Harvest expanded in Rio Grande Valley. Isolated showers fell on the Texas Plains. Low plant vigor noted in the Southeast. Delta crop progressed well but still behind. Cotton reported ahead of schedule in the West. Upland growers booked little additional acreage in July.
Cotton futures finished modestly ahead after bouncing to a four-session high Monday as range-bound trading persisted.
Benchmark December edged up 22 points to settle at 85.20 cents, in the lower third of its 98-point range from down seven points at 84.91 to up 91 points at 85.89. March gained 28 points to close at 83.45 cents.
December has continued to wallow not far from 85 cents on a closing basis ahead of the survey-based U.S. crop estimate from USDA next Monday. There are considerable differences of opinion on crop prospects.
Volume increased to an estimated 12,100 lots from only 10,296 lots the previous session when spreads accounted for 3,469 lots or 34% and EFP for four lots. Options volume totaled 2,247 calls and 1,221 puts.
Harvesting expanded and ginning began in TexasΆ Rio Grande Valley during the latest reporting week, according to a review posted Friday by the cotton division of USDAΆs Agricultural Marketing Service.
The Corpus Christi office graded the seasonΆs first samples. Crop variability existed as bolls began to pop open in later-planted fields. Some growers treated for the Verde plant bug. The Upper Coast and Winter Garden areas are expected to begin ginning around mid-August. Cotton was blooming in East Texas but heat stress caused some fruit shedding.
Isolated showers deposited an inch to 2 inches of beneficial rainfall on some fields in the West Texas Plains. Some fields were setting bolls and others reaching cutout. Fruit retention was described as excellent. Most plants were at or near peak water use.
Later-planted fields in areas of the Southeast suffered from low plant vigor owing to cool, wet summer conditions. Soggy soils persisted and some fields were drowned out. Producers applied growth regulators and fungicides on land firm enough to support equipment. Cotton made good progress under drier weather in the Carolinas and Virginia.
The Delta crop progressed well under warm, mostly dry weather after light rain from scattered thunderstorms dissipated. However, the crop still was reported seven to 10 days behind in most areas because of cool growing conditions.
Cotton was ahead of schedule around Yuma, Ariz., and some producers applied final irrigations. Recent rainfall was beneficial and helped to increase yield potential in Central Arizona. Lygus and mites were monitored and treated as needed.
CaliforniaΆs San Joaquin Valley crop established a good boll load. Insect pressure was light and easily controlled. Most fields were about two weeks ahead of schedule. Producers prepared for an early harvest.
Meanwhile, U.S. upland growers nudged forward contracting up a percentage point last month to 12% of the expected acreage, up from 10% a year ago.
Contracting edged up a point to 33% in the Southeast, the only notable regional change on the month and up from 13% a year ago. Growers had booked 15% in the Mid-South, down from 30% in 2012; 2% in the Southwest, down from 4%; and 3% in the West, also down from 4%.
The estimates are based on the National Agricultural Statistics ServiceΆs planted acreage data and informal AMS surveys. Cotton consigned to marketing organizations isnΆt included in the estimates, which do include cotton contracted with those groups.
Futures open interest dipped five lots Friday to 173,061, with DecemberΆs down 401 lots to 145,997 and MarchΆs up 230 lots to 19,547. Certificated stocks were unchanged at 70,644 bales.
World values as measured by the Cotlook A Index dropped 55 points Monday morning to 90.60 cents. The premium to FridayΆs December futures settlement narrowed 10 points to 5.62 cents.