Light weekend precipitation fell in parts of the Texas High Plains. Planting delayed in South Texas and gains momentum around Yuma, Ariz. Zero water allocations announced in California.
Cotton futures finished at a five-session high close Monday, underpinned partly by talk of fresh export inquiries lately and large unpriced old-crop on-call sales.
Most-active May closed up 119 points to 88.33 cents, in the upper quarter of its 176-point range from down 32 points at 86.82 to up 144 points at 88.58 cents. It climbed to a triple-digit gain, retreated to a slight loss just below the overnight low, and rallied again to a new session high.
Maturing March, where trading expires Friday, closed up 127 points to 87.86 cents, July gained 78 points to 87.67 cents and December rose 71 points to 78.53 cents.
Volume totaled an estimated 19,100 lots, against 19,470 lots the previous session when spreads totaled 5,054 lots or 26%. Options volume slid to 817 calls and 1,080 puts.
A wintry front brought light precipitation to parts of the Texas High Plains over the weekend, but Lubbock got a mere 0.1 of an inch to bring its total since Jan. 1 to 0.17-inch.
The total is 1.29 inches below normal and compares with 2.23 inches received during the corresponding period last year. The largest weekend precipitation fell in the northern and western areas, including 0.22-inch at Dimmitt, 0.20 at Muleshoe and 0.17 at Friona.
No rain is in the forecast for the Lubbock area through the remainder of the week.
The USDAΆs Risk Management Agency was expected to announce a cotton insurance price — possibly later Monday — at 78 cents for the 2014 crop on High Plains. The price discovery period ended Friday for the Plains.
Elsewhere, light precipitation and cool soil temperatures delayed initial planting in the Rio Grande Valley and other areas of South Texas last week, according to a review by the cotton division of USDAΆs Agricultural marketing Service.
The National Agricultural Statistics Service rated soil moisture conditions at 62% adequate in the valley and 46% short and 43% very short around Corpus Christi. The RMA set the crop insurance price at 83 cents. (Differences in area insurance prices are related to differences in price discovery periods.)
In the Desert Southwest, planting gained momentum around Yuma, Ariz., and some cotton was up to a stand. Ginning continued in Central Arizona.
In CaliforniaΆs San Joaquin Valley, beneficial moisture of around one-third to one-half of an inch fell in the central and northern areas late in the reporting week. Heavier rains and snowfall were in prospect for the state heading into the weekend.
The U.S. Bureau of Reclamation announced zero water allocations from the federal Central Valley Project for North and South Delta agricultural water contractors. Snowpack measurements by the California Department of Water Resources showed water content was 24% of average in the Sierra Nevada Mountains as of Feb. 27.
Futures open interest dropped 732 lots Friday to 160,878, with MarchΆs down eight lots to 90, MayΆs down 1,620 lots to 99,672 and JulyΆs up 549 lots to 33,083. Certificated stocks grew 1,911 bales to 259,095.
World values as measured by the Cotlook A Index fell 75 points Monday morning to 93.30 cents. The premium to FridayΆs May futures settlement narrowed eight points to 6.16 cents.
