Modules accumulated in the Southeast. Few gins finished in the North Delta. Yields remained above expectations in the Texas Plains. U.S. classing totaled 5.103 million running bales.
Cotton futures settled near session lows Monday as expectations for a resumption of sales from ChinaΆs reserve stocks continued to weigh on sentiment.
Most-active March closed off 49 points to 77.71 cents, trading within a 66-point span from 77.63 to 78.29 cents to complete an inside-range day for the second straight session. December closed off 75 points at 76.37 cents, its lowest finish since Nov. 5, trading from 77.24 to 76.30 cents.
Traders continued to await information on such issues as price and quantity that would be involved in Chinese stockpile sales.
Volume slowed to an estimated 17,000 lots from 20,443 lots the previous session when spreads totaled 11,040 lots or 54% and EFP 50 lots. Options volume totaled 2,154 calls and 1,320 puts.
Modules accumulated on gin yards and ginning expanded throughout the Southeast during the week ended Thursday, according to a weekly review by the cotton division of USDAΆs Agricultural Marketing Service.
Mostly clear conditions allowed harvest activity to advance rapidly in Alabama and Georgia. Scattered rainfall delayed fieldwork in some areas of North Alabama at midweek.
Producers continued to report good yields of 1,000 to 1,200 pounds per acre, but some expected lower yields to reflect unfavorable growing conditions once harvesting begins in later-planted fields.
Harvesting was in full swing in the Carolinas and Virginia, while a lot of late-maturing bolls hadnΆt cracked open in the Florida Panhandle. Yields were highly variable, reported from 400 to 1,100 pounds.
The harvest made good progress in the North Delta. Ginning continued without interruption. A few gins had finished for the season. Growers reported yields of more than 3-1/2 bales per acre in a few cases.
An arctic cold front dropped temperatures into the teens and 20s on the Texas High Plains, bringing the seasonΆs first hard freeze to some southern areas. Yields remained above expectations, ranging mostly from two to four bales per irrigated acre.
Fog and drizzle temporarily slowed the harvest, which neared the halfway mark. Most gin yards were loaded with modules. Gins off the Caprock werenΆt as far along. Several experimental stripper harvesters turning out round modules were in use.
Light rainfall stalled field activities in the southern Rolling Plains. Yield reports ranged around a bale to 1-1/2 bales.
Warehouses were busy receiving and shipping cotton in the Desert Southwest. Average to below-average yields were reported for most of New Mexico and the El Paso area. A few producers at Deming, N.M., reported yields of four bales per acre off drip-irrigated fields.
Unseasonably warm, dry conditions prevailed in the San Joaquin Valley. Shredding of stalks continued. Ginning was nearly completed.
U.S. all-cotton classing of 1.349 million running bales brought the total for the season to 5.103 million, down from 9.08 million graded through the corresponding period last season.
Upland classing totaled 1.281 million bales for the week and 4.867 million for the season. Cotton tenderable on futures contracts improved to 64.7% and 61.6%, respectively.
Futures open interest fell 4,130 lots Friday to 165,622, with DecemberΆs down 4,579 lots to 17,973 and MarchΆs up 522 lots to 110,209. First notice day for December is Friday.
Certificated stocks grew 9,438 bales to 202,465. There were 9,443 newly certified bales, five bales decertified and 50,704 bales awaiting review.
World values as measured by the Cotlook A Index gained 80 points Monday morning to 84.70 cents. The premium to FridayΆs March settlement widened six points to 6.50 cents.
