Cotton planting moved rapidly across the lower Southeast last week, made good to excellent progress in the Delta and expanded on irrigated acres in the Texas Plains. Pima crop advanced normally in the Far West.
Cotton futures settled in the red Monday on the heels of a weekly reversal down, with July matching Friday’s nine-session intraday low.
July lost 92 points to close at 83.70 cents, near the low of its 140-point range from up 28 points at 84.90 — six points shy of Friday’s high — to down 112 points at 83.50 cents. It closed at its lowest settlement since April 24.
December traded within the prior-session range for a second day and settled down 38 points to 79.86 cents, in the lower quarter of its tight 66-point trading span from 80.36 to 79.70 cents. It closed on its lowest finish since May 3.
An inability of the spot contract to gain traction on modest gains appeared to have encouraged speculator and fund long liquidation. Large outstanding July on-call mill sales offered support.
Volume slowed to an estimated 24,800 lots from 31,919 lots the previous session when spreads accounted for 13,935 lots or 44% and EFP 204 lots. Options volume declined to 7,894 lots (4,681 calls and 3,213 puts) from 8,991 lots (5,966 calls and 3,025 puts).
Cotton planting advanced rapidly across the lower Southeast last week, made good to excellent progress in the Delta and expanded on irrigated acreage in the Texas Plains, according to a weekly review by USDA’s Agricultural Marketing Service. Crops made excellent progress in the Desert Southwest and San Joaquin Valley.
Warm soils were helping to advance seed germination in the lower Southeast, but planting on dryland fields in some areas of Georgia was going to stop soon because of insufficient soil moisture. Moderate to severe drought persisted in parts of South Alabama, coastal Georgia and South Carolina.
Weekend showers had brought 0.25 of an inch to 2 inches of moisture to portions of eastern North Carolina and Virginia. Planting was gaining momentum, but was delayed in some areas by wet conditions. Seedlings were emerging in the earliest planted fields across the Southeast.
Planting in the Delta was expected to move rapidly going forward. No rain was reported in the North Delta and up to an inch fell in parts of the South Delta. Some random showers were forecast for the region later this week.
Isolated showers brought light rainfall to some areas of the West Texas Plains, but weren’t enough to alleviate droughty conditions. Some dryland producers planted in dry soils and hoped for rain to germinate seeds. Extension specialists and crop consultants monitored for wireworms that can damage cotton seedlings during drought.
Stands reached full bloom in the Rio Grande Valley and insect monitoring was underway. Plants were up to seven leaves up to forming pinhead squares in the Upper Coast. Replanted acres had begun to emerge. Spraying for weeds was active. Planting continued in the Blacklands.
The Pima or extra-long staple crop advanced normally under hot, dry conditions in the Far West with little to no insect pressure reported. Strong winds and low humidity increased wildfire danger in Central Arizona, New Mexico and the El Paso area.
Certified stocks in deliverable position increased 1,042 bales to 74,506 on Friday. Open interest declined 2,217 lots to 283,522, with July’s down 4,057 lots to 134,671 and December’s up 880 lots to 117,052.