March lost the most. U.S. upland classing reached 14.573 million RB last week, up 3.1 million RB from a year ago. ChinaΆs calendar 2016 cotton imports reported at 4.13 million bales, down 39.1% from 2015.
Cotton futures swung in wide trading ranges on heavy volume Tuesday and closed down 30 to 106 points, with spot March finishing with the largest loss to give back a chunk of the prior dayΆs sharp gain.
March settled at 73.57 cents, in the lower half of its 247-point range from up 37 points at 75 cents — a new high since Jan. 5 — to down 210 points at a three-session low at 72.53 cents.
May lost 80 points to settle at 74.37 cents, in the middle of its 227-point range from up 34 points at 75.51 to down 193 points at 73.24 cents, while July finished down 63 points at 75.02 cents and December closed with the smallest loss at 71.62 cents.
Continued growth in stocks in deliverable position may have contributed to the pressure after March closed the prior day at its highest settlement since Aug. 8.
Volume climbed to an estimated 50,045 lots from 39,798 lots the previous session when spreads accounted for 16,773 lots or 42%, EFP 144 lots and EFS 100 lots. Options volume totaled 3,943 calls and 4,647 puts.
On the U.S. crop scene, upland classing of 507,112 running bales during the week ended Thursday, down from 570,821 RB the previous week, brought the total for the season to 14.573 million RB, up 3.1 million RB from a year ago.
The latest weekly tabulation Friday indicated about 92% of the upland crop estimate, converted to running bales, had been classed. Tenderable cotton accounted for 67% for the week and 70.9% for the season.
A year ago, USDA had classed 95% of the final upland production, with only 55.6% at that time meeting quality requirements for tendering on futures contracts.
Of the U.S. upland classing last week, 414,390 RB or 82% came from late-harvesting areas of Texas, boosting the statewide total to 6.733 million RB, up from 5.17 million RB a year ago.
By regions, weekly classing runs and totals for the season were 17,556 RB and 3.583 million RB in the Southeast, 6,438 and 3.252 million in the Delta, 445,714 and 7.159 million in the Southwest and 37,404 and 578,952 in the Far West.
Classing of an additional 16,640 RB of Pima, down from 18,969 the previous week, lifted the extra-long staple total to 461,640 RB and the all-cotton count to 15.034 million RB. A year ago, USDA had classed 11.878 million RB of upland and Pima combined.
Ice and rain halted outside activities in the West Texas Plains early in the reporting week, USDA noted in a weekly cotton review. Temperatures then quickly climbed above normal and began to dry fields and gin yards.
Ginning continued, but about 25% of the gins have completed operations for the season. Gins north of Lubbock expect to operate into February and March because of above-average yields.
Sample receipts declined at classing facilities, but multiple shifts continued providing classification services. Daily receipts at Lubbock declined to 21,030 samples from 39,030.
In international news, China imported 143,557 metric tons (659,300 480-pound bales) of cotton last month to raise the calendar 2016 total to 898,315 tons (4.126 million bales), down 39.1% from 2015.
Futures open interest gained 4,924 lots Monday to 265,374, with MarchΆs up 1,873 lots to 163,042 and MarchΆs up 1,966 lots to 47,554. Certificated stocks grew an additional 2,188 bales to 125,434.
