Cotton Settles Highest Since Nov. 2

Volume jumped. Rains forecast for the Texas Plains and Southeast and Delta. U.S. upland classing dipped amid lint quality concerns. Hardest hit areas in the Southeast may abandon remaining cotton. Harvest progress varied widely on the Texas Plains.

U.S. cotton futures closed higher on heavy volume Monday as concerns mounted about lint quality amid forecasts for rains in wide growing areas.

Most-active March settled up 62 points to 62.61 cents, its highest close since Nov. 2. It finished smack in the middle of its 188-point range from down 32 points at 61.67 to up 156 points at 63.55 cents.

December edged up six points to close at 61.74 cents, in the lower third of its 159-point range from down 42 points at 61.26 to up 117 points at 62.85 cents.

Gains in global equity markets amid perceptions of limited world economic impact from FridayΆs terrorist attacks in Paris were considered supportive. U.S. dollar strength and sluggish demand prospects helped to cap the cotton advance.

Volume jumped to an estimated 62,800 lots from 43,743 lots the prior session when spreads accounted for 24,136 lots or 55%, EFP 301 lots and EFS 155 lots. Options volume totaled 3,288 calls and 3,647 puts.

Support also stemmed from rains moving from western areas of the belt which were expected later Monday on the Texas Plains and Tuesday and Wednesday in the Delta and Southeast. Chances for showers and thunderstorms were rated at 30% in the Lubbock area.

Scattered to numerous severe thunderstorms were termed possible in the late afternoon and evening in the extreme southern Texas Panhandle, the South Plains and Rolling Plains. Isolated severe storms also were reported possible west of Lubbock.

Sustained winds of 30 miles per hour were forecast for northwestern areas Monday and blowing dust may be seen on Tuesday as a cold front moves through the region. Spotty, light showers Sunday left up to 0.34 of an inch at Seminole. After Monday, no rain is foreseen into early next week.

Rainfall in the Southeast is expected to range mostly from an inch to 2 inches, with local totals ranging to 3 inches. Improving conditions are expected later in the week.

Meanwhile, U.S. upland classing dipped to 966,530 running bales during the week ended Thursday from 982,017 RB the prior week, according to figures released Friday by USDAΆs Agricultural Marketing Service.

This brought the seasonΆs total to 4,865,905 RB, down 24% from 6,369,229 RB graded a year ago. Cotton tenderable on U.S. futures accounted for 57.6% for the week and 58.1% for the season, compared with 73.4% and 73.6%, respectively, a year ago.

Pima classing of 35,019 RB for the week boosted the extra-long staple total for the season to 94,720 RB, down from a total of 136,336 RB of ELS cotton graded a year ago.

Outside activities remained slow from the Gulf to Atlantic coasts during the period owing to prolonged wet conditions, AMS reported.

Up to an inch of rain fell in most of Alabama and Georgia and similar amounts were reported throughout the Carolinas and Virginia. Concerns about lint quality deterioration were foremost in producersΆ minds. Color 52 remained predominant at the Florence classing office.

Harvesting and ginning were at a standstill in parts of Georgia and most of South Carolina. Many gins had processed all the cotton on their yards and were idle because modules were inaccessible in muddy fields.

Producers in the hardest hit areas voiced concern that the inclement weather could result in abandonment of cotton remaining on the stalk.

In Texas, harvesting varied from just starting in the Panhandle to around 70% completed in counties around Lubbock and Lamesa. Harvesting advanced under sunny skies early in the period but was interrupted later when conditions became foggy and windy.

U.S. futures open interest fell 7,644 lots Friday to 184,225, with DecemberΆs down 11,353 to 33,371 and MarchΆs up 3,798 lots to 114,704. Exercised were 2,632 calls and 17,457 puts. Cert stocks grew 1,899 bales to 51,750. There were 2,045 newly certified bales, 146 decertified bales and 4,478 bales awaiting review.