U.S. all-cotton classing reached 9.584 million running bales, about 76% of the crop estimate. Southeast expected to be largest producing area for the third consecutive season.
Cotton futures settled slightly ahead on light volume Monday, bouncing to a new high close for the move for the fifth session in a row.
Spot March edged up 16 points to close at 83.38 cents, just off the high of its 108-point range from down 88 points at 82.34 to up 20 points to match FridayΆs high at 83.42 cents. This again was its highest settlement since Oct. 22.
The May contract settled up 22 points to 83.12 cents, July gained 38 points to 82.65 cents and December rose 31 points to 77.08 cents.
Volume slowed to an estimated 12,200 lots from 18,424 lots the prior session when spreads accounted for 5,270 lots or 29% and EFP for 381 lots. Options volume totaled 930 calls and 2,645 puts.
U.S. all-cotton classing slowed to 956,189 running bales during the week ended Dec. 12 from 1.232 million the previous week to bring the total for the season to 9.584 million RB, about 76% of the latest crop estimate.
Upland classing declined to 912,879 bales from 1.168 million, hiking the seasonΆs total to 9.140 million running bales. Cotton tenderable on futures contracts totaled 62.1% for the week and 63.1% for the season.
Widespread shower activity interrupted fieldwork and harvesting in areas of the Southeast from coastal Alabama to Virginia, according to a review by the cotton division of USDAΆs Agricultural Marketing Service.
Weekly rainfall accumulations totaled a quarter of an inch to more than an inch in most cotton-growing areas. Clear, cool conditions prevailed late in the week, but standing water in low-lying fields and saturated soils continued to delay outside activities in South Alabama, South Georgia and the Florida Panhandle.
Some gins reduced operations as they waited for the later-planted fields to be picked. Disappointing yields of less than a bale per acre were reported in the wettest of those areas.
Similar conditions prevailed in portions of the Carolinas, where the weather prevented bolls from cracking open in the upper canopy of later-planted fields.
Ginning continued, though some gins reduced daily operating schedules as they waited for modules to be retrieved from soggy fields.
The Southeast is likely to be the largest U.S. cotton-producing region for the third consecutive season as a result of drought-reduced harvested area and production in the Southwest.
Production in the Southeast is estimated at 4.5 million bales, 24% below last seasonΆs output, owing largely to yields — projected at 825 pounds per harvested acre — averaging well below the record of 1,033 pounds in 2012.
Futures open interest gained 381 lots Friday to 163,014, with MarchΆs up 156 lots to 108,916 and MayΆs up 291 lots to 30,545.
Certificated stocks dropped 560 bales to 57,533 on decertification of 599 bales and 39 newly certified bales. No cotton awaited review.
The Cotlook A Index of world values was unchanged Monday morning at 88.80 cents. The premium to FridayΆs March futures settlement narrowed 16 points to 5.58 cents.
