DTN Cotton Close: 2 Week Low Finish

DTN Cotton Close: 2 Week Low Finish

Favorable harvest weather expected across much of the U.S. belt this week weighed on market sentiment as weekly classing increased and the percentage of tenderable cotton rose. Market shrugged off more frost in the Texas Plains.

Cotton futures closed sharply lower Monday, with spot December finishing at a nine-session low settlement.

December lost 109 points to settle at 67.53 cents, its lowest close since Oct. 3 and the low print of its 135-point range from a high of 68.88 cents. It traded six points below the prior-session high and 14 points below the low.

March closed down 84 points to 67.32 cents, just off the low of its 111-point range from 68.40 to 67.29 cents. The remainder of the contract months settled down 55 to 82 points.

Volume increased to an estimated 23,994 lots from 16,143 lots the prior session when spreads accounted for 5,831 lots or 36%. Options volume climbed to 5,423 lots (2,887 calls and 2,536 puts) from 2,313 lots (1,781 calls and 532 puts).

Favorable harvest weather expected across much of the U.S. Cotton Belt this week weighed on market sentiment. The market shrugged off reports of widespread frost and temperatures near the freezing mark in mainly western and northern areas of the Texas High Plains. Earlier cold already had largely shut down cotton plants in parts of those areas.

U.S. all-cotton classing increased to 428,186 running bales during the week ended Thursday to bring the season’s total to 1.762 million RB, according to the latest weekly figures from USDA’s Agricultural Marketing Service. A year ago, classing totaled 1.879 million RB.

Upland classing quickened to 425,163 RB from 287,891 RB graded the previous week. Tenderable cotton improved to 81% from 77.2% the prior week and totaled 83.7% for the season, up from 69.6% last year.

Gins submitting samples of upland and extra-long staple cotton combined increased to 251, including 61 in Texas. Classing for the season in Texas reached 1.334 million RB, 76% of U.S. upland total and up from 1.065 million RB a year ago.

Ginning continued at an accelerated pace in the Upper Coast and Coastal Bend, AMS reported. Harvesting was considered done, but thousands of modules remained in the fields. Gin yards were filled with modules. The two gins still operating in the Rio Grande Valley finished late in the reporting period.

Harvesting continued in the northern Blackland Prairies, with brief interruptions from rainfall. Approximately 60% of the crop has been harvested, local sources reported. Dryland cotton yielded 1.5 bales to two bales per acre. Modules had accumulated on gin yards.

A Canadian air mass slowed boll maturation in the West Texas Plains early in the reporting week. Cooler, drier conditions saw temperatures ranging mostly from lows in the mid-30s to high 50s and highs from the low 60s to mid-80s.

Bolls continued to open and some fields were treated with pre-harvest aids. Some growers just south of Lubbock planned to start applying boll openers or defoliants next week. However, some fields have lacked enough heat units to mature bolls, especially later planted and “wildcat” cotton.

Producers made late-season management decisions on am immature crp[ on a field-by-field basis. Irrigated fields presented about a 15-day window of varying maturity levels, a producer said. Harvesting and ginning had begun on a limited basis.

Futures open interest gained 359 lots to 229,902 on Friday, with December’s down 362 lots to 123,308 and March’s up 360 lots to 72,721. Certified stocks declined 90 bales to 6,587.

Πηγή: Agfax
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