Planting moved rapidly in parts of the Southeast. Heavy rains fell in the Delta and East Texas. Areas of the Rolling Plains got rain. Post-planting irrigations began at Yuma.
Cotton futures extended a losing streak to seven sessions in a row Monday amid suspected ongoing long liquidation by hedge funds.
Spot July closed off 67 points to 89.15 cents, just off the low of its 81-point range from up 11 points at 89.93 to down 70 points at 89.12 cents. July, which settled at a new low close since March 5, has closed on the plus side only once in the last 10 sessions.
December settled down 29 points to 82.05 cents, just below the midpoint of its 92-point range from up 26 points at 82.60 to down 66 points at 81.68 cents. It closed at a new low finish since April 21.
The inverted July-December spread lost 38 points to close at a new low settlement since January at 710 points, five points off the dayΆs low.
Volume increased to an estimated 17,400 lots from 12,234 lots the previous session when spreads totaled 2,771 lots or 23% and EFP 120 lots. Options volume totaled 1,682 calls and 1,867 puts.
Planting has advanced rapidly in Alabama and Georgia, though intermittent shower activity had delayed fieldwork in some areas coming into last week, according to a weekly review by the cotton division of USDAΆs Agricultural Marketing Service.
Mostly clear, warm conditions allowed planting to make good progress in the Carolinas and Virginia. Seedlings thrived and the first true leaves appeared in some of the earliest fields. Producers would welcome a timely shower in some areas of South Carolina.
Up to 4 inches of rain fell across the North Delta and up to 5 inches in most areas of the South Delta. Excellent planting conditions allowed producers to make fast progress before the rains moved in.
Strong thunderstorms and heavy rainfall brought beneficial moisture to East Texas. Some areas of the Blackland Prairies accumulated more than 6 inches. Damage was reported on seedlings, but the moisture helped the crop to advance later in the week when warm, sunny conditions returned.
Cotton progressed in the Rio Grande Valley and some fields were treated with insecticides. Slow, soaking rainfall benefited the crop.
Areas of the Rolling Plains received around 2 inches of beneficial rainfall and planting slowly expanded. Some producers delayed planting and waited for rainfall and warmer weather. Isolated areas south of Lubbock reported half an inch of rain. Replanting was underway in drip-irrigated fields. Some seedlings had emerged.
Producers began the first post-planting irrigations around Yuma, Ariz. The crop remained six to 10 days ahead of last year at this time. Little or no pest pressure or diseases were reported. The Safford Valley was about 90% to 95% planted. Some cotton there was up to a stand.
Good seedling emergence and vigor were reported in the San Joaquin Valley. Some fields were treated for thrips.
The Bureau of Reclamation said it would release Millerton Lake water to meet obligations to the San Joaquin River Exchange Contractors Water Authority, which holds senior water rights. The exchange provides irrigation water to about 240,000 acres of farmland.
Futures open interest fell 2,046 lots Friday to 189,062, with JulyΆs down 2,556 lots to 111,839 and DecemberΆs down 489 lots to 68,810. Cert stocks grew 5,470 bales to 411,182. There were 6,790 newly certified bales, 1,320 bales decertified and 7,200 bales awaiting review.
World values as measured by the Cotlook A Index eased 10 points Monday morning to 92.45 cents. The index premium to FridayΆs July settlement widened 44 points to 2.63 cents.
Forward A Index values for 2014-15 dropped 35 points to 89.70 cents, widening the discount to the 2013-14 index by 25 points to 2.75 cents and narrowing the premium to FridayΆs December futures close by seven points to 7.36 cents.
