Planting expanded in parts of Texas. Cotton reached first true-leaf stage around Yuma. Irrigation season may be worst in nearly 100 years in cotton areas of New Mexico and El Paso. Around a third of the SJV crop planted. Activities limited in the Southeast and Delta.
Cotton futures settled lower Monday amid a meltdown in commodities, led by precious metals and crude oil, and sharp losses in equities after disappointing Chinese data fanned concerns about global economic growth.
May settled down 125 points to 84.33 cents, near the low of its 201-point range from up 62 points at 86.20 to down 139 points at 84.19 cents. It opened up 23 points and nudged just above FridayΆs high early in overnight dealings before reversing to finish at a new six-week low close.
July posted the biggest loss, settling down 150 points to 86.12 cents after trading within a 208-point span from up 42 points at 88.04 to down 166 points at 85.96 cents, while December closed down 116 points to 85.18 cents, six ticks off the low of its 163-point range.
Volume slowed to an estimated 28,100 from 57,443 lots the previous session when spreads totaled 23,628 or 41%, EFS 6,750 lots and EFP 465 lots. Options volume totaled 2,696 calls and 2,645 puts.
In crop news, planting expanded in the Blackland Prairies and Edwards Plateau of Texas after beneficial rain of half an inch to 4 inches during the week ended Thursday, according to the latest review by the cotton division of USDAΆs Agricultural Marketing Service.
The insurance planting deadline is today for Brooks, Duval, Jim Wells, Kleberg, La Salle, Nueces, San Patricio and Webb counties. Planting was underway in the Upper Coastal Bend, where soil moisture profiles were improved from seasonal rainfall.
Little to no significant rainfall is on the near-term horizon on the Texas High Plains where blowing dust is forecast for Wednesday. Light snow and freezing rain deposited trace amounts of precipitation when a cold front brought a hard freeze to the Plains at midweek. Persistent winds of 20 to 40 miles per hour rapidly depleted meager moisture.
The crop made good progress around Yuma, Ariz. Extension agents reported that 75% of the crop was in the first true-leaf stage. Little to no insect pressure was reported. Winds gusting to 35 to 45 miles per hour halted planting elsewhere in Arizona early in the week.
Reports indicated this irrigation season will be the worst in nearly 100 years in cotton-growing areas of New Mexico and the El Paso region. Lack of snowfall in March affected the initial runoff outlook.
Around a third of the San Joaquin Valley crop was planted, reports indicated, most of which was in the southern valley.
Outside activities were limited in many areas of the Southeast as fields remained too soggy from consistent moisture in recent weeks to support equipment. Cool, wet conditions have delayed corn planting, and reports indicated some acreage could switch back to cotton.
A cold front late in the week brought heavy rain to the Delta, where ratings showed both topsoil and subsoil moisture mostly adequate to surplus throughout the region.
Futures open interest fell 15,482 lots Friday to 195,147, with MayΆs down 20,475 lots to 33,794, JulyΆs up 4,267 lots to 109,420 and DecemberΆs up 712 lots to 49,573.
Certificated stocks grew 7,031 bales to 456,559. There were 7,040 newly certified bales, nine bales decertified and 26,624 bales awaiting review.
World values as measured by the Cotlook A Index gained 90 points Monday morning to 93.10 cents. The index premium to FridayΆs May futures settlement narrowed two points to 7.52 cents.
