By admin       2018-05-18

Reports of crop problems in China contributed to advance. U.S. all-cotton weekly export sales for this season and next at 384,700 RB viewed as healthy for a week in which both old-crop and new-crop prices hit new contract highs. Exports edged ahead of a year ago for the first time. Cotton futures settled moderately higher Thursday, with spot July finishing on its third gain in a row and new-crop deliveries climbing to new contract highs. July gained 68 points to close at 85.03 cents, a six-session high finish and in the upper half of its 164-point range from down 30 points at 84.05 cents to up 134 points at 85.69 cents. December closed up 76 points to 81.45 cents, in the upper quarter of its 143-point range from 80.37 to 81.80 cents. It took out its prior contract high of 81.50 on May 7 and settled on a new contract high close. Reports of crop problems in the Xinjiang region of China, the country’s largest producing area, contributed to the drive to new highs in 2018-19 marketing year contracts. China’s internal cotton prices have surged on the news. Volume rose to an estimated 39,200 lots from 34,677 lots the prior session. Options volume increased to 14,167 lots (calls and puts) from 12,764 lots (10,095 calls and 2,660 puts). Net U.S. all-cotton weekly export sales for shipment this season and next of 384,700 running bales, though down from 425,300 RB the previous week, were considered healthy for a period in which both old-crop and new-crop prices posted new contract highs. Sales of 155,400 RB for this season, down from 196,400 RB, boosted 2017-18 commitments to 16.782 million RB, widening the lead over year-ago bookings 28,000 RB to 2.523 million RB or 18%. Commitments, bolstered by ongoing demand for lower qualities from the Southwest, have topped the USDA export forecast by 12%. A year ago, commitments were 98% of final 2016-17 exports. All-cotton shipments dipped to 422,700 RB from 520,800 RB but remained well above the pace needed to achieve the USDA forecast. Shipments for the season climbed to 11.093 million RB, edging for the first time ahead of exports a year ago when shipments were 11.075 million RB. Exports reached 74% of the USDA estimate, compared with 76% of final exports at the corresponding point last season. Shipments averaging roughly 336,900 RB per week for the 11-plus weeks remaining in the season would achieve the USDA forecast. New-crop sales of 229,300 RB lifted 2018-19 commitments to 4.142 million RB, 1.467 million RB or 55% more than forward bookings a year ago. Commitments for 2018-19 stand at 28% of the USDA forecast, compared with year-ago forward sales at 18% of the current 2017-18 estimate. Certified stocks grew 213 bales to 79,443 on Wednesday, according to the daily ICE report. Open interest increased 3,510 lots to 286,454, with July’s down 222 lots to 130,753 and December’s up 2,200 lots to 121,015.

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