Midsouth region led the projected U.S. production increase from last year on an expected output of 3.34 million bales. Rio Grande Valley ginning expected to continue into fall because of good yields.

Cotton futures tumbled to triple-digit losses for a second session Monday, giving up early gains to settle at a new low finish since July 11.

Benchmark December closed down 179 points to 68.86 cents, near the low of its 274-point range from up 86 points at 71.51 to down 188 points at 68.77 cents. It broke below the psychological 70-cent mark and finished around a 38.2% retracement (68.89) of the 23.79-cent rally from the spot futures low of 54.19 on Feb. 29 to the Aug. 5 high.

Nearby October also settled down 179 points, closing at 68.09 cents, while March lost 170 points to 69.41 cents and December 2017 shed 174 points to 68.79 cents.

The weekly traders-commitments report showing a heavy concentration of fund net longs may have encouraged additional long liquidation. Open interest coming into the session had fallen 4,614 lots from a week ago.

Volume totaled an estimated 29,634 lots, compared with 29,061 lots the previous session when spreads accounted for 6,685 lots or 23%, EFP 280 lots and EFS 16 lots. Options volume totaled 3,248 calls and 5,262 puts.

The seasonΆs first survey-based crop estimates from USDAΆs National Agricultural Statistics Service Friday showed the largest increase from last year in the Mid-South, as expected.

Production in the five-state Delta region is forecast at 3.34 million bales, based on conditions around Aug. 1, up 1.303 million bales from last year. Yields are estimated at 1,079 pounds per harvested acre, up from 1,030 pounds last year and the five-year average of 1,012 pounds.

Upland crop estimates in other regions rose from last year by 700,000 bales to 4.487 million in the six-state Southeast, 728,000 bales to 6.857 million in the three-state Southwest and 128,000 to 630,000 in the three-state West. Pima estimates increased 132,000 bales to 565,000.

U.S. all-cotton yields are expected to average 800 pounds per acre, up 34 pounds from last year but down 22 pounds from the five-year average.

The projected all-cotton crop of 15.879 million bales, up 2.991 million bales from last year, compared with a range in private guesstimates in two wire service surveys of 15.4 million to 16.05 million bales and a midpoint of 15.73 million.

If realized, the estimate of 4.07 million bales for the Texas High Plains would be up 272,000 bales from last year and the largest crop since 2010. Weather, of course, still could have a big impact on the outcome.

Planted acres are estimated at 3.59 million and acres for harvest at 3.325 million for an abandonment of 265,000 acres or 7.4%, little changed from 7.3% in 2015. Yields are projected at 588 pounds per harvested acre, down from 632 pounds last year and the 10-year average of 652 pounds.

Meanwhile, harvesting neared completion in the Texas Rio Grande Valley and ginning remained active last week, USDAΆs Agricultural Marketing Service reported in a cotton review.

Modules had accumulated on gin yards. Ginning was expected to continue into the fall because of good yields. The valley crop is estimated at 255,000 bales, up from 134,200 bales last year.

Harvesting continued in the Coastal Bend and around Corpus Christi. Most gins had begun operations. Gins in the Upper Coast expected to begin operations this week.

Classing of 41,858 bales from the territory served by the Corpus Christi facility during the week ended Thursday boosted the seasonΆs total to 85,738 bales, with tenderable cotton accounting for 87.7%.

Futures open interest fell 1,035 lots Friday to 243,428, with DecemberΆs down 1,195 lots to 178,560 and MarchΆs up 129 lots to 43,451. Certified stocks declined 3,699 bales to 86,404.