Expectations for U.S. weekly upland export sales appear to range predominantly from around 200,000 to 250,000 bales.
Cotton futures traded inside the prior dayΆs range for a second day and finished with back-to-back losses Thursday.
Spot March settled off 51 points to 87.33 cents, in the lower third of its 120-point range from up 31 points at 88.15 cents to down 89 points at 86.95 cents. Its settlement discount to May — it had traded at a 60-point premium near the end of December — widened to 28 points.
The May contract closed down 40 points to 87.61 cents, July dipped 13 points to 87.54 cents and December slipped 36 points to 79.31 cents. December had met formidable resistance in recent sessions at 80 cents.
U.S. upland export sales expectations for the week ended Jan. 16 appear to range predominantly from around 200,000 to 250,000 running bales. The report is scheduled for release at 7:30 a.m. CST Thursday, a day later than usual because of the holiday on Monday.
Prices during the reporting week ranged intraday from 82.39 to 86.67 cents, basis March, and on a closing range from 82.59 to 86.19 cents.
Net upland sales the previous week were 223,700 bales on gross sales of 274,600 bales and cancellations of 50,900 bales. Those were the largest cancellations since the week ended Oct. 3. Cancellations the last several weeks have been minor.
Export inquiries are said to have subsided as futures have risen, with March posting a five-month high earlier this week. Talk has circulated of some switching to foreign growths and possible buy-backs.
Perceptions that higher prices were required to ration tight U.S. supplies helped to drive futures to six higher closes in a row through Tuesday. The U.S. carryout this season is projected to fall 900,000 bales from beginning stocks to 3 million, lowest in four years and the third lowest since 1995-96.
Export sales the previous eight reporting weeks, encompassing the Christmas and New Year holiday periods, have totaled 1.524 million running bales for a weekly average of 190,500 bales.
Futures open interest edged up 31 lots Wednesday to 185,859, with MarchΆs down 1,217 bales to 108,480 and MarchΆs up 354 bales to 39,588.
Certificated stocks continued to expand, rising 2,648 bales to 69,178, up from 34,087 bales early this month. The latest additions included 1,056 bales at Dallas-Fort Worth and 1,592 bales at Memphis. Awaiting review were 528 bales at Galveston.
World values as measured by the Cotlook A Index dipped 20 points Thursday morning to 94.25 cents. The index premium to WednesdayΆs March futures settlement widened nine points to 6.41 cents.
