Lag of U.S. export commitments for 2015-16 widened to 3.5 million RB or to 37%. Weekly AWP little changed. Cotton Council hailed announcement of the implementation of commodity marketing certificates.

Cotton futures plunged to a new low for the move on huge volume Thursday, even as U.S. dollar index futures took a new dive and weekly export sales topped expectations at a nine-week high.

• Spot March closed down 171 points to 60.23 cents, its lowest finish since Oct. 2 and the lower quarter of its 190-point range from down five points at 61.89 to down 195 points at 59.99 cents. It fell to within 54 points of its contract low after an attempt to trim earlier losses failed on the heels of the weekly export sales report.
• May also shed 171 points to close at 60.70 cents, July lost 150 points to 61.27 cents and December dropped 136 points to 61.26 cents.
• Volume rose to an estimated 59,137 lots from 44,171 lots the previous session when spreads totaled 44,171 lots or 64%, EFP 168 lots and EFS 65 lots. Options volume totaled 6,139 calls and 3,165 puts.

Net all-cotton export sales for shipment this season rose to 262,400 running bales during the week ended Jan. 28, up from 158,600 RB the prior week, to hike 2015-16 commitments to 6.09 million RB.

The lag behind commitments a year ago still widened 169,000 RB to 3.503 million RB or to 37%. Commitments reached 63% of the USDA export forecast, compared with 88% of final shipments a year ago.

All-cotton shipments climbed to 244,700 RB, a marketing year high and up from 162,800 RB the previous week. This brought exports for the season to 3.076 million RB.

Shipments lagged year-ago exports by 484,000 RB or by 14% and were 32% of the USDA forecast. A year ago, shipments were 33% of final 2014-15 exports.

To achieve the USDA projection, shipments need to average roughly 254,800 RB a week, while weekly sales averaging 138,900 RB would match the export forecast.

Net sales for shipment next season of 6,800 RB, down from 10,300 RB the week before, raised 2016-17 commitments to 834,900 RB. The lead over forward bookings a year ago widened to 226,700 RB.

On the competitive pricing scene, the average of the five-lowest-quoted world growths for the Far East eased off four points to 66.60 cents during the week ended Thursday, according to USDA, while the lowest-priced U.S. cotton softened five points to 70.25 cents.

The U.S. premium thus was little changed, slipping a single point to 3.65 cents. Taking into account transportation and quality differentials, the adjusted world price for the program week ending next Thursday is figured at 46.85 cents.

The resulting marketing loan gain is 5.15 cents. The fine count adjustment for 2015-crop qualities better than 31-3-35 (color grade middling, leaf 3, staple 1-3/32nds inches) will be eight points.

Meanwhile, cotton people hailed a USDA announcement of the implementation and availability of commodity marketing certificates as part of the marketing loan program. The certificates will be accessible for all loan-eligible commodities.

The National Cotton Council issued a statement commending farm lawmakers for including a provision in the fiscal 2016 agriculture appropriations bill giving USDA the authority to again make available marketing certificates for the redemption of loan commodities.

The council also thanked Secretary of Agriculture Tom Vilsack and his team at USDA for their efforts since late December to develop the regulations and provisions to implement the provision.

“The cotton industry is encouraged to see this functionality and effectiveness restored” to the marketing loan program, the NCC said.

This came a day after the council and others expressed disappointment that Vilsack had said he does not have the authority to designate cottonseed as an “other oilseed” under the 2014 farm bill.

Futures open interest increased 2,369 lots Wednesday to 200,001, with March’s down 3,304 lots to 99,356 and MayΆs up 3,725 lots to 52,959. Cert stocks declined 402 bales to 26,122.