U.S. weekly upland export sales fell to a marketing year low but all-cotton commitments reported up 2.118 million bales from a year ago. IndiaΆs crop estimated at 26.25 million 480-pound bales by CAI.
Cotton futures fell to an eight-session low and finished in the red for the third day in a row Thursday after U.S. weekly export sales came in lower than generally expected.
Benchmark December settled down 75 points to 67.73 cents, trading within a 176-point range from up 56 points at 69.04 to down 120 points at 67.28 cents. March closed down 63 points to 68.35 cents and December 2017 finished down 64 points to 68.73 cents.
Sunny skies in the West Texas Plains and forecasts for favorable crop-finishing weather featuring dry, warmer-than-normal conditions for the next seven to 10 days may have contributed to the pressure on prices.
Volume increased to an estimated 22,312 lots from 18,481 lots the previous session when spreads accounted for 4,828 lots or 26% and EFP one lot. Options volume totaled 6,308 calls and 7,646 puts.
Net U.S. all-cotton export sales for shipment this season of 113,200 running bales during the week ended Sept. 22, down from 214,200 RB the previous week, brought 2016-17 commitments to 5.318 million RB, according to USDAΆs weekly export report.
Upland net sales fell to a marketing year low of 91,600 RB, down 54% from the previous week and 63% from the four-week average.
However, the lead of commitments over year-ago bookings narrowed only 9,000 RB to 2.118 million RB or to 66%. Commitments were 48% of the USDA export forecast, compared with 36% of final 2015-16 shipments at the corresponding point last season.
All-cotton shipments of 160,800 RB, down from 165,700 RB the prior week, boosted the total for the season to 1.423 million RB, up 522,000 RB or 58% from year-ago exports. Shipments amounted to 13% of the USDA estimate, compared with 10% of final exports a year ago.
To achieve the estimate, shipments need to average roughly 216,300 RB a week, while sales averaging approximately 129,700 RB would match the export forecast.
Net upland sales for shipment next season of 11,600 RB, up from 1,800 RB the week before, raised 2017-18 commitments to 428,000 RB. Forward bookings a year ago totaled 210,800 RB.
On the international crop scene, the Cotton Association of India has estimated IndiaΆs 2016-17 cotton production at 33.6 million 170-kilogram bales (26.25 million 480-pound bales), unchanged from its previous forecast and down 0.5% from last season.
That compares with USDAΆs forecast earlier this month for the worldΆs largest cotton producer of 26.5 million 480-pound bales, up fractionally from its estimate for 2015-16 of 26.4 million bales.
IndiaΆs cotton area is expected to decline more than 8% from last season, according to USDA, but higher yields are projected to keep production near the 2015-16 output.
Futures open interest declined 1,900 lots Wednesday to 251,455, with DecemberΆs down 2,664 lots to 163,196 and MarchΆs up 514 lots to 54,650. Certificated stocks were unchanged at 32,084 bales. Awaiting review were 450 bales at Dallas-Fort Worth.
