Cotton Climbs to Highest Finish Since Aug. 21

Growing tightness of high quality cottons amid ongoing rains in the Texas Plains helped to lift the market. Hail reported in northern Plains. Some improvement expected in U.S. weekly export sales.

Cotton futures climbed to the highest intraday price in eight weeks and the highest close since Aug. 21 in quickened trading Wednesday.

Spot December settled up 45 points to 64.23 cents, just above the midpoint of its 101-point range from down 13 points at 63.65 to up 88 points at 64.66 cents. It posted the highest intraday price since Aug. 25 after opening overnight on the session low.

March closed up 39 points to 64.05 cents and December 2016 edged up 22 points to 64.10 cents.

Volume jumped to an estimated 30,100 lots from 13,706 lots the previous session when spreads accounted for 5,285 lots or 39%, EFS 107 lots and EFP 81 lots. Options volume totaled 4,155 calls and 10,542 puts.

Growing tightness of high quality cottons amid ongoing rains on open bolls in the key producing area of the Texas High Plains helped spot December to hold onto gains above 64 cents after three probes above that in the previous six sessions had failed.

A severe thunderstorm warning was issued early Wednesday afternoon for a northern Plains area including western Deaf Smith County. Winds gusting to 60 miles per hour and half-dollar-sized hail were reported.

Classing data for the early stages of the Plains harvest last week showed that 82.3% of the 20,138 bales graded at Lubbock for the season were color 31 (middling) and higher, with leaf grades averaging 3.29, staple lengths 35.06 and mikes 3.89. Averages also showed strength of 30.34 and uniformity of 80.15. Total bark was 16.9%.

Of 37,702 bales classed at the High Plains facility at Lamesa, 69.6% was color grade 31 and better, while leaf averaged 2.24, length 34.72, mike 4.46, strength 30.12 and uniformity 80.39. Staples 35 and longer totaled 54.4%. Total bark was 8.3%.

Cotton is at its highest inherent quality when the bolls first open. Standing alone, single rain events after that frequently arenΆt too harmful, depending upon intensity and duration and whether accompanied by wind or hail, but the cumulative effects of “weathering” mount over time.

Mostly sunny skies are expected to return to the Lubbock area on Friday, but a slight chance for showers and thunderstorms now is in the forecast for Tuesday.

Meanwhile, some improvement in U.S. weekly upland export sales appears generally expected for ThursdayΆs report from a disappointing 67,300 running bales registered for the week ended Oct. 8.

The USDA is scheduled to release the sales-shipments report at 7:30 a.m. CDT. The last report showed the weakest sales in six weeks and a four-week low in upland shipments, 67,402 running bales.

Net upland sales the last four weeks have averaged 120,557 bales and shipments have averaged 93,422 bales.

Futures prices during the reporting week ended Oct. 15 ranged from 60.97 cents to 64.16 cents, basis spot December, with settlements from 61.61 cents to 63.86 cents.

Open interest increased 764 lots Tuesday to 193,661, with DecemberΆs down 365 lots to 114,531 and MarchΆs up 940 lots to 58,821. Certificated stocks declined 964 bales to 42,445. Awaiting review were 4,241 bales.