Locally heavy rain fell in cotton areas of the Southeast. Delta crop made good progress. Plains producers battled weeds. Excessive heat hit the Desert Southwest. Lack of water remained a major concern in the San Joaquin Valley.
Cotton futures settled higher in slowed dealings within tight trading ranges Monday, lifted partly by suspected fresh business over the weekend.
Benchmark December closed up 53 points to 65.88 cents, in the upper quarter of a 73-point inside-day range from down three points at 65.32 to up 70 points at 66.05 cents, posting a new intraday contract low and low close the previous session but settled well off the low.
Mills bought steadily on the way down. Back-to-back weeks of strong export sales totaling 715,300 running bales boosted 2014-15 commitments to 1.103 million bales more than forward sales a year ago and to already 34% of the USDA forecast. Exports are projected down 2.9%.
Volume slowed to an estimated 12,900 from 21,634 lots the previous session when spreads accounted for 5,030 lots or 23% and EFP 115 lots. Options volume totaled 3,570 calls and 9,157 puts.
Widespread showers and thunderstorms brought locally heavy rainfall in cotton areas of the Southeast from Alabama to the coastal Carolinas during the latest reporting week, the cotton division of USDAΆs Agricultural Marketing Service said Friday.
Accumulating precipitation totals measured 1 to 4 inches as a low pressure system lingered over the region and produced afternoon downpours accompanied at times by strong wind. Lighter, scattered rain fell in central North Carolina and Virginia.
Despite the extensive rainfall, abnormally dry patches expanded in parts of central Alabama and south Georgia. An unusually strong cold front moderated temperatures throughout the region. Record cool daytime highs in the 60s to lower 70s were registered in several areas.
Showers brought about one-half inch of precipitation to isolated areas of the North Delta and less than an inch to most of the South Delta. Hot temperatures helped the crop make good progress. Boll counts were described as very good in Tennessee. Producers irrigated to maintain normal crop development in drier parts of Louisiana.
In Texas, bolls popped open in the Coastal Bend and growers prepared for harvest in the Rio Grande Valley. Reports indicated plants were loaded with bolls in Central Texas and above-average yields were expected. Plant growth regulators were applied. Insect pressures were low.
Hot, dry conditions prevailed in the west Texas Plains. Northwestern areas and eastern New Mexico got a trace to 4 inches of beneficial rain. Growers applied plant growth regulators and herbicides. Aerial applicators were active. Insect pressures were light, though some fields were infested with fleahoppers. Weeds required constant attention, with hoe crews finding plenty of work.
In the Desert Southwest, excessive heat warnings were issued for central and west Arizona as temperatures hit 114 degrees. Producers irrigated cotton to minimize heat stress. Bottom bolls were cracking open around Yuma. Insect pressures were light. Early planted fields reached cutout. Cotton in the Safford Valley made excellent progress.
Lack of water remained a major concern in the San Joaquin Valley. Planting plans next year will depend heavily upon available rainfall and snowpack in October through December.
Futures open interest gained 1,754 lots Friday to 158,772, with DecemberΆs up 177 lots to 122,086 and MarchΆs up 1,003 lots to 28,224. Cert stocks declined 11,654 bales to 164,719.
World prices as measured by the Cotlook A Index fell 65 points Monday morning to 80.50 cents. The premium to FridayΆs October futures settlement widened 59 points to 15.34 cents.
Forward A Index values for 2014-15 also dropped 65 points, falling to 73.80 cents. This left the discount to the index for 2013-14 at 6.70 cents and widened the premium to FridayΆs December futures close by 5 points to 8.45 cents.
