Higher exports and lower ending stocks expected in U.S. 2016-17 supply-demand estimates. Upland growers contracted 2% of expected 2017 acreage. Upland outstanding loans fell to 3.15 million running bales.

Cotton futures finished strongly ahead Monday amid expectations for friendly old-crop supply-demand estimates and on oversold technical readings.

Spot May surged from just below the prior-session low to settle up 169 points at 75.15 cents, near the high of its 194-point range from down 11 points at 73.35 to up 183 points at 75.29 cents. It closed above highs of the prior two sessions at its highest finish since last Monday.

July, which is expected to overtake May in open interest on Tuesday, settled up 134 points to 76.81 cents, trading within a 161-point range from 75.35 to 76.96 cents. December closed up 95 points to 73.24 cents, above FridayΆs high after opening flat overnight and trading up 101 points to 73.30 cents.

Volume slipped to an estimated 59,930 lots from a whopping 73,616 lots the previous session when spreads accounted for 51,739 lots or 70%, EFP 27 lots and EFS 44 lots. Options volume dipped to 7,895 lots — (4,730 calls and 3,165 puts) from 9,551 lots (5,398 calls and 4,153 puts).

Some traders and analysts expect USDA to increase its 2016-17 export estimate around 500,000 bales from the current 13.2 million bales in its supply-demand report on Tuesday and to decrease ending stocks by a corresponding amount. However, some question whether domestic mill use ultimately can reach USDAΆs projected 3.3 million bales.

The USDA isnΆt expected to issue its first “official” 2017-18 U.S. and world balance sheet forecasts until the May 10 report. Final U.S. 2016 production, acreage and yields also will be reported next month along with annual ginning data.

World estimates for 2016-17 generally are expected to show a modest increase in production and a slight decrease in consumption.

Meanwhile, U.S. upland growers had booked about 2% of their expected 2017 acreage by the end of March, compared with 1% a year earlier, according to informal surveys by USDAΆs Agricultural Marketing Service.

Contracting has been most active in the Mid-South where about 9% of the crop had been booked, compared with 4% through the corresponding period last year.

In other regions, contracting totaled 3% in the Southeast, up from 1% in 2016; none in the Southwest, down from 1% last year; and 2% in the West, against none at the end of March 2016.

These estimates donΆt include cotton consigned to marketing organizations but do include cotton contracted with them.

Separately, U.S. outstanding loans on 2016-crop upland cotton declined 355,615 running bales to 3.15 million during the week ended last Monday, according to the latest USDA figures.

Repayments were made on 361,711 RB and entries were 6,096 RB. Upland cotton under loan included 279,452 RB of Form A issued to individual growers and 2.87 million RB issued to marketing cooperatives or loan servicing agents.

A heavy volume of Commodity Credit Corp. loan equities was reported to have changed hands last week in West Texas for 19 to 20.25 cents.

Futures open interest fell 9,220 lots to 259,319, with MayΆs down 18,691 lots to 83,691, JulyΆs up 8,434 lots to 83,614 and DecemberΆs up 1,266 lots to 81,006.

Certified stocks declined 1,840 bales to 327,782. There were 270 newly certified bales and 2,110 bales decertified. Awaiting review were 2,100 bales at Galveston.