Harvesting has begun in TexasΆ Upper Coast. Wet conditions negatively impacted the crop in the Southeast. Some boll shedding noted in the North Delta. Ginning around Yuma expected to begin early in September. Heat pushed cotton to cutout in the SJV.
Cotton futures settled lower Monday, consolidating within ranges of the prior session when prices posted a new high for the move for the second straight day.
Benchmark December closed off 46 points to 92.86 cents, in the lower third of its 93-point range from down 71 points at 92.61 to up 22 points at 93.54 cents. March eased four ticks to close at 90 cents
.
Volume slowed to an estimated 15,600 lots from 24,529 lots the previous session when spreads totaled 6,938 lots or 28%, EFS 2,211 lots and EFP 326 lots. Options volume totaled 2,336 calls and 6,878 puts.
On the crop scene, growers initiated harvesting and more gins began operations in TexasΆ Upper Coast, according to a weekly review issued Friday by the cotton division of USDAΆs Agricultural Reporting Service.
A small acreage was released for insurance because of low lint production. An inch of rainfall benefitted irrigated cotton in the Brazos Bottoms. Harvest-aid chemicals were applied to dryland fields.
The crop in the West Texas Plains was about 10 days behind normal but advanced with rainfall and warm weather. Timely precipitation enhanced plant development. Producers began to taper irrigation except on drip-watered fields, which will continue to be irrigated into September.
Wet conditions again negatively impacted crop conditions and inhibited root development in many fields in the Southeast. Low-lying areas remained flooded in Alabama and Georgia. Crop dusters sprayed ground-inaccessible fields with fungicides and insecticides.
Severe thunderstorm activity brought up to 4 inches of unneeded moisture to northern parts of the North Delta, while light rain brought beneficial moisture to the South Delta. Inclement weather caused some boll shedding in the North Delta. Pressure from plant bugs remained high in the North Delta and was light in Louisiana and moderate in Mississippi.
In the Desert Southwest, defoliation continued around Yuma, Ariz., but wasnΆt widespread. Ginning was expected to begin the first week of September. Monsoon activity was limited to Safford, Ariz., early in the period. Central Arizona fields progressed normally, with little-to-no insect pressures or diseases reported.
Sunny, hot weather pushed cotton to cutout in the San Joaquin Valley. The crop was estimated 10 to 14 days ahead of schedule. Some fields showed evidence of fruit loss, caused by extreme heat in early July. Still, industry people are optimistic about yield potential
The California Department of Food and AgricultureΆs pink bollworm program has mapped about 275,000 acres of cotton for the state. Cotton people estimated about 88,500 acres were planted to upland in the SJV.
Futures open interest expanded 4,334 lots Friday to 212,738, with DecemberΆs up 3,342 lots to 170,395 and MarchΆs up 742 lots to 31,505. Certificated stocks declined 159 bales to 42,841.
World values as measured by the Cotlook A Index gained 125 points Monday morning to 97.35 cents. The premium to FridayΆs December futures settlement narrowed 28 points to 4.03 cents.
