March gained 3.2% for the month. U.S. WTI soared nearly 10%. Cotton producers rushed harvest on the Texas Plains ahead of wet, wintry weather. Classing receipts hit seasonΆs peak. Slower export sales expected.
Cotton futures bounced from overnight lows to close mostly modestly higher Wednesday as benchmark March ended with a gain for the month of 221 points or 3.2%.
March settled up 28 points to 71.58 cents, in the upper quarter of its 110-point range from down 70 points at 70.60 cents to up 40 points at 71.70 cents.
Maturing December eked out an eight-point gain to close at 72.46 cents, up 260 points or 5.2% for the month, while December 2017 gained 23 points to settle at 69.90 cents.
U.S. West Texas Intermediate crude traded up 9.8% to $49.67 heading into the cotton close on news that some of the worldΆs largest producers agreed to curb production for the first time since 2008 in a bid to support prices.
Volume increased to an estimated 19,092 lots from 16,747 lots the previous session when spreads accounted for 4,093 lots or 24%, EFP 43 lots and EFS 17 lots. Options volume totaled 4,389 calls and 1,437 puts.
Producers rushed to harvest as much cotton remaining on the stalk as possible ahead of a wintry mix of rain, sleet and snow expected to move into the Texas High and Rolling Plains Friday and Saturday.
Chances for precipitation in the Lubbock area are rated for rain at 30% Friday, 60% Friday night and 60% for rain and snow Saturday, with mostly sunny skies expected to return on Sunday.
In the Amarillo area, chances for rain and snow are 40% Friday, 60% Friday night and 50% Saturday. Forecasts for the Abilene area in the Rolling Plains put rain chances at 40% Friday, 70% Friday night and Saturday and lingering at 20% Sunday into Monday.
Most of the Texas cotton left on the stalk is in the High and Rolling Plains where the harvest was estimated at 50% and 30% completed, respectively, by Thanksgiving Day. The statewide harvest moved at a 15-point clip during the week ended Sunday, fastest of the season, and was 67% completed, behind the five-year average of 76%.
With gins throughout the Plains running around the clock, sample receipts at classing offices hit the highest of the season at one-day totals of 44,430 bales at Lubbock and 15,932 at Lamesa. For the week, Abilene received samples from 32,032 bales of West Texas cotton.
Classing of Plains cotton for the season as of Nov. 24 totaled 1.718 million running bales, including 1,091,725 at Lubbock, 484,225 at Lamesa and 142,497 at Abilene. Cotton stored in modules dotted fields and accumulated on gin yards.
Color grades for the season at Lubbock totaled 89.6% of 31 (middling) and higher, with 71.1% of 21 and higher and 92.4% of 41 and better. Light spots made up 6.8% and spots 0.7%. Leaf grades averaged 2.42, staple lengths 36.59, mike 4.22, strength 30.46 and uniformity 81.06. Bark totaled 9%.
Meanwhile, slower U.S. upland export sales are expected to be reported Thursday for the week ended Nov. 24 from the prior weekΆs 254,800 RB, which topped expectations and likely included some sales made at the recent Sourcing Summit.
Sales have been running well ahead of the pace needed to match USDAΆs export forecast but shipments have lagged widely. Upland sales the last four weeks have averaged 199,600 RB and upland shipments have averaged 123,004 RB.
Futures open interest edged up 10 lots Tuesday to 255,483, with DecemberΆs down 122 lots to 991, MarchΆs down 150 lots to 184,074 and MayΆs up 99 lots to 37,702. Cert stocks dropped 172 bales to 52,493. There were 180 newly certified bales and 352 bales decertified.
