Positive technical readings and concerns about the market flow of cotton on the snowbound Texas High Plains offered support. U.S. upland cotton classing reached 10.299 million running bales.
U.S. cotton futures closed higher Monday, extending gains from the prior session’s outside-range reversal to the upside as trading resumed following the Christmas break.
- March settled up 21 points to 63.87 cents, just below the midpoint of its 104-point range from down 27 points at 63.39 to up 78 points at 64.44 cents. It climbed above highs of the prior two weeks and closed at its highest finish since Dec. 9, ticking last at 64.04 cents.
- May closed up 37 points to 64.72 cents, while December 2016 gained 24 points to settle at 65.09 cents.
Positive technical readings and concerns that a paralyzing winter storm could disrupt the market flow of cotton on the snowbound Texas High Plains offered support. A record 11 inches of snow fell Sunday in the Lubbock area, closing some major roads and highways.
Volume increased to an estimated 15,234 lots from 9,981 lots the previous holiday-shortened session when spreads accounted for 2,523 lots or 25% and EFP 23 lots. Options volume totaled 1,040 calls and 637 puts.
U.S. upland cotton classing of 773,902 running bales during the week ended Dec. 24, down from 883,876 RB the previous week, brought the total for the season to 10.299 million, down 21% from 13.035 million RB graded a year ago.
The latest USDA figures showed 56.2% of the cotton classed for the season met tenderable requirements, compared with 71.0% a year ago. Tenderable cotton improved on the week to 57.3% from 56.0%.
Pima classing declined to 19,051 RB from the prior weekΆs 30,989 RB, boosting the extra-long staple total for the season to 349,360 RB. A year ago, ELS classing totaled 465,774 RB.
All-cotton classed for the season of 10.648 million RB was down from 13.489 million RB graded a year ago and amounted to 84% of the December production estimate.
Separately, U.S. upland loans outstanding rose by 470,033 RB to 3.342 million RB during the week ended Dec. 21, USDA figures showed. Entries totaled 489,271 RB and repayments were made on 19,238 RB.
Upland cotton under loan included 301,831 RB of Form A issued to individual growers and 3,040,153 RB of Form G issued to marketing cooperatives or loan servicing agents.
Futures open interest dipped 295 lots Thursday to 181,331, with MarchΆs down 518 lots to 123,016 and MayΆs down 30 lots to 30,424. Cert stocks were unchanged at 64,723 bales.
