Cotton futures trudged a worn path last week, zigzagging inside the prior weekΆs trading ranges to finish higher.

Benchmark December gained 279 points for the week ended Thursday to close at 105.78 cents, in the upper half of its 508-point range from 102.15 cents to 107.23 cents but up just 73 points from where it settled on Aug. 1. Trading volumes were some of the lightest since December 2009.

Traders kept watch ahead of a holiday weekend on a tropical disturbance in the Gulf of Mexico and on Katia, which had weakened to a tropical depression far out in the Atlantic but was expected to strengthen again over the next two days. The market will be closed Monday in observance of Labor Day.

Cash grower-to-business trading quickened to 1,865 bales on The Seam from 858 bales the previous week. Prices advanced 277 points to an average of 97.74 cents, reflecting a 182-point gain to 45.14 cents in premiums over loan redemption rates.

Business-to-business sales slowed to 461 bales from 3,134 bales on prices averaging 105.90 cents, up from 97.58 cents, and premiums of 49.80 cents, up from 47.15 cents.

Net U.S. export sales for delivery this season of 224,700 running bales during the week ended Aug. 25, up from net cancellations of 230,200 bales the previous week, raised a lot of eyebrows in view of major revisions involving commitment reductions and changes to optional origin sales in recent weeks.

Inquiries had been widely described as slack during the latest reporting week. But commitments rose unexpectedly to 6.741 million running bales, almost 57 percent of the USDA forecast, up from about half the final 2010-11 shipments at the corresponding point last season.

Much-larger shipments of 243,100 running bales boosted the seasonΆs total to 500,400 bales, 382,800 bales behind exports a year ago. Shipments need to average roughly 233,300 running bales a week to achieve the USDA forecast.

On the U.S. crop scene, ratings dropped during the week ended last Sunday, USDA reported, with good to excellent down a percentage point to 30 percent and poor to very poor flat at 41 percent.

The ratings remained the worst on record for this time of year, with poor to very poor above the prior high of 36 percent in 2006 and good to excellent below the previous low of 34 percent in 1998. A year ago, good to excellent totaled 60 percent and poor to very poor was 12 percent.

Conditions overall held about steady in Texas, Mississippi and Louisiana and declined in the other cotton states. Harvesting in top-producing Texas edged up to 13 percent done, ahead of 6 percent last year and 8 percent on average.

A new insect pest, Kurtomathrips, has spread substantially on the Texas High Plains since it was first identified a few weeks ago by extension entomologists. Damaging infestations have been reported in Gaines, Terry, Hockley, Garza, Lubbock and Hale counties.

David Kerns, area extension entomologist at Lubbock, says in Focus on South Plains Agriculture that he suspects the very small pest — at least half the size of normal thrips — is elsewhere but hasnΆt been noticed.

Boll setting nationally reached 96 percent, even with last year but two points ahead of average. Boll opening at 27 percent was a bit behind 28 percent a year ago but up from the five-year average of 23 percent.

Some preliminary estimates indicated losses in cotton hit by Hurricane Irene in the Southeast likely amounted statistically to less than 1 percent of the prospective U.S. crop. The situation still was being evaluated, however.

While U.S. cotton production is expected to decline this season, increased outputs remain in prospect in China and India, the worldΆs two largest producers, new internal estimates have indicated.

ChinaΆs production is projected at 7.48 million metric tons (34.355 million 480-pound bales) by the China Cotton Association. This compares with USDAΆs August estimate of 33 million bales, up 8 percent from last seasonΆs crop.

However, the association cautioned, continuous rainy weather in some areas could have an impact on the final output. The CCA estimated the cotton area is up 4.1 percent from last season.

IndiaΆs crop could reach a record high for the second year in a row, climbing to 35.5 million bales (170 kilos or 375 pounds), the state-run Cotton Advisory Board estimated.

This would be about 27.72 million 480-pound bales and would compare with USDAΆs forecast of 27 million bales, up 6 percent from the previous year. Updated USDA estimates will be issued Sept. 12.

The CAB estimated IndiaΆs 2011-12 cotton area at 12.1 million hectares (one hectare equals 2.471 acres). This is slightly higher than USDAΆs 12 million hectares, up 8 percent from 2010-11.

Exports are projected by the CAB at 7 million 375-pound bales or 5.46 million 480-pound bales, compared with USDAΆs forecast of 5 million of the larger bales for 2011-12 and also estimated for 2010-11. India is the worldΆs second largest cotton exporter.

Output gains in such other major producers as Australia, Pakistan, Uzbekistan and Brazil — though BrazilΆs cotton area is forecast to decline — are expected by USDA to result in a record high world crop of 122.71 million bales, up 7 percent from the previous year.

Meanwhile, ChinaΆs state purchasing program of domestic cotton for its reserves opened Thursday. The China Cotton Association will announce a daily seed cotton reference price.

When the average price monitored by the China National Cotton Reserve Corp. and the CCA is lower than 19,800 yuan per metric ton five trading days in a row, the program will be triggered on the sixth working day.

The reference price Thursday was 19,156 yuan per ton, a level which would allow program procurement to begin Sept. 8.