Rain and possibly snow forecast for Texas Plains later this week. U.S. upland classing slowed to 1.008 million RB last week, 70.9% of which was tenderable cotton. Upland cotton under loan rose to 2.918 million RB.
Cotton futures finished higher Monday, with benchmark March rallying off the overnight low to settle above the previous-session high.
March closed up 77 points to 72.02 cents, in the upper quarter of its 154-point range from down 49 points at 70.76 cents to up 105 points at 72.30 cents. It settled right back above its nine-day moving average after a one-day stand below it.
A weaker U.S. dollar index, which traded down 0.190 to 101.350 around the time of the cotton close, may have contributed to the fiber crop rally. MarchΆs higher close was its first in six sessions.
Maturing December closed up 62 points to 73.27 cents, while December 2017 settled up 20 points to 70.42 cents.
Still-light volume increased to an estimated 15,909 lots from a thin 12,313 lots the previous shortened session when spreads accounted for 4,412 lots or 36%. Options volume totaled 1,341 calls and 820 puts.
Chances for rain and snow showers forecast for Friday and Saturday on the Texas High and Rolling Plains may have offered support on concerns about the effects on the crop in the nationΆs largest cotton patch.
This region has the bulk of the U.S. cotton remaining on the stalk. Winds of 25 to 30 miles per hour with gusts to 40 mph were expected to whip up patchy blowing dust this afternoon in the Lubbock area.
Breezy conditions then are expected again Tuesday and mostly sunny to sunny skies through Thursday, with a slight chance of showers on Friday and the highest chances for rain and snow Friday night and Saturday.
Snow accumulations, if any, are expected at this time to remain below an inch in the northern High Plains, forecasters say. Heavy rainfall and thunderstorms will be possible in areas of the rolling Plains.
U.S. upland cotton classing slowed last week to 1.008 million running bales from 1.187 million RB the previous week as the count for the season rose to 8.277 million RB, the latest USDA weekly report showed.
The USDA has classed 55% of the upland crop estimated on the basis of conditions around Nov. 1. Tenderable cotton accounted for 70.9% of the weekΆs classing, compared with 71.6% the week before.
Cotton meeting tenderable quality requirements totaled 71.3% for the season, up from 57% last year but down from 72.8% two years ago.
The 2015 upland crop yielded a final 57.3% of tenderable cotton, second lowest in the last 20 years. The lowest was 52% in 2002. Tenderable cotton in Texas last year was 64%.
Classing of Pima cotton last week slowed to 41,746 RB from 56,008 the prior week and brought the seasonΆs extra-long staple total to 233,504 RB. The seasonΆs all-cotton total of 8.510 million RB was up 23% from 6.929 million RB classed as of Nov. 26 last season.
Separately, U.S. upland loans outstanding on 2016-crop cotton rose 496,409 RB during the week ended last Monday to 2.918 million RB, USDA figures showed. Entries were 737,349 RB and repayments were made on 240,940 RB.
Upland cotton under loan included 316,934 RB of Form A issued to individual growers and 2,601,448 RB of Form G issued to marketing cooperatives or loan servicing agents.
Futures open interest increased 658 lots Friday to 253,666, with DecemberΆs down 157 lots to 1,192, MarchΆs up 355 lots to 182,854 and MayΆs up 359 lots to 37,353. Cert stocks declined 175 bales to 51,928.
