Weekend rains fell in the Southeast. Defoliation had expanded. Ginning began in Arkansas. Dryland yields termed disappointing in the South Delta. Classing slowed at Corpus. Samples delivered on the Plains. Yuma harvest virtually completed. San Joaquin Valley picking began.
Cotton futures settled with slight gains on thin volume Monday, bucking a red tide in U.S. stocks and other outside markets amid ongoing worries about the outlook for global growth.
- Benchmark December edged up 11 points to close at 60.75 cents, in the upper quarter of its 85-point range from down 54 points at 60.10 to up 31 points at 60.95 cents. March settled up seven points to 60.41 cents.
- Cotton clung to gains amid a rout in other commodity markets and with the Dow Jones Industrial Average down about 300 points late in the fiber crop session. Reports citing government statistics showed profits of industrial companies in China plunged 8.8% last month.
- Volume slowed to an estimated 11,700 lots from 18,182 lots the previous session when spreads accounted for 3,847 lots or 21% and EFS 770 lots. Options volume totaled 3,039 calls and 773 puts.
Rains over the weekend with more in prospect slowed or stalled defoliation and early harvesting in parts of the Southeast and Delta. Mostly dry weather prevailed on the Texas High Plains where warm, sunny conditions are in prospect in the Lubbock area until a slight chance for showers and thunderstorms returns Friday into the weekend.
Meanwhile, defoliation expanded and harvesting was underway in the earliest fields in the Southeast last week, according to a cotton review posted Friday by USDA’s Agricultural Marketing Service.
Modules accumulated on gin yards and ginning had begun in Georgia. Picking also had begun in the Carolinas in areas where dry weather had allowed defoliation. Harvest-aids also were applied in Virginia.
Defoliation gained momentum under favorable weather in the North Delta. Harvesting was expected to expand rapidly in the week ahead, weather permitting. Ginning was underway on a limited basis in southern Arkansas. The Dumas classing office began seasonal operations.
Harvesting and ginning expanded slowly in the South Delta and the Rayville classing facility began grading cotton. Producers in Louisiana and Mississippi reported that yields were lower than expected in some dryland fields.
Classing slowed to 95,404 bales from 97,954 bales the prior week at Corpus Christi, bringing the total for the season to 390,336 bales. A year ago, the USDA facility had classed 871,124 bales for the season.
Rainfall from widespread thunderstorms late in the reporting week in the West Texas Plains ranged mostly near one-half of an inch. The first new-crop samples were delivered to Lamesa and Lubbock for classing.
A tropical storm moved through southern Arizona. Harvesting was virtually completed around Yuma. Ginning gained momentum. Limited harvesting began in Central Arizona.
Clear weather allowed producers to increase defoliation in the San Joaquin Valley. Limited harvesting has begun in the southern and northern ends of the valley.
Futures open interest declined 581 lots Friday to 183,321, with DecemberΆs down 1,021 lots to 120,481 and MarchΆs up 252 lots to 46,452. Cert stocks dropped 90 bales to 45,905.
