Hot, dry weather prevailed across most of the Cotton Belt. Traces of rain fell in the Southeast. Varying degrees of drought developed in parts of the Delta. Producers busily defoliated in the Rio Grande Valley. Hail damaged some cotton on the Texas Plains. Cotton made good progress in the Desert Southwest. Good fruit retention noted in the San Joaquin Valley.
Cotton futures finished mixed Monday, closing with modest losses of five to 33 points in deliveries through May 2017 and slight gains of 16 to 24 points in July 2017 and beyond.
December dropped the most, settling down 33 points to 73.95 cents, around the lower third of its 134-point range from up 67 points at 74.95 cents to down 67 points at 73.61 cents. It traded within the prior-day range. Nearby October settled down 23 points to 73.63 cents and March slipped 24 points to 73.95 cents, even with December.
Volume rose to an estimated 30,398 lots from 28,923 lots the previous session when spreads accounted for 6,177 lots or 21%, EFS 3,000 lots and EFP 174 lots. Options volume totaled 14,407 calls and 11,663 puts.
Hot, dry conditions prevailed across most of the U.S. Cotton Belt from the Carolinas to California during the week ended Thursday, according to a weekly review from USDAΆs Agricultural Marketing Service on Friday.
Sporadic afternoon showers and thunderstorms brought only traces of moisture throughout Alabama, portions of Georgia and the Gulf and Atlantic coastal regions. Accumulated moisture from intermittent afternoon showers amounted to less than half an inch in North Carolina and Virginia.
Thunderstorms late in the period brought up to 1 inch of much-needed moisture to the North Delta, and a few severe thunderstorms deposited nearly 2 inches. Producers continued to irrigate in parts of southern Arkansas where no beneficial rain fell. Abnormally dry areas had developed in central Arkansas and western Tennessee.
Scattered popup showers brought trace amounts of rain to a few places in the South Delta. Most of the region remained abnormally dry. Moderate drought had developed in Louisiana and central Mississippi and severe drought in northern Mississippi.
Producers busily defoliated and a limited number of fields had been picked in the Texas Rio Grande Valley, traditional source of the first U.S. new-crop supplies. Light numbers of modules have been moved to gins. Ginning was expected to expand over the weekend. Bolls in the Coastal Bend began to pop open. Heavy bollworm pressure was reported. Soils dried in the Blackland Prairies and rain was going to be needed soon.
Thunderstorms brought beneficial moisture to parts of the West Texas Plains. Hail and high winds damaged cotton in Dawson County. Dry, windy conditions with temperatures in the triple digits and nighttime lows in the upper 70s have left most fields parched. Soil conditions deteriorated, but cotton continued to progress.
The crop made good progress under hot, dry conditions in the Desert Southwest. Cotton approached cutout around Yuma, Ariz. Texas root rot remained a problem in some fields.
Cotton responded well to heat in the San Joaquin Valley. Fruit retention remained good. No pest pressures were reported.
Futures open interest grew 1,308 lots Friday to 226,895, with DecemberΆs down 530 lots to 181,153 and MarchΆs up 1,476 lots to 28,529. Cert stocks declined 176 bales to 128,895.
