Optimum planting period opened on the Texas Plains. Water-logged soils have forced some producers in the Southeast to cut projected acres. Delta producers fixed prices. Planting expanded in the Desert Southwest. Seedling emergence varied in the SJV.
Cotton futures bounced from slight early losses to finish ahead on new seasonal high closes near session highs on light volume and tight-range price action Monday.
Most-active July settled up 43 points to 84.75 cents, trading within a 69-point range from down 24 points at 94.08 to up 45 points at 94.77 cents. It traded inside FridayΆs range but closed on a new high finish for the move for the second straight session.
December closed up 59 points to 84.53 cents, also its second high seasonal settlement in a row, trading from down 14 points at 83.80 to up 69 points at 84.63 cents. It has posted new intraday seasonal highs five of the last six sessions.
Volume slowed to an estimated 12,900 lots from 16,843 lots the previous session when spreads totaled 6,107 lots or 36% and EFP 204 lots. Options volume totaled 2,996 calls and 2,436 puts.
With no significant rain in sight and drought conditions continuing to intensify in the bulk of the region, the traditional optimum cotton planting period opened Monday on Texas High Plains.
No rain is foreseen in the Lubbock area through the remainder of the week, with blowing dust expected Tuesday and Wednesday. Temperatures were forecast to reach a high of 98 degrees Monday at Lubbock on the heels of a 95-degree high on Sunday. The normal is 81 degrees. Temperatures reached 101 degrees Sunday at Paducah in the Rolling Plains.
Elevated fire weather conditions are expected across the region Monday afternoon and again Tuesday and Wednesday. A chance for thunderstorms is forecast Wednesday evening in the Rolling Plains.
Strong northerly winds with gusts above 60 miles per hour also had stirred blowing dust and reduced visibility early in the reporting week ended Thursday, according to a review by the cotton division of USDAΆs Agricultural Marketing Service.
Fieldwork was delayed about 3-1/2 days. No planting was reported. Reports indicated irrigated fields had failed to retain moisture. Exceptional drought conditions expanded to 17.75% from 12.54% the previous week, according to the U.S. Drought Monitor. Some producers are reported planning to irrigate fewer acres.
Record high temperatures of around 105 degrees in the Rio Grande Valley and South Texas helped early plant development to progress. Producers were encouraged with stand advancement but noted that more rain will be needed to advance the crop. The Upper Coast was saturated from recent rainfall and some fields had to be replanted.
Elsewhere, violent weather entered the Southeast early in the week. Persistent wet weather has forced some producers to reduce their projected acreage 10% to 15% because of an inability to plant on water-logged soils, possibly switching some cotton acres to soybeans.
Some producers in the Delta took advantage of higher December futures to fix prices on previously booked cotton. Severe thunderstorms brought up to 4 inches of rain in the North Delta and up to 7 inches in the South Delta along with damaging winds and tornadoes.
In the Desert Southwest, a storm system brought welcomed moisture to Arizona. Strong winds accompanied the system. Crop progress was normal and rated mostly good around Yuma. Planting expanded rapidly throughout Arizona, New Mexico and El Paso.
A quarter of an inch to just over half an inch of beneficial rain fell in the San Joaquin Valley. Snowfall was recorded in elevations over 5,500 feet in the Sierra Nevada Mountains. Seedling emergence varied. Some plants reached the second true-leaf stage.
Futures open interest expanded 3,499 lots Friday to 189,610, with MayΆs down 55 lots to 479, JulyΆs up 1,973 lots to 121,481 and DecemberΆs up 1,370 lots to 60,861. Certificated stocks grew 4,621 bales on 5,237 newly certified bales and 616 bales decertified. Awaiting review were 8,445 bales.
World prices as measured by the Cotlook A Index were unavailable because of a United Kingdom holiday.
