Big buildup of fund-spec net longs may have encouraged some profit-taking. U.S. upland classing reached 14.295 million RB, of which 73.3% met tenderable requirements.

Cotton futures slipped from new contract highs in 2017-18 marketing year contracts to finish an abbreviated session lower Tuesday.

Spot March settled down 44 points to 77.43 cents, in the lower third of its 99-point range from up 29 points at 78.16 to down 70 points at 77.17 cents. May closed down 52 points at 77.52 cents, trading within a 91-point range from 78.33 to 77.42 cents, and July also closed down 52 points, trading within an 84-point span from 78.50 to 77.66 cents.

The other contracts finished down nine to 23 points, with December 2018 off the most among those at 73.77 cents after matching Friday’s contract high at 74 cents.

A big buildup in fund-speculator net longs in the latest traders-commitments data from the Commodity Futures Trading Commission, as reported earlier, may have encouraged some profit-taking amid overbought readings.

Volume fell to 12,599 lots from 26,488 lots the prior session when spreads accounted for 10,762 lots or 41% and EFP 138 lots. Options volume dropped to 3,694 lots (1,938 calls and 1,756 puts) from 9,298 lots (4,842 calls and 4,456 puts).

U.S. upland cotton classing slowed to 1.128 million running bales from 424 gins during the week ended Thursday to bring the total for the season to 14.295 million RB, roughly 71% of the USDA RB crop forecast.

Tenderable cotton dipped to 65% for the week and 73.3% for the season from the prior week’s 67% and 74%, respectively, from 459 gins. For the season, upland samples have been submitted by 530 gins for grading.

Classing of 50,593 RB of Pima for the week brought the extra-long staple total for the season to 437,388 RB and the all-cotton count to 14.733 million RB, also about 71% of the 2017 upland-Pima crop estimate.

Harvesting was around 90% completed in the northern and southern Texas High Plains and about 50% in the southern Rolling Plains, according to USDA’s Agricultural Marketing Service. Gins operated two shifts where employees were available.

Producers expressed optimism for next season at annual meetings in the Rio Grande Valley. A few more gins in the Blacklands processed the final module of the season but others gins will operate into January.

All gins in Kansas operated night shifts and harvesting and ginning made good progress. The Oklahoma harvest was reported 75% finished, depending upon location.

A few gins in Alabama and Georgia completed operations for the season and a few others planned on going to gin days after Christmas. Most gins across the lower Southeast continued to operate at capacity as they processed backlogs of modules.

Widespread storms brought 1 to 3 inches of precipitation to much of North Carolina and Central South Carolina. Despite short-term benefits, additional wet weather will be needed to improve dry conditions in the Upper Southeast. Large areas in Virginia have received only 25% or less of average precipitation the last three months.

Beneficial moisture also fell in portions of the North Delta, but severe to extreme drought persisted throughout much of Arkansas. Much of West Tennessee and the Bootheel of Missouri remained abnormally dry. In the South Delta, moderate to severe drought prevailed in North Louisiana and Mississippi. Ginning of modules continued across the Delta.

Warehouses were busy shipping and receiving cotton in the Desert Southwest. Industry representatives estimated that approximately 55% to 65% of the crop was ginned in Arizona, New Mexico and El Paso. Most San Joaquin Valley gins planned to take off three days for Christmas.

Futures open interest expanded 1,555 lots to 273,886 on Friday, with March’s up 804 lots to 173,309 and May’s up 194 lots to 50,155. Certified stocks declined 27 bales to 47,601, the first change since Dec. 4.