Rio Grande Valley cotton got needed rain. Corpus classing office prepares for increased receipts. Storms brought welcomed moisture to areas of Southeast and Delta. Rivers in Far West overflowed banks. Upland outstanding loans fell to 2.6 million RB.
Cotton futures settled a session of choppy price action mixed Monday, with maturing May rising 110 points in the largest gain and most-active July dropping 54 points in the biggest loss.
July finished at 78.79 cents, just above the midpoint of its 185-point range from up 30 points at 79.63 to down 155 points at 77.78 cents. It touched a new high since March 20 in the overnight session, slid to a three-session low shortly before noon CDT and cut the loss into the close.
May inverted over July on a settlement at 80.09 cents after 130 notices were issued on first notice day. December closed off five ticks at 74.95 cents, trading within a 68-point range from 75 to 74.32. Thinly traded October rose 50 points to close on its session high at 75.20 cents.
Volume slowed to an estimated 27,255 lots from 28,198 lots the previous session when spreads accounted for 10,578 lots or $38% and EFP 1,464 lots. Options volume slipped to 5,120 lots (2,571 calls and 2,549 puts) from 7,557 lots (4,055 calls and 3,502 puts).
On the crop scene, thunderstorms brought much needed rain to cotton in the Rio Grande Valley and delayed planting elsewhere in southern Texas last week, according to an Agricultural Marketing Service review.
Stands matured as expected with daytime temperatures in the 90s and nighttime lows in the 60s. Most fields were squaring. Final planting continued in the Upper Coast. Rain was spotty in the Coastal Bend where producers worked to control thrips. The crop progressed well.
Heavy thunderstorms and saturated fields delayed planting in eastern Texas. Some areas got as much as 9 inches of rainfall. About 40% of the fields had been planted in Ellis County (Waxahachie) in the North Central Blacklands. Fields had been planted in the Brazos Bottom.
The cotton classing office at Corpus Christi is preparing for the possibility of a 20% to 30% increase in 2017-crop sample receipts.
In the Southeast, widespread showers brought around a quarter to half an inch of scattered rain from the Gulf Coast to the Carolinas and Virginia. Recent rain has helped reduce droughty conditions in parts of North Central Alabama and the eastern Carolinas, according to the U.S. Drought Monitor. Topsoil moisture was evaporating in areas of Central Georgia that had missed significant rainfall.
Midweek showers brought around an inch of welcomed moisture to some areas in the North Delta. Soil moisture improved slightly, though abnormally dry conditions persisted in parts of the region. Moderate drought and abnormally dry conditions contracted modestly in the South Delta, but rainfall for the month was less than half the historical average in Louisiana and Mississippi.
Rivers and streams are flowing and in most cases overflowing from snow melt in the Far West. Planting continued and seedling development advanced under good conditions.
Separately, U.S. 2016-crop upland under loan declined 230,878 running bales to 2.6 million RB during the week ended during last Monday, the latest USDA figures showed.
Repayments were made on 233,405 RB and entries were 2,527 RB. Loans outstanding included 234,967 RB of Form A loans issued to individual growers and 2.365 million RB of Form G issued to marketing cooperatives or loan serving agents. An undetermined portion of the outstanding loans is committed and awaiting commitment shipping dates to be withdrawn.
Futures open interest grew 2,668 lots Friday to 242,874, with MayΆs down 2,832 lots to 712, JulyΆs up 2,609 lots to 131,992 and DecemberΆs up 2,527 lots to 96,687.
Certified stocks declined 6,063 bales to 294,896. There were 1,675 newly certified bales and 7,738 bales decertified. Awaiting review were 2,106 bales at Galveston.
