Spotty rainfall on the Texas High Plains Monday missed the big bulk of the dryland cotton acreage. Favorable rains bolster Burkina FasoΆs cotton production outlook.
Cotton futures surged to a five-session high and finished in the upper quarter of a broad trading range Tuesday.
Benchmark December jumped 166 points to settle at 73.95 cents, trading within a 206-point range from down 12 points at 72.17 cents to up 194 points at 74.23 cents. It led the gains and finished dead even with its settlement of July 18.
Nearby October advanced 151 points to close at 73.63 cents, March rose 139 points to settle at 74.37 cents and May gained 116 points to finish at 74.12 cents.
Volume increased to an estimated 28,168 lots from 19,615 lots the previous session when spreads accounted for 7,239 lots or 37%, EFP 44 lots and EFS 19 lots. Options volume rose to 15,650 lots — 6,771 calls and 8,879 puts.
Spotty overnight rainfall on the Texas High Plains, where cotton plantings of 3.49 million acres are estimated at 64% of Texas acreage and 35% of the U.S. all-cotton area, missed the big bulk of the dryland acreage.
Dryland acres last year totaled 61% of the High PlainsΆ planted cotton area. Rainfall at National Weather Service reporting sites ranged Monday from 0.02 of an inch to 1.49 inches and was confined to the northern and northwestern areas.
Irrigated cotton in the semi-arid region also requires supplemental rainfall for optimum yields. Chances for additional showers and thunderstorms in the Lubbock area now have been extended through Friday at 20% to 30% daily. A few storms could produce gusty winds to 50 miles per hour, frequent lightning and locally heavy rainfall, forecasters say.
Temperatures have moderated and are expected to range for the remainder of the week at Lubbock from the low to middle 90s for daytime highs and from the high 60s to low 70s for nighttime lows.
The USDAΆs weekly Texas crop progress and condition report showed the area of short to very short topsoil moisture on the High Plains expanding to 83% in the northern district and 90% in the southern counties.
On the international scene, favorable rains across Burkina FasoΆs cotton-growing regions are enhancing the 2016-17 planting season in AfricaΆs top cotton producer, Dow Jones Newswires reported.
The cotton planting season, usually June and July, has been lifted by well distributed rains, allowing farmers to expand acreage, the report said, quoting state regulator Sofitex.
Favorable weather could help the country hit its production target after El Nino-induced drought cut the prior seasonΆs crop well short, the report said.
The USDAΆs World Agricultural Outlook Board earlier this month projected Burkina FasoΆs 2016-17 production at 1.2 million bales, up 4.35% from the 2015-16 output of 1.15 million bales but down from 1.35 million bales in 2014-15.
Futures open interest grew 1,103 lots Monday to 233,403, with DecemberΆs up 61 lots to 178,265 and MarchΆs up 997 lots to 36,746. Stocks in deliverable position declined 590 bales to 117,580.
