Crop advanced at a rapid pace in the Southeast and dryland cotton began to cutout. Dry weather wanted in the Delta. Rain stalled Rio Grande Valley harvest. First upland yields of 2.5 to 2.75 bales reported in Arizona. Bottom bolls cracked open in the San Joaquin Valley.

Cotton futures settled on modest gains in slow trading Monday, bouncing from a four-session low in benchmark December.

December edged up 25 points to close at 68.28 cents, in the middle of its 127-point range from down 40 points at 67.63 to up 87 points at 68.90 cents. It closed 140 points from last TuesdayΆs five-week low.

Nearby October pushed up 35 points to settle at 67.92 cents, while March rose 19 points to 68.95 cents and December 2017 gained 57 points to 68.53 cents.

Talk circulated of quickened export business amid tight availability for nearby shipment, and mill price fixations contributed to support.

Volume slowed to an estimated 16,067 lots from 25,645 lots the previous session when spreads accounted for 11,379 lots or 44%, EFP 91 lots and EFS 60 lots. Options volume totaled 1,289 calls and 2,901 puts.

The crop advanced at a rapid pace in hot, humid conditions in the Southeast during the week ended Thursday, USDAΆs Agricultural Marketing Service reported in a cotton review released Friday.

Mostly clear to partly cloudy conditions prevailed. Scattered thunderstorms brought around 1 inch of rain to areas of South Alabama, South Georgia and the Florida Panhandle, reducing abnormally dry conditions. Mostly light showers left a trace to an inch of beneficial moisture in portions of the Carolinas and Virginia.

Dryland cotton had begun to cutout in the lower Southeast and bolls were cracking open on the bottom of plants. Producers scouted fields and applied sprays for rising populations of stink bugs in some areas. Bollworm moth flight was heavier than normal and some fields required multiple sprays to combat bollworms.

A steady flow of moisture-laden air from the Gulf of Mexico brought up to 2 inches of beneficial rain to most areas of the North Delta. Some isolated areas got up to 4 inches. More rain was forecast. Producers were hoping for a period of clear, dry weather.

Up to 3 inches of rain fell in cotton-producing areas of the South Delta, with much higher amounts in southern Louisiana and Mississippi where flooding wreaked havoc. No damage to cotton fields was reported, but assessments were still underway. Most fields approached cutout.

Rain stalled harvesting in the Texas Rio Grande Valley where about 20% of the crop remained on the stalk. Significant numbers of modules were stranded in saturated fields. Modules on gin yards allowed ginning to continue. Exceptional per-acre yields included reports of 3 bales per acre off dryland crops and 3.5 bales off irrigated acreage.

Four to 10 inches of rain from tropical storms halted harvesting in other areas of South Texas. Bolls had opened in some fields in the Brazos Bottom ahead of flooding. Reports indicated upwards of 12 inches of rain fell in some cotton areas of eastern Texas.

Widespread rain fell intermittently in widely varying amounts in the West Texas Plains. The rain was beneficial, though too late to help some stands progress, and helped supplement irrigation. Reports indicated plant pests remained light but bollworm moth activity had increased.

In the Desert Southwest, defoliation was active around Yuma, Ariz. Limited harvesting had begun with first yields for upland around 2.5 to 2.75 bales per acre. Ginning was expected to begin in early September. Central and eastern Arizona cotton progressed normally.

Blooming continued in the San Joaquin Valley. Bottom bolls were cracking open. Industry people reported the crop was in good to excellent condition. No significant insect pressures were reported.

Futures open interest fell 5,607 lots Friday to 230,641, with DecemberΆs down 6,980 lots to 161,381 and MarchΆs up 1,375 lots to 47,183. Certified stocks declined 1,134 bales to 64,041.