Crop estimated 75% planted on the Texas High Plains as of Friday. Remainder reported mostly dryland acres. Widespread beneficial rain fell in the Rio Grande Valley and Upper Coast. Blacklands got spotty rains.
Cotton futures posted the highs in about the first 20 minutes of the overnight session and moved progressively lower from there to settle near the dayΆs lows on losses of 0.5% in July and 0.7% in December.
July closed down 38 points to 76.31 cents, three ticks off the low of its tight 75-point range from up 34 points at 77.03 to down 41 points at 76.28 cents. It has made lower lows five of the last six sessions.
December settled down 51 points to 72.61 cents, in the lower quarter of its 80-point trading span from up 16 points at 73.28 to down 64 points at 72.48 cents. October closed down 70 points to 74.54 cents and the other contracts were down 26 to 43 points.
Fund long liquidation and scale mill fixations continued with 14 trading sessions now left until first notice day for July. Stocks in deliverable position dipped but remained near the highest since July 2014.
Volume rose to an estimated 30,260 lots from 29,500 lots the prior session when spreads accounted for 16,097 lots or 55% and EFP 699 lots. Options volume increased to 3,390 lots (2,489 calls and 901 puts) from 3,921 lots (2,500 calls and 1,421 puts).
On the crop scene, with cotton planting deadlines for full insurance coverage looming on June 5 in the central Texas High Plains and on June 10 in the southern counties, progress across the region reached 75% completed as of Friday.
Shawn Wade, director of policy analysis and research for the Lubbock-based Plains Cotton Growers, Inc., reported the plantings estimate in the organizationΆs weekly cotton newsletter.
The insurance planting deadline in some more heavily irrigated northern counties expired May 31. Final planting dates for cotton extend to June 20 in counties in the Rolling Plains east of the Caprock.
Most of the cotton remaining to be planted on the High Plains was dryland acreage that needed rainfall to top the soil profile, Wade said. The planting estimates and crop progress were based on reports at the PCGΆs advisory group meeting.
Subsoil moisture below the top 3 to 5 inches was described as still fair to good in many areas, although some locations were drier than they would like to be. Stands that have been established thus far were generally reported as fair to average.
Some replanting was reported, said a weekly cotton review Friday by USDAΆs Agricultural Marketing Service. Planting was active ahead of showers and thunderstorms in nearby forecasts. Some producers tilled lightly to break crusty topsoil and encourage seedlings to emerge.
In the Rolling Plains, beneficial rain fell early in the reporting period. Planting was on schedule and around 15% completed in irrigated areas, local reports indicated.
The Rio Grande Valley and Upper Coast got widespread beneficial rain last Monday. Hail damage was reported on a small acreage. Stands were at varying stages, with reports of cutout, full bloom and opened bolls. Treatments for plant pests, including fleahoppers in younger cotton, were applied where needed.
Spotty rains in the Blackland Prairies helped cotton stands advance. Some storms were severe and large hailstones damaged buildings. Rain skirted many cotton areas between Dallas and Waco. Those stands needed rain.
Futures open interest fell 2,766 lots Friday to 240,680, with JulyΆs down 4,548 lots to 83,776, DecemberΆs up 1,222 lots to 130,286 and MarchΆs up 490 lots to 17,401.
Certified stocks declined 1,984 bales to 441,870. There were 823 newly certified bales and 2,807 bales decertified. Awaiting review were 11,606 bales, including 1,934 at Galveston and 9,672 at Memphis.
