Global stock markets reeled. U.S. upland cotton classing slowed sharply last week, with the percentage of tenderable qualities also falling. Upland cotton under loan rose to 3.678 million running bales.
U.S. cotton futures fell to the lowest close in more than five weeks Monday after weak Chinese economic data triggered a global stock market selloff and reignited fears of a world slowdown.
- Spot March settled down 67 points to 62.61 cents, near the low of its 104-point range from up 27 points at 63.55 to down 77 points at 62.51 cents. It closed at its lowest finish since Nov. 24 and printed the lowest intraday price since Nov. 30.
- May closed down 64 points to 63.47 cents, while December dropped 42 points to settle at 64.30 cents.
- The Dow Jones Industrial Average was down more than 400 points ahead of its close and on track for its worst start to a year since 1932.
- Volume quickened to an estimated 30,766 lots from 18,666 lots the previous session when spreads accounted for 5,209 lots or 28% and EFS 42 lots. Options volume totaled 6,333 calls and 2,134 puts.
On the U.S. crop scene, upland cotton classing slowed sharply to 190,578 running bales during the week ended Thursday from 773,902 RB the previous week, according to USDA figures released Monday.
A snowstorm and blizzard in the West Texas Plains, where the most cotton remained to be ginned, disrupted sample hauling to classing offices for days. Holiday influences also affected receipts.
Classing for the season reached 10.489 million RB, down 22% from 13.466 million RB graded a year ago. Pima classing declined to 13,951 RB from the prior week’s 19,051 RB, bringing the extra-long staple total for the season to 363,302 RB, down from the year-ago count of 480,722 RB.
Cotton tenderable on U.S. futures contracts fell to the lowest weekly reading for the season to 45.6% from 57.3% the previous week, with the percentage for the 2015 crop dipping to 56% from 70.6% a year ago.
About 86% of the estimated U.S. upland production had been classed, compared with about 88% of the final 2014-15 output graded through the corresponding period last season.
All-cotton classing of 10.853 million RB trailed the year-ago upland-Pima total of 13.947 million RB.
Separately, U.S. outstanding upland loans increased 335,992 RB during the week ended last Monday, lifting the 2015-crop upland cotton under loan to 3.678 million RB, USDA figures showed.
Entries were 358,732 RB and repayments were made on 22,740 RB. Upland loans outstanding included 301,880 RB of Form A issued to individual growers and 3.376 million of Form G issued to marketing cooperatives or loan servicing agents.
Futures open interest edged up 242 lots Thursday to 185,394, with MarchΆs down 934 lots to 123,846 and MayΆs up 975 lots to 32,726. Cert stocks were unchanged at 64,340 bales.
