Cotton futures finished lower last week after absorbing unexpectedly large U.S. export sales cancellations and a confusing welter of revisions in USDAΆs updated supply-demand estimates.

Benchmark December gave back 201 points of the prior weekΆs 785-point breakout gains, settling at 111.62 cents, near the middle of the recent elevated trading range between 109 and 115 cents. Its range for the week, established entirely in ThursdayΆs session, was 114.83 to 109.42 cents.

Analysts suspect some underlying support may have come from pent-up mill demand edging up for foreign growths. Merchants may have lifted some short hedges against long foreign-growth positions as sales were made.

Prices held relatively well after weekly data showing net U.S. all-cotton 2011-12 export sales cancellations of 170,600 running bales spurred new worries about demand. Gross upland sales were 74,600 running bales and cancellations were 246,000 bales, including 201,100 bales for China.

Commitments declined to 6.615 million running bales, about a million bales behind bookings a year ago but 57 percent of the new USDA forecast.

All-cotton shipments remained anemic at 64,800 running bales, likely restricted by availability issues. Shipments for the season totaled 643,500 running bales, 514,300 bales behind exports a year ago, and were about 9.7 percent of the commitments.

In cash trading, business-to-business sales dipped to 7,241 bales on The Seam from 8,368 bales the previous week. Prices eased 69 points to average 103.67 cents, reflecting a 49-point dip to 51.31 cents in premiums over loan redemption rates.

Grower-to-business sales slowed to only 268 bales from 1,809 bales on prices averaging 103 cents, up from 102.70 cents, and premiums of 50.62 cents, up from 49.13 cents.

On the crop scene, with the U.S. planted acres estimated up a whopping 995,000 from the indication a month ago to 14.72 million, USDA left its U.S. crop forecast basically flat at 16.56 million bales.

Acres-for-harvest rose by 180,000 to 9.85 million and abandonment climbed to a new record high of 33.1 percent. Abandonment jumped 810,000 acres to 4.87 million and projected yields fell to 807 pounds, 15 pounds below the five-year average and down five pounds from last year.

By regions, upland crop estimates dipped 70,000 bales in the Southeast to 5.191 million, increased 375,000 bales in the Mid-South to 4.8 million, fell 275,000 bales in the Southwest to 4.373 million and dipped 28,000 bales in the West to 1.455 million.

Lower U.S. supplies of 19.17 million bales, down 240,000 from the August estimate, and lower imports by China were mainly responsible for a 300,000-bale cut to 12 million in export prospects. Domestic mill use was unchanged at 3.8 million bales.

Ending stocks rose by 100,000 bales to 3.4 million, highest in three years. This is 21.5 percent of total market offtake, up from 20.5 percent projected last month and 14.2 percent last season.

The big changes globally were a 1.02-million-bale cut in beginning stocks to 43.97 million and a 750,000-bale reduction to 51.91 million in ending stocks. The world stocks-to-use ratio of 45.06 percent, down from 45.87 percent foreseen last month, is up from 38.4 percent in 2010-11.

World production increased 250,000 bales to a record 122.96 million, with ChinaΆs crop up a million bales to 34 million, and consumption was little changed on the month and up only marginally from last season to 115.22 million bales. The carryout is 18 percent above beginning stocks.

A lack of district crop estimates in Texas compounded myriad difficulties in evaluating the report.

The 44-year cooperative agreement between the Texas Department of Agriculture and the Texas field office of USDAΆs National Agricultural Statistics Service ended Aug. 31 after state funding was eliminated.

This eliminated, among other reports, several of the widely followed district crop estimates for cotton. The Texas field office hopes to maintain a few in-season crop district estimates.

This is contingent on staffing and on farmer participation rates in crop surveys. Response rates on reduced survey samples will determine which district estimates can be statistically established. District estimates to be continued for cotton include the June planted acres report and crop forecasts in August, October, December and January.

Huge questions have persisted concerning the outcome of the Texas crop, the top cotton state even in the face of historic drought, and deep uncertainty still lingers on the heels of USDAΆs new estimates. The USDA estimated the Texas upland crop at 4.2 million bales, down 300,000 bales from the August forecast and 3.64 million bales below last yearΆs output. Planted acres were revised up 450,000 on the month to 7.55 million, up 2 million acres from last year, while acres for harvest were boosted 200,000 to 3.2 million, down 2.15 million from last season.

This reflects abandonment of 4.35 million acres – more than the planted acres in any of the other three major multi-state cotton regions – and a new all-time high loss of 57.6 percent of the planted area.

Statewide yields fell less than many expected to 630 pounds from 635 pounds foreseen last month, 703 pounds last year and the five-year average of 711 pounds. Boll counts of 540 were the lowest of the last four years.

The lack of updated district estimates left a gaping void in an area, the Texas High Plains, which last year produced 30.3 percent of the U.S. upland crop and turned out more cotton than any of the multi-state regions except of course the Southwest.

The August forecast for the High Plains of 2.57 million bales was thought by some industry people to have overstated the drought-stressed potential by as much as million bales. Estimates by some industry sources have ranged from about 1.5 million to 1.75 million bales.

Led by 2.5 million bales in Georgia, the No. 2 cotton state, the six states in the Southeast are expected to produce the nationΆs largest regional crop, a first since the 1934 season.