U.S. upland growers had forward contracted about 16% of their expected acreage as of Sept. 1. Weekly classing of 55,649 bales brought the seasonΆs total to 138,399, including the first 1,440 bales at Abilene. Cotton procurement has begun in China.
Cotton futures settled with modest gains Monday, apparently on follow-through from FridayΆs bounce on improved U.S. export sales data.
Benchmark December closed up 29 points to 83.50 cents, slightly below the midpoint of its 142-point range from down 30 points at 82.91 to up 112 points at 84.33 cents. It has closed higher two sessions in a row for the first time since Aug. 15-16. October rose 47 points to 83.71 cents and March gained 46 points to settle at 83.05 cents. Overhanging Chinese supplies and uncertainties about possible reserve sales contributed to keeping a lid on gains.
Volume increased to an estimated 14,653 lots from 13,851 lots the previous session when spreads accounted for 3,612 lots or 26% and EFP for 62 lots. Options volume totaled 1,930 calls and 794 puts.
U.S. upland growers had contracted about 16% of their expected acreage as of Sept. 1, up from 13% booked through the corresponding period last year, according to informal surveys by the cotton division of USDAΆs Agricultural Marketing Service.
The estimate is based on the National Agricultural Statistics ServiceΆs August tally of acres for harvest. A survey showing bookings at 12% a month ago was based on the NASS estimate of planted acres.
By regions, contracting included 34% in the Southeast, up from 17% a year ago; 16% in the Mid-South, down from 31% in 2012; 4% in the Southwest, down from 5% last year; and 3% in the West, down from 5%.
Classing increased to 55,649 bales during the week ended Thursday from 38,347 bales the previous week. The weekΆs total included 1,440 bales at Abilene, Tex., the first of the season there, and 54,209 bales at Corpus Christi.
Cotton graded for the season totaled 138,399 bales, down from 547,823 bales classed a year ago. Tenderable cotton slipped to 41.1% for the week and 47.4% for the season.
Most cotton was off the stalk in the Rio Grande Valley and moving through the ginning and classing processes, AMS said in a weekly review. Recent rainfall left about 1,000 acres to be harvested and delayed module transportation to gins.
Harvesting expanded in the Upper Coast and Winter Garden areas. The Corpus classing office increased shift operations to keep pace with incoming sample receipts.
Gins in Central Texas began to submit samples for classification to the Abilene office as harvesting advanced. Most fields received the first application of defoliants, while about 40% got a second application of harvest-aid chemicals.
Producers in the West Texas Plains made plans to gradually terminate well watering. Spotty showers helped but many areas needed moisture. Some Alternaria stem blight disease was reported in isolated fields, extension specialists said.
Meanwhile, government procurement of 2013-14 production has begun in China as part of the temporary stockpiling program, the National Development and Reform Commission said in a notice.
Revisions in ChinaΆs controversial cotton policy are expected to be announced next year for the 2014-15 marketing year.
Futures open interest fell 905 lots Friday to 169,434, the 13th consecutive decline, with DecemberΆs down 1,148 lots to 119,980 and MarchΆs up 151 lots to 36,984. Certificated stocks dipped 24 bales to 18,206. Awaiting review were 1,217 bales.
World values as measured by the Cotlook A Index gained 80 points Monday morning to 89.15 cents. The premium to FridayΆs December futures settlement narrowed 11 points to 5.94 cents.
