Crop on the Texas High Plains rose by 195,000 bales on the month as per-acre yields climbed from last season despite ongoing drought. Harvest 90% completed, against 96% on average.
Cotton futures eked out small closing gains in nearby deliveries and posted larger gains in new-crop contracts Tuesday.
Spot March closed up five points at 83.73 cents, just below the midpoint of its 97-point range from up 63 points at 84.31 to down 34 points at 83.34. It closed within 21 points of where it opened Monday night and had established the range for the day by about 7:40 a.m. CST.
The May contract edged up seven points to 84.02 cents, July gained 28 points to 84.02 cents and December advanced 66 points to 79.02 cents.
Volume slowed to an estimated 21,300 lots from 28,829 lots the previous session when spreads totaled 11,689 lots or 41%, EFP 168 lots and EFS 10 lots. Options volume totaled 5,364 calls and 4,884 puts.
Production estimates rose by 195,000 bales from the December forecast to 2.67 million bales on the Texas High Plains, down 277,000 bales or 9% from the last seasonΆs output, according to district figures in USDAΆs January crop report.
Despite failed acres jumping to 2.015 million, a whopping 53% of the planted acres, the High Plains crop accounted for 62% of the Texas output and 21% of the U.S. upland production. Abandonment was up from 44% last season.
Planted acres fell to 3.8 million from 4.179 million in 2012 and harvested acres to 1.785 million from 2.326 million, but yields climbed 134 pounds per acre from a year ago to an average of 742 pounds.
In the adjoining Rolling Plains, production rose to 780,000 bales from 531,300 bales in 2012. Growers there planted 1.03 million acres and harvested 840,000 acres for an average yield of 686 pounds.
Combined, the High and Rolling Plains harvested a combined 3.45 million bales, little changed from last seasonΆs 3.479 million. In the third year of an ongoing drought, the West Texas PlainsΆ 2013-14 output still comprised 80% of the statewide upland production and exceeded that of any other state.
The Texas crop was 90% harvested as of Sunday, compared with 85% a year ago and the five-year average of 96%, according to the Austin field office of USDAΆs National Agricultural Statistics Service.
Soil moisture was short to very short in 88% and 79% of the northern and southern High Plains, respectively, and in 80% to 83% in the Rolling Plains. In the Lubbock district, moisture was adequate in 20% and surplus in 1%.
Winter wheat was reported in fair to poor condition in the Texas Plains, particularly in areas that lack adequate moisture.
Futures open interest expanded 1,599 lots Monday to 177,222, with MarchΆs up 526 lots to 109,736 and MayΆs down 69 lots to 34,714. Certificated stocks grew 1,946 bales to 44,893.
World values as measured by the Cotlook A Index gained 120 points Tuesday morning to 89.25 cents. The premium to MondayΆs March futures settlement widened 11 points to 5.57 cents.
