Saturated soils delayed fieldwork in the Southeast. Fields flooded along river bottoms in Delta areas. Subsoil moisture termed plentiful in East Texas. Muddy fields stalled module movement in the Texas Plains. Ginning continued in Arizona. California snowpack water content measured.
U.S. cotton futures extended an early bounce Tuesday, with spot March jumping to a triple-digit gain and a nine-session high finish even as U.S. stocks turned lower and U.S. crude oil fell.
- March closed up 106 points to 62.47 cents, in the upper third of its 163-point range from down 11 points at 61.30 to up 152 points at 62.93 cents. This was its highest close since Jan. 5 and its largest one-day point gain since Nov. 25.
- May closed up 84 points to 62.74 cents, while December gained 22 points to settle at 62.69 cents.
- Ongoing concerns about tight availability of higher quality cottons were said to have contributed to the rally from near recent lows as March completed an outside-range reversal to the upside.
- Volume quickened to an estimated 37,069 lots from 23,041 lots the previous session when spreads accounted for 9,554 lots or 41% and EFP 328 lots. Options volume totaled 6,859 calls and 4,794 puts.
Soils saturated from heavy rainfall in recent weeks delayed fieldwork in most areas of the Southeast during the week ended Thursday, USDA’s Agricultural Marketing Service reported in a weekly cotton review.
Producers retrieved modules in fields firm enough to support equipment and completed winter field preparations. Some larger gins continued operations in Alabama and Georgia. Ginning in the Carolinas neared completion.
Growers in the Delta considered planting options, including new cotton varieties, and many booked some of their cottonseed for the coming season. Many focused on financial strategies while minimizing expenses in view of low commodity prices and high input costs.
The Mississippi River crested late in the period at Vicksburg, Miss., at 50.2 feet, more than 7 feet above flood stage. Flood warnings were in effect for Franklin Parish, La., and flooding of fields was widespread along river bottoms in both Mississippi and Louisiana.
Rainy weather continued to deposit more moisture throughout East Texas. Reports indicated that subsoil moisture was plentiful. A light volume of sample receipts from eastern Texas continued to be graded. Some gins completed or nearly completed operations in Kansas. In Oklahoma, fields firmed on frozen ground and module transportation was underway.
Ice and snow continued to melt in the West Texas Plains, wreaking havoc for field and gin operations. Muddy, soft fields prevented module transportation. Some gins temporarily suspended operations because of soggy gin yards. Planting wheat as a cover crop has been delayed. Sample receipts at classing offices were reduced. Some shifts were terminated.
Mostly sunny conditions with temperatures in the high 50s and mid-60s prevailed in Central Arizona. Ginning continued there and around El Paso and was completed in New Mexico.
Several inches of fresh snow fell in the Sierra Nevada Mountain range. The California Department of Water Resources recorded the snowpackΆs statewide water content at 47% of average.
Futures open interest increased 1,925 lots Friday to 184,478, with MarchΆs up 443 lots to 115,205 and MayΆs up 609 lots to 33,101. Cert stocks were unchanged at 61,141 bales.
