Mostly hot, dry conditions remained in place across the Cotton Belt. Bollworm moths collected in Alabama. Large areas remained abnormally dry in the Delta. Harvest expanded in the Rio Grande Valley. Dryland cotton showed stress in the Texas Plains. Yuma cotton reached cutout.
Cotton futures rallied from triple-digit overnight losses to near unchanged Monday, but December then lost momentum and finished lower for a second day and the fifth time in the last six sessions.
December settled down 39 points to 72.29 cents, finishing in the upper third of its 109-point range from down 114 points at 71.54 to down five points at 72.63 cents. Nearby October closed down 40 points to 72.12 cents and March finished down 34 points to 72.98 cents.
The market, seen as vulnerable to profit-taking amid still overbought stochastics readings following a new buildup reported in fund longs, lost ground amid strength in U.S. dollar index futures, weakness in crude oil prices and losses in U.S. equities.
The USDAΆs weekly crop progress report, scheduled for release after the close, is expected to show a decline in cotton conditions.
Volume slowed to an estimated 19,615 lots from 23,854 lots the previous session when spreads accounted for 9,842 lots or 41%, EFS three lots and EFP one lot. Options volume totaled 5,677 calls and 8,928 puts.
Mostly hot, dry conditions remained in place across the U.S. Cotton Belt during the week ended Thursday, according to a weekly review Friday from USDAΆs Agricultural Marketing Service.
In the Southeast, scattered thunderstorms brought around 0.25 to 0.50 of an inch of accumulated moisture to areas along the Atlantic and Gulf Coasts. Afternoon popup showers brought lesser accumulations to localized areas farther inland in Alabama and Georgia. Sunny to partly cloudy conditions prevailed across most of the Carolinas and Virginia, while heavy showers brought around 2 inches to parts of central South Carolina.
Scouts reported significant increases in bollworm moths collected in pheromone-baited traps in Alabama. Producers also monitored and treated fields for plant bugs and stink bugs across the lower Southeast.
The North Delta needed a general rain to ease pressure on irrigation systems and help to moderate temperatures. Abnormally dry areas expanded in Central Arkansas and western Tennessee. The crop made normal progress under fair conditions except in Missouri where cotton advanced slowly. Fields were treated for plant bugs and spider mites. Plant growth regulators were applied.
Large portions of the South Delta remained abnormally dry. Areas of moderate to severe drought expanded in Louisiana and Mississippi. Irrigation systems operated at full capacity to ensure normal crop development and reduce square shedding. The crop made good progress. Treatments were applied to control plant bugs and spider mites.
Harvesting and ginning expanded in the Rio Grande Valley. A Texas Boll Weevil Eradication Program report showed year-to-date captures of 11,718 weevils in the valley as of July 18, including non-commercial cotton captures.
Bolls had opened and defoliation began in the Coastal Bend. Some fields were harvested and modules transported to gin yards. Pressing was to begin when sufficient modules were on hand to maintain continuous operation. In eastern Texas, plants were loaded with fruit and stands advanced, reports indicated.
Irrigation continued where available in the West Texas Plains. Industry sources reported excellent boll load and fruit retention. Minor bacterial blight issues were reported. Dryland cotton began showing stress under hot, dry weather and needed an immediate slow, soaking rain. Weeds were moderately controlled with herbicides and manual removal.
In Arizona, cotton reached cutout around Yuma, had moved into peak bloom in the central area and was blooming, fruiting and setting bolls in the eastern region. Industry people were encouraged.
Cotton in the San Joaquin Valley was blooming and at peak water use as irrigation continued. Insect pressures remained low.
Futures open interest dipped 86 lots Friday to 232,300, with DecemberΆs down 1,073 lots to 178,204 and MarchΆs up 864 lots to 35,749. Certified stocks declined 1,908 bales to 118,170.
