U.S. upland classing reached almost 96% of the January crop estimate. Ginning rapidly winding down in Southeast and continued in the Texas Rolling Plains and Central Arizona. Water use cut sought in California.

Cotton futures fell to steep losses Monday as emerging markets and currencies remained in turmoil amid concerns about global growth.

Spot March closed down 296 points to 84.25 cents, its lowest finish since Jan. 14 and in the lower quarter of its 350-point range from down five points at 87.16 to down 355 points at 83.66 cents.

The May contract lost 278 points to 84.71 cents, July fell 265 points to 84.76 cents and December dropped 187 points to 76.67 cents.

Follow-through selling on an anemic response to the largest weekly export sales of the crop year reported Friday helped pound prices into sell-stops, analysts said. Aggressive spec-fund buying in the week ended last Tuesday lifted those net longs to the largest since early October and rendered the market vulnerable to profit-taking and stop-loss selling.

The Federal Reserve begins its regular two-day policy meeting on Tuesday, with a further reduction expected in U.S. central bank stimulus. Tightening credit conditions in China as Beijing seeks to curb growth in high-risk lending have contributed to fears of a global slowdown.

Volume jumped to an estimated a hefty 41,600 lots from 26,615 lots the previous session when spreads totaled 12,867 lots or 48% and EFP 68 lots. Options volume totaled 6,381 calls and 4,278 puts.

On the U.S. crop scene, upland classing slowed to 162,223 running bales during the week ended Jan. 23 from 279,051 bales the previous week, boosting the total for the season to 11.632 million bales.

The total amounted to almost 96% of the January crop estimate. Cotton tenderable on futures contracts fell to 49% for the week and 61.8% for the season from 50.6% and 62%, respectively, the week before.

Pima classing of 16,229 bales for the week and 562,682 for the season upped the all-cotton total to 12.195 million bales.

Classing of 54,970 bales from the Texas High and Rolling Plains boosted the count at the Lubbock, Lamesa and Abilene facilities to 3.341 million bales. Most of the weekΆs regional classing was at Abilene, which graded 33,824 bales, to hike the West Texas total there to 570,230 bales.

The Abilene office also grades cotton from East Texas, Oklahoma and Kansas and has classed an overall total of 932,632 bales for the season.

Most gins in the Southeast expected to complete operations within the next two weeks, according to a weekly review by the cotton division of USDAΆs Agricultural Marketing Service.

Ginning was rapidly winding down in South Alabama, Georgia and the Carolinas. Some fields remained to be picked in isolated areas where soggy conditions have delayed harvesting.

Producers in the Delta carefully monitored cotton futures prices in considering planting options this spring.

Most of East Texas experienced cold temperatures and precipitation, including the Coastal Bend and South Central areas. The moisture was beneficial in that planting is four weeks away in some areas.

Most gins the High Plains have finished for the season, while gins in the Rolling Plains continued operations.

Above-normal temperatures persisted in the Desert Southwest with no rainfall in the immediate forecast. Ginning continued in Central Arizona.

Gov. Jerry Brown declared a drought emergency in California as the state grapples with what could turn out to be the driest year in recorded history for many areas.

Roller ginning continued and saw ginning was completed in the San Joaquin Valley.

Futures open interest edged up 97 lots Friday to 188,638, with MarchΆs down 1,619 lots to 107,288 and MayΆs up 41,386. Cert stocks grew 2,405 bales to 73,876, with 3,169 bales awaiting review.

The Cotlook A Index of world values was unchanged Monday morning at 93.75 cents. The index premium to FridayΆs March futures settlement widened 12 points to 87.212 cents.