Scattered thunderstorms forecast for Texas Plains. Heat welcomed in the Southeast. Rains benefited cotton in parts of the North Delta. Storm remnants delayed defoliation in Arizona. Some producers began defoliating in the SJV.
Cotton futures remained on the defensive Monday, closing modestly lower amid follow-through pressure from FridayΆs failed rally attempt.
Benchmark December settled off 46 points to 84 cents, just below the middle of its 85-point range from up nine points at 84.55 to down 76 points at 83.70 cents. It settled below the low of the previous session and traded during day below March, though it closed at a 21-point premium.
DecemberΆs weather premium linked to the late crop and murky quantity and quality outlook has narrowed from as wide as 333 points on Aug. 19. March closed down 37 points to 83.79 cents.
Volume quickened to an estimated 15,600 lots from 9,962 lots the previous session when spreads totaled 4,349 lots or 44% and EFP 132 lots. Options volume totaled 6,382 calls and 2,200 puts.
Light, isolated showers developed in the southern portions of the Texas High and Rolling Plains Monday morning, and chances for afternoon showers and thunderstorms capable of producing locally heavy rainfall improved to 40% for the Lubbock area. Rain chances were forecast at 30% tonight, 20% Tuesday and 20% again Thursday.
The moisture would help the crop to fill out bolls, especially in some dryland and lightly watered areas. Overall, fruit retention is reported good and producers are encouraged, though some reports have indicated boll size appeared smaller than normal.
A few showers and thunderstorms over the weekend brought up to 0.18 of an inch at Dimmitt in the northern High Plains and up to 1.13 inches at Memphis in the northern Rolling Plains.
Elsewhere, producers in the Southeast welcomed mostly dry, warm conditions in much of the region last week, according to a review by the cotton division of USDAΆs Agricultural Marketing Service. Beneficial heat units improved cotton suffering from low plant vigor.
However, topsoil moisture deteriorated in areas that have missed significant rainfall in recent weeks and timely rain was needed to alleviate stress on plants with shallow root systems. Irrigation was underway in some fields.
Crop maturity was highly variable. Bolls were cracking open in the earliest-planted fields but later-planted fields remained weeks behind. Some limited defoliation was reported in Georgia. Insecticide treatments continued in most areas to combat infestations of stinkbugs.
Whitefly populations were building in Alabama and Georgia and fields were sprayed that met threshold limits. The undertone among producers was cautiously optimistic. A few more weeks of similar weather would enhance top-crop development and yield potential.
Heavy rain early in the week benefited cotton in the North Delta, but drier areas needed more rain to help finish out the crop. Irrigation continued in most areas. High temperatures helped the crop make good progress. Some South Delta cotton also was moisture-stressed. Crop protection treatments gave way to applications of harvest-aid chemicals.
In the Desert Southwest, remnants of Tropical Storm Lorena combined with monsoon moisture to produce strong winds and heavy rains for much of southern Arizona, leaving water standing in some gin yards and fields.
Wet conditions delayed defoliation around Parker — along the Colorado River — and some areas of Central Arizona. Some producers will have to defoliate the crop a second time. A few fields had some bolls knocked off but damage wasnΆt widespread. Harvesting was 75% completed around Yuma.
Some producers began defoliating in the San Joaquin Valley. Whitefly populations continued to build.
Futures open interest increased 1,323 lots Friday to 173,425 lots, with DecemberΆs up 582 lots to 118,760 and MarchΆs up 514 lots to 41,713. Certificated stocks declined 1,654 bales to 15,671. Awaiting review were 2,941 bales.
World values as measured by the Cotlook A Index eased five points Monday morning to 90.30 cents. The premium to FridayΆs December futures settlement widened 24 points to 5.84 cents.
