U.S. all-cotton commitments reached nearly 103% of the USDA export estimate and shipments stand at 68%. Weekly upland exports were the third largest of the marketing year.
Cotton futures, continuing to trade within narrow ranges, slipped to a new 10-week low and finished near there Thursday.
Spot May settled down 36 points to 74.51 cents, trading within a 59-point span from up 20 points at 75.07 to down 39 points at 74.48 cents. It posted its lowest intraday print and lowest close since Jan. 25. The last trading day for May options is next Thursday.
July gave up 26 points to close at 76.40 cents, below the prior-day low and just off the low of its 41-point range from 76.79 to 76.38 cents. December eased 12 points to settle at 73.27 cents, confined within a 43-point inside-day range from 73.55 to 73.12 cents.
In the grains, corn closed down 1.1% in May and 0.8% in December, while soybeans finished off 0.3% in May and in November. May Chicago wheat shed 1.5% and May Kansas City wheat lost 1.2%.
Cotton volume climbed to an estimated 40,929 lots from 36,547 lots the prior day when spreads accounted for 32,161 lots or 63%, EFP 265 lots and EFS 29 lots. Options volume totaled 2,029 lots — 1,219 calls and 810 puts.
Net U.S. all-cotton export sales for shipment this season of 284,600 running bales during the week ended last Thursday, down from 402,400 RB the prior week, brought 2016-17 commitments to 13.138 million RB.
Upland sales of 270,000 RB, down 31% from the prior week and 16% from the four-week average, were within the range of trade estimates, some of which had been from 200,000 to 300,000 RB.
All-cotton commitments, including outstanding sales of 4.254 million RB plus shipments, top cumulative sales a year ago by 5.32 million RB or 68% and are almost 103% of the USDA export forecast. At the corresponding point last season, commitments were 88% of final 2015-16 exports.
Shipments of upland and Pima combined rose to 463,400 RB from 402,100 RB the previous week, with upland exports of 447,300 RB topping the four-week average by 9% and ranking as the third largest of the marketing year.
All-cotton exports of 8.729 million RB were 3.644 million RB or 72% ahead of shipments a year ago and were 68% of the USDA forecast. A year ago, shipments were 57% of final exports.
To achieve the current export estimate, shipments need to average roughly 239,700 RB over the 17 weeks remaining in the marketing year.
All-cotton sales for shipment next season of 121,000 RB, up from 85,200 RB the previous week, boosted 2017-18 commitments to 1.841 million RB. New-crop commitments widened the gap over forward bookings a year ago to 730,000 RB.
On the competitive-pricing scene, the average of the five lowest-priced world growths for the Far East dropped 62 points to 84.84 cents during the week ended Thursday, according to USDA figures, while the lowest-priced U.S. cotton landed there slipped 54 points to 85.45 cents.
The U.S. premium thus widened to 61 points. For the marketing week ending next Thursday, the adjusted world price, reflecting transportation and quality differentials, is figured to drop to 67.41 cents from 68.03 cents. This leaves the marketing loan gain at zero.
Futures open interest declined 6,385 lots Wednesday to 271,090, with MayΆs down 9,671 lots to 109,308, JulyΆs up 2,812 lots to 71,857 and DecemberΆs up 42 lots to 79,145. Cert stocks grew 627 bales to 329,209. Awaiting review were 1,388 bales at Galveston.
