.
Old-crop upland sales fell to a marketing year low of 13,000 RB, with the scarcity of uncommitted supplies likely playing a role, and have posted a four-week average of 159,000 RB.
Upland shipments slowed to 195,281 RB and have averaged roughly 251,700 RB for the last four weeks. With three-plus weeks then left in the marketing year, roughly 656,600 RB — depending upon bale weights — of upland and Pima combined remained to be shipped to meet the USDA estimate.
Running bale weights typically average about 15 to 20 pounds per bale more than the statistical 480-pound bales in USDA estimates. Many had expected USDA to raise its export estimate for 2016-17 in its July supply-demand report, but it left it unchanged at 14.5 million statistical bales.
Meanwhile, repayments on 119,915 RB reduced U.S. 2016-crop upland cotton under loan to 726,309 RB during the week ended July 10, according to the latest USDA figures.
Outstanding loans included 77,665 RB of Form A issued to individual growers and 649,022 RB of Form G issued to marketing cooperatives or loan servicing agents. An undetermined amount has been committed and is awaiting shipping orders.
On another front, an updated costs-to-market value is expected to be incorporated into the Thursday release of the adjusted world price.
An industry survey put the new transportation adjustment at 14.50 cents, similar to the current 14.53 cents. The quality adjustment also will be changed with the first AWP announcement in the 2017 marketing year. ItΆs expected to be 2.55 cents per pound, based on the premium and discount schedule.
Futures open interest dipped 36 lots to 216,102 on Tuesday, with DecemberΆs down 520 lots to 162,429 and MarchΆs up 369 lots to 35,681. Certified stocks declined 4,812 bales to 49,814. None awaited review.
