New-crop December posted the only gain. Heat advisory issued on the Texas Plains. Slight chance for showers and thunderstorms forecast for Friday and Sunday. Planting moved rapidly in the North Delta. Some South Delta producers with unplanted acres were waiting for rain.
Cotton futures finished mixed on huge volume Wednesday, with July reversing off a new contract high to finish in the red and new-crop December — the only month in the black — ending on a slight gain.
July dropped 72 points to close at 92.49 cents, in the lower quarter of its 518-point range from up 319 points at 96.40 to down 199 points at 91.22 cents. December edged up 20 points to settle at 90.85 cents, in the lower half of its 473-point range from up 308 points at 93.73 to down 165 points at 89 cents. That was its fourth new contract high in a row.
Both July and December remained within trading ranges established by early morning. The other contracts settled unchanged to down 130 points, with the biggest loss in December 2019 at 80.37 cents.
Volume jumped to an estimated 102,800 lots from 37,561 lots the prior session when spreads accounted for 19,343 lots or 52%, EFP 1,342 lots and EFS 150 lots. Options volume dipped to 40,854 lots (29,242 calls and 19,612 puts) from a whopping 50,381 lots (29,079 calls and 20,402 puts).
It will really heat up Tuesday afternoon in the central and southern Texas High Plains and Rolling Plains, forecasters say, with highs expected to peak around 105 degrees.
A heat advisory is in effect. Hot, dry and gusty winds are expected to create elevated fire weather across much of the region. Near record to record temperatures are forecast to continue and may expand in coverage through late week.
A 20% chance for showers and thunderstorms is forecast in the Lubbock area on Friday, but evaporation rates would be high with a high again near 105 degrees and breezy winds. Slight chances also are seen for Sunday.
Some producers who got rain from recent spotty showers say there’s still a dry zone between the top and deeper soil moisture. They fear that seedlings that that make it to a stand will die before reaching the deeper moisture unless additional rain is received soon. Many growers with drip irrigation systems still needed rain to get the crop started.
Elsewhere, mostly favorable weather allowed producers in the North Delta to make excellent planting progress last week. Producers in Arkansas had planted 98% of their crop by Sunday, up from 93% last year and 92% for the five-year average, USDA’s latest progress report showed.
Isolated thundershowers brought up to 2 inches of rain and marble-sized hail to that region. No damage to newly planted fields was reported. Despite a few weather-related delays, planting advanced rapidly across the region and was ahead of schedule in all areas.
Some producers in the South Delta with unplanted acreage said they were hoping for rain before planting. Producers in Mississippi had 85% of their crop in the ground, compared with 81% last year and 75% on average.
Conditions changed very quickly from too wet to too dry because of localized weather patterns, some producers reported. Producers in some cases had resorted to irrigation to promote seed germination.
Certified stocks declined 13,398 bales to 74,143 on Tuesday, ICE’s daily report showed. There were 126 newly certified bales and 13,524 bales decertified. Awaiting review were 891 bales at Galveston. Open interest grew 3,201 lots to 306,930, with July’s down 2,969 lots to 112,676 and December’s up 5,071 lots to 5,071.
