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DTN Closing Cotton            11/24 13:32

   Cotton Finishes on New High Closes for Move

   Strong U.S. weekly export sales lifted 2017-18 commitments to 70% of the 
USDA forecast, while shipments lagged 458,000 RB behind a year ago. Seed cotton 
payment for Gujarat growers in India reviewed.

By Duane Howell
DTN Cotton Correspondent

   Cotton futures finished a shortened trading session in the green Friday, 
with March pushing to a new intraday high since Sept. 11 and closing on a new 
high settlement for the move. 

   March settled up 79 points to 71.93 cents, its highest close since Sept. 8 
and near the high of its 101-point range from down seven points at 71.07 to up 
94 points at 72.08 cents. It has made six higher lows and higher highs in a row 
and gained 258 points for the week. 

   Maturing December led the advance, jumping 149 points to close at 72.23 
cents, just off the high of its 174-point range from 70.60-to-72.34 cents. It 
traded within the prior-day range for the second straight session and gained 
245 points for the week. 

   Supportive U.S. weekly export sales, a lack of December delivery notices on 
first notice day and weakness in U.S. dollar index futures contributed to the 
advance. 

   Volume was estimated electronically at 23,960 lots, down from 44,058 lots 
from Wednesday's full session when spreads accounted for 18,173 lots or 41%, 
EFP 44 lots and EFS 24 lots. 

   Strong all-cotton export sales of 374,500 running bales during the week 
ended Nov. 16 for shipment this season, though down from the prior week's 
marketing year high of 524,800 RB, boosted 2017-18 commitments to 9.808 million 
RB. 

   Commitments -- outstanding sales of 7.655 million RB plus shipments -- 
reached 70% of the USDA export projection, compared with 49% of final 2016-17 
exports through the corresponding period last season. The lead of commitments 
over year-ago cumulative sales widened 115,000 RB-to-2.763 million RB. 

   All-cotton shipments remained slow at 97,100 RB, down from 100,600 RB the 
prior week, with upland exports falling to a marketing year low of 85,600 RB 
and Pima or extra-long staple exports rising to a crop year high of 11,500 RB. 

   Shipments of upland and Pima combined of 2.154 million RB for the season 
lagged 458,000 RB or 18% behind year-ago exports. Shipments stood at 15% of the 
USDA forecast, compared with 18% of final 2016-17 exports a year ago. 

   Sales for shipment next season of 43,100 RB hiked the total for both crop 
years to 417,600 RB and raised 2018-19 commitments to 960,400 RB, up 465,700 RB 
or 94% from forward bookings a year ago. 

   On the international scene, a U.S. agricultural attach report noted that 
the state of Gujarat in India has announced a bonus of about 3.5 cents per 
pound to be paid to farmers for seed cotton. 

   The Gujarat payment, announced Oct. 23, is for farmers that sell their seed 
cotton to state procurement agencies and is in addition to the minimum support 
price announced by the government of India. 

   The bonus amount is the same for all cotton varieties grown in the state. 
Combined with the MSP announced for the most popular variety, Shankar 6, the 
bonus means farmers in Gujarat will receive 33.3 cents per pound for their seed 
cotton, the Foreign Agricultural Report said. 

   The FAS summary is "based on a cursory review" and thus shouldn't be viewed 
as a definitive reading of the announcement or of its implications for U.S. 
agricultural export trade interests, the USDA agency said. 

   Futures open interest expanded 6,418 lots on Wednesday's market rebound, 
with December's down 2,221 lots to 677 and March's up 5,472 lots to 159,674. 
Certified stocks remained at 47,951 bales, unchanged since last Friday.


(BAS)

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