Upland classing slowed to 112,203 bales. Winter storm closed gins and warehouses in the Southeast. Ginning continued in parts of the Southwest and West. Planting began around Yuma. Fallowed land may increase in California.
Cotton futures closed at a four-session low finish Monday amid steep losses on Wall Street and quiet conditions in Asia where China and other countries are celebrating the Lunar New Year.
Spot March closed down 82 points at 85.01 cents, in the lower quarter of its 113-point range from up six points at 85.89 to down 107 points at 84.76 cents. March options expire Friday.
The May contract settled down 76 points to 85.57 cents, July fell 78 points to 85.16 cents and December eased four points to 76.36 cents.
Volume totaled an estimated 27,600 lots, about the same as the 27,570 lots the previous session when spreads totaled 19,105 lots or 69% and EFP 696 lots. Options volume totaled 3,618 calls and 3,251 puts.
U.S. upland cotton classing slowed to 112,203 running bales during the week ended Thursday from 162,223 bales the previous week, upping the total for the season to 11.745 million RB.
Cotton tenderable on futures totaled 49% for the week and 61.6% for the season, against 61% of the 2012 crop and 70.2% of the 2011 production.
A winter storm created havoc in the Southeast during the reporting week, stranding tens of thousands of motorists and forcing the closure of airports, schools and business, including gins and warehouses.
The USDA classing offices in Macon, Ga., and Florence, S.C., were closed because of inclement weather, the cotton division of the Agricultural Marketing Service said in a weekly review.
Winter storm problems also hit areas of the Delta, resulting in the including the closure of airports, roads, schools and businesses in parts of Louisiana and Mississippi. Several schools closed in the North Delta but roads remained open.
Sleet and freezing rain brought light amounts of precipitation to the Rio Grande Valley in Texas, but the Corpus Christi area failed to receive any moisture. The Blackland Prairies got beneficial precipitation.
Ginning continued in Kansas despite winter weather, while five gins continued operations in Oklahoma but expected to be done by the weekend.
About 15 gins also continued to operate in the West Texas Plains, and some of those also planned to complete their seasons by the weekend.
Above-normal temperatures persisted in Arizona and producers began planting cotton around Yuma early in the reporting week. Ginning continued in Central Arizona.
Record high temperatures were recorded in many areas of CaliforniaΆs Central Valley. The first precipitation for January late in the period brought amounts ranging from a trace to a third of an inch.
Another dry winter in California will result in more unplanted land. Roughly 200,000 acres could be fallowed because of a lack of irrigation water. Most producers likely will wait as long as possible before finalizing planting intentions. Some already have decided to plant tomatoes in lieu of cotton.
Futures open interest fell 3,801 lots Friday to 179,072, with MarchΆs down 6,136 lots to 89,819 and MayΆs up 1,971 lots to 46,459. Cert stocks grew 10,055 bales to 168,266. Awaiting review were 4,451 bales.
World values as measured by the Cotlook A Index dipped 10 points Monday morning to 92.65 cents. The premium to FridayΆs December futures close widened 10 points to 6.82 cents.
