Concerns about sales cancellations weighed on prices. Planting made rapid progress in much of the Cotton Belt. Crop on the Texas High Plains estimated 30% planted.
Cotton futures settled lower across the board Monday, down 19 to 116 points, with spot July extending its weekly reversal down last week to finish at an eight-session close.
July settled down 106 points to 78.39 cents, just off the low of its 120-point range from up five points at 79.50 cents to down 115 points at 78.30 cents. It posted the high on the opening overnight. December closed down 44 points to 73.01 cents, in the lower quarter of its 88-point range from 73.70 to 72.82 cents.
Concerns about cancellations expected to show up in ThursdayΆs export sales report and growing deliverable stocks weighed on the market.
Volume slowed to an estimated 23,045 lots from 31,838 lots the prior session when spreads accounted for 12,393 lots or 39%, block trades 2,650 lots and EFP 198 lots. Options volume totaled 6,128 lots (3,404 calls and 2,724 puts), compared with 6,206 lots (1,342 calls and 4,864 puts).
On the crop scene, U.S. planting made rapid progress in much of the Cotton Belt last week, though forecasts for rains were expected to slow activity in some regions.
Planting has steadily increased the past few weeks to reach 30% completed on the Texas High Plains, Mary Jane Buerkle, communications director of the Lubbock-based Plains Cotton Growers, Inc., reported in the PCGΆs weekly Cotton News.
The estimate was the consensus at the PCGΆs advisory group meeting on Friday and compares with only about 10% to 15% a year ago when planting was retarded by mostly cool, rainy weather. Chances for rain just ahead could slow or bring progress to a temporary but welcome halt.
With persistent winds last week drying topsoil and seedbeds, many producers were either waiting or not planting at full throttle while hoping for a good rain. The cotton planting deadline for full insurance coverage in some northern counties is May 31.
Plains irrigated stands had begun to emerge, USDAΆs Agricultural Marketing Service said Friday in a weekly cotton review. Some fields were watered. Localized areas got beneficial moisture. Some thunderstorms were severe, but no stand damage was reported. Replanting had been reported in northern areas where snow fell three weeks ago.
Elsewhere, scouting for plant pests was underway and some treatments were applied for red spider mites in the Rio Grande Valley. Cotton had begun to square in the Upper Coast. Wind damage was reported to most stands. A few fields were treated for fleahoppers. Rain was needed.
In East-Central Texas, some replanting had been completed. Reports indicated that stands in the northern Blackland Prairies had stalled at five-and-six-true leaves and needed moisture to progress.
Widespread thunderstorms brought trace amounts to half-an-inch of rain across the lower Southeast early in the period, with slightly heavier accumulations along Atlantic coastal areas.
Producers welcomed the moisture in Southeast Alabama and South Georgia where moderate to extreme drought persisted. Planting advanced the remainder of the period under hot, dry conditions. Sporadic rainfall caused some stands to emerge unevenly in South Georgia.
Planting made rapid progress in much of the Delta following scattered showers and thunderstorms. Producers rushed fieldwork ahead of wet weather forecast to return over the weekend. Seedling disease was evident in some of the earliest fields in Arkansas and Louisiana.
Hot, dry conditions advanced the Arizona crop. Heat units were near normal levels. Some of the earliest fields in Central Arizona showed the first pinhead squares. No significant pest pressures were reported.
Overall, the San Joaquin Valley crop looked good, but growth was slowed by cool conditions. Heat units were below average. Some seedling diseases were found and thrips populations were building.
Futures open interest declined 4,945 lots to 253,343 on Friday, with JulyΆs down 5,528 lots to 113,412, DecemberΆs up 185 lots to 119,852 and MarchΆs up 137 lots to 13,021.
Certified stocks grew 2,993 bales to 405,991. There were 4,137 newly certified bales and 1,144 bales decertified. Awaiting review were 3,696 bales — 1,760 at Galveston and 1,936 at Memphis.
