Mills priced 4,388 on-call lots in July last week to reduce their unfixed position there by 24.6%. U.S. outstanding loans on upland cotton fell 93,423 bales to 575,227.
Cotton futures finished with a sharp gain in July to snap a streak of five consecutive weekly losses Friday, while December remained within the prior-day range and closed a few ticks in the red.
July settled at an eight-session high close at 86.98 cents, up 136 points and near the high of its 168-point range from down 20 points at 85.42 to up 148 points to 87.10 cents. This was its highest settlement since June 3.
December eased eight points to close at 77.75 cents, in the upper quarter of its tight 67-point range from up seven points at 77.90 to down 60 points at 77.23 cents. December was the only loser.
For the week, July gained 220 points and December dipped 25 points. The Goldman index fund roll from the front contract ended Thursday.
Volume slowed to an estimated 28,300 lots from 48,134 lots the previous session when spreads totaled 31,387 lots or 65%, EFS 295 lots and EFP 20 lots. Options volume totaled 3,026 calls and 5,936 puts.
Mills priced 4,388 on-call lots in July last week, reducing their unfixed position there by 24.6% to 13,414 lots, according to data reported by the Commodity Futures Trading Commission after the close Thursday.
Producers priced 211 July lots to trim their open position there to 1,127 lots. The net call difference declined 4,177 lots to 12,287 lots (1.229 million bales), which was 15.26% of JulyΆs declining open interest, against 16.44% a week earlier.
With 11 trading sessions left at the time before first notice day for July deliveries, mills had 11.9 contracts to price for every one by producers, down from a ratio of 13.3:1 the week before but up from 2.83:1 a year ago.
In December, mills priced 706 lots and producers added 236 lots. This pared the unfixed mill position to 12,763 lots and upped the unpriced producer holdings to 19,122 lots. The net difference rose by 942 lots to 6,359 lots and amounted to 7.4% of DecemberΆs rising open interest.
Meanwhile, repayments reduced U.S. outstanding loans on upland cotton by 93,423 running bales to 575,227 during the week ended June 9, according to the latest USDA figures.
Loans outstanding included 49,974 bales of Form A issued to individual growers and 525,253 bales issued to marketing cooperatives or loan servicing agents. Repayments were made on 4,077 bales of Form A and 89,346 bales of Form G.
Futures open interest expanded 1,619 lots Thursday to 184,517, with JulyΆs down 8,600 lots to 50,865 and DecemberΆs up 9,474 lots to 114,891. Cert stocks grew 1,642 bales to 419,562. There were 3,463 newly certified bales, 1,821 bales decertified and 17,362 bales awaiting review.
World values as measured by the Cotlook A Index were flat at 90.45 cents Friday morning. The premium to ThursdayΆs July futures settlement narrowed 11 points to 4.83 cents.
Forward A Index values for 2014-15 gained 60 points to 84.95 cents, narrowing the discount to the 2013-14 index by 60 points to 5.50 cents and the premium to ThursdayΆs December futures close by four points to 7.12 cents.
