Big U.S. weekly export sales boost 2013-14 commitments to nearly 102% of the latest USDA estimate. Upland sales of 358,300 bales ranked as the largest since the week ended Jan. 23.
Cotton futures shrugged off larger-than-expected U.S. weekly export sales to finish with triple-digit losses Thursday.
Spot July popped above highs of the previous three sessions on the heels of the USDA export sales report, but steadily retreated to settle at 87.78 cents, down 151 points and its lowest close since March 3. It traded within a 290-point span from up 137 points at 90.66 to down 153 points at 87.76 cents.
December closed down 115 points to 80.73 cents, three ticks off the low of its 198-point range from up 80 points at 82.68 to down 118 points at 80.70 cents. It has lost ground nine consecutive sessions and closed at its lowest finish since April 9 amid forecasts for widespread rain on the drought-stricken Texas High Plains.
Volume jumped to an estimated 31,500 lots from 17,209 lots the previous session when spreads totaled 5,634 lots or 33%, EFP 44 lots and EFS five lots. Options volume totaled 3,555 calls and 2,514 puts.
Net all-cotton export sales for shipment this season of 360,000 running bales during the week ended May 15, up from 36,400 bales the previous week, boosted 2013-14 commitments to 10.270 million RB. Upland sales of 358,300 bales were the largest since the week ended Jan. 23.
All-cotton commitments reached nearly 102% of USDAΆs export estimate, about the same percentage of final 2012-13 shipments at the corresponding point last season. Commitments trailed year-ago sales by 2.615 million bales or about 20%.
Shipments of 197,000 running bales of upland and Pima combined, down from 228,400 bales the previous week, brought exports for the season to 8.617 million. Exports totaled about 85% of the estimate, against about 84% of final shipments a year ago.
To achieve the USDA forecast, shipments need to average roughly 147,100 running bales a week. Exports were 1.953 million RB or about 19% below shipments a year ago.
Net sales for shipment next season leaped to 158,400 RB from 12,600 RB of upland-Pima combined the week before and hiked 2014-15 commitments to 1.874 million RB, up 228,000 RB from forward sales a year ago.
New-crop commitments amounted to about 20% USDAΆs initial 2014-15 projection issued earlier this month. A year ago, forward bookings were about 16% of the current 2013-14 estimate.
Futures open interest expanded 1,374 lots Wednesday to 190,598, with JulyΆs up 367 lots to 111,389 and DecemberΆs up 859 lots to 70,394. Cert stocks grew 4,331 bales to 429,081. There were 5,325 newly certified bales, 994 bales decertified and 4,292 bales awaiting review.
World values as measured by the Cotlook A Index gained 20 points Thursday morning to 92.35 cents. The premium to WednesdayΆs July futures settlement narrowed nine points to 3.06 cents.
Forward A Index world values for 2014-15 were unchanged at 89.45 cents, widening the discount to the 2013-14 index by 20 points to 2.90 cents and the premium to WednesdayΆs December futures close by four points to 7.57 cents.
