March lost 1.7% for the month. Fed held interest rates steady and affirmed a solid outlook for the economy. Cotton traders looked ahead to the U.S. weekly export sales report.

Cotton futures settled on modest gains on heavy volume Wednesday as traders awaited the U.S. weekly export sales-shipments report.

March gained 25 points to settle at 77.28 cents, rallying from a new intraday low since Dec. 21 but still finishing with a loss for the month of 135 points or 1.7%. It closed just below the midpoint of its 168-point range from down 51 points at 76.52 cents to up 117 points at 78.20 cents.

May settled up 39 points to 78.36 cents, trading within a 167-point range from 77.53 cents to 79.20 cents, and July closed up 38 points to 79.05 cents. New-crop December gained 36 points to finish at 74.51 cents.

Near the close, the Federal Reserve held short-term interest rates steady and said it will continue along its path of gradual increases aimed at keeping the economy on tract, Dow Jones Newswires reported.

The rate-setting Federal Open Market Committee, in a statement released after its policy meeting, offered nothing to dispel market expectations that it will deliver its next rate increase in March.

The statement made few changes from December and affirmed a solid outlook for U.S. economic growth.

Volume rose to an electronically estimated 69,100 lots from 57,588 lots the prior session when spreads accounted for 29,121 lots or 51%, EFS 2,069 lots and EFP 801 lots.

An increase is generally expected in export sales in the report scheduled for release by USDA at 7:30 a.m. CST on Thursday.

That’s not saying much, however, considering that net upland sales for the prior week ended Jan. 18 fell to 67,700 running bales, a 19-week low and the second lowest of the marketing year. Prices for the week ended last Thursday ranged between 81.61 cents and 83.95 cents, basis March.

Sales reported last week were down 70% from the prior four-week average and fell below the pace needed to match USDA’s 2017-18 export forecast. The much-lower-than-expected sales triggered a sharp selloff that some observers expect to result in a further increase in sales to be reported next week.

Net upland sales the last four reporting weeks have averaged 202,800 RB. Traders will have an eye out for cancellations, which in the last report totaled 190,200 RB and included commitment reductions of 98,300 RB for Bangladesh and 27,800 RB for China.

Upland shipments, which have consistently lagged the pace needed to achieve the USDA estimate, have averaged 253,100 RB the last four weeks. Exports reported last week were down 12% from the prior four-week average.

Futures open interest declined 3,155 lots to 308,390 on Tuesday, with March’s down 4,523 lots to 140,088 lots and May’s down 315 lots to 86,631 lots. The other contracts showed OI increases. Stocks in deliverable position rose by 3,199 bales to 66,341. The increase was at Memphis.