December cotton was higher Monday as production concerns persisted in Texas and a possible breakout of pink boll worms in India. Although, West Texas sees increased chances of rain this week, many traders question how much of a benefit such rain would have on dry-land fields.
In other potential crop threats, sources in India suggested some localized infestations of the dreaded pink boll worm appeared. Last year, this insect reeked tremendous havoc of Indian production.
Monday afternoon, USDA will issue its latest crop condition data. Even with one-half of the Texas crop already rated as very poor to poor, the crop held its own last week. It will be interesting to see what adjustments the government might make Monday. In additional, USDA may show improvement in the Southeastern and mid-Atlantic crops.
December 18 cotton closed Monday at 8840, up 28 points, March 19 8839, up 31, and December 19 settled at 8130, down 12. Estimated volume on Monday was 15,000 contracts.