Weed control reported problematic in Southeast. Delta cotton made excellent progress. Steady rain helped cotton in Blacklands and Central Texas.
Wells turned off in Texas Plains. Earliest fields neared peak bloom around Yuma. Ideal conditions prevailed in the San Joaquin Valley.
Cotton futures reversed from a moderate overnight gain to finish with a sharp loss just off the dayΆs low Monday.
Most-active December closed off 146 points to 83.18 cents, seven ticks off the low of its 219-point range from up 66 points at 85.30 cents to down 153 points at 83.11 cents. It settled at its lowest close since May 31 and extended its losing streak to six sessions in a row.
Ongoing concerns about a credit squeeze and slowdown in China, the worldΆs second largest economy and largest cotton consumer, weighed on global equities and most commodities and contributed to the cotton loss.
Maturing and thinly traded July settled down 217 points to 82.38 cents, moving from 85.78 to 82.38 cents and finishing with an outside-range reversal to the downside.
Volume slowed to an estimated 17,300 lots from 22,042 lots the previous session when spreads totaled 4,884 lots or 22%, EFP 3,629 lots and EFS 251. Options volume totaled 4,534 calls and 2,770 puts.
On the crop scene, wet conditions prevailed across most of the Southeast during the week ended June 20 as widespread thunderstorms brought intermittent shower activity from South Alabama to Virginia, according to the cotton division of USDAΆs Agricultural Marketing Service.
Day-to-day rainfall accumulations totaled around one-quarter to one-half of an inch, with occasionally heavier downpours in localized areas. Water damage was reported in some fields in Alabama. Herbicide applications were delayed and weed control was problematic. Drier conditions prevailed in areas of South Georgia.
Welcome rain of 1-3 inches in most Delta areas coupled with warm temperatures helped cotton to make excellent progress. High numbers of thrips still were found in late-planted cotton still susceptible to injury in the North Delta. Populations of aphids, plant bugs and spider mites increased rapidly in the South Delta and a few hotspots were treated.
Steady rain in most of the Blackland Prairies and Central Texas helped the crop. Cotton in the Upper Coast established a foundation for good boll loads and above-average yields were expected. Reports indicated harvested acres will be low in the Rio Grande Valley because of drought.
Widespread rains helped advance some cotton and supplemented irrigation water in the West Texas Plains. Wells were turned off to conserve energy and underground water reserves. High winds and hail damaged some cotton and destroyed other cotton.
Some producers reported losing not only cotton crops but pivot irrigation systems. Replanting in cotton now is not a viable option on the High Plains because of the lateness of the season.
Hot, dry conditions prevailed for most of the Desert Southwest. The earliest-planted fields approached peak bloom around Yuma, Ariz.
Cotton advanced under ideal conditions in the San Joaquin Valley. Lygus populations reached treatable levels in some fields. Beneficial insects were reported plentiful. Some producers began second irrigations.
Futures open interest fell 6,951 lots Friday to 162,076, with JulyΆs down 4,916 lots to 4,124 and DecemberΆs down 2,308 lots to 142,816.
Certificated stocks grew 11,745 bales to 574,199. There were 52,882 bales awaiting review for a potential total of 627,021 bales.
World values as measured by the Cotlook A Index fell 50 points Monday morning to 91.85 cents. Index premiums to FridayΆs futures settlements narrowed 73 points to July to 6.70 cents and widened 22 points to 7.21 cents to December.
