Weed management caused concern in the Southeast. Spider mites and plant bugs increased in the Delta. First bale harvested in the Rio Grande Valley. Recent rain brought encouragement in the Texas Plains. Heat stress monitored in the Desert Southwest. Producers in SJV concerned about water availability.
Cotton futures rallied from an early dip to just below lows of the previous two sessions to post a strong closing gain in a bullish outside-range reversal in most-active December Monday.
December settled up 153 points to 85.54 cents, above last weekΆs high and its highest finish since June 19. It closed three ticks off the high of its 237-point range from down 81 points at 83.20 to up 156 points at 85.57 cents. Only a handful of lots traded in maturing July and in October.
Gains in global equity markets and growth in U.S. manufacturing may have offered background support for cotton amid tight supply prospects ahead of the volume movement of the late new crop. The Institute for Supply Management said its factory index increased to 50.9 in June from 49 in the previous month.
Volume increased to an estimated 15,700 lots from 12,441 lots the previous session when spreads totaled 2,149 lots or 17% and EFP 2,184 lots. Options volume totaled 2,048 calls and 1,586 puts.
Intermittent showers have brought generally a quarter to half an inch of rain to scattered areas of the Southeast as the crop benefited under warmer conditions, according to a weekly review by the cotton division of USDAΆs Agricultural Marketing Service.
The crop advanced rapidly in Alabama and was squaring. Insect pressure was light, though some acreage was treated for spider mites and plant bugs in Alabama and Georgia. Weed management was the main concern because of excessive moisture in recent weeks. Many fields required multiple applications of herbicide.
Crop development was variable in the Carolinas and Virginia. Reports indicated the crop was two to four weeks behind in some areas.
Warm, clear conditions prevailed in the North Delta. Producers were irrigating wherever possible. The crop made excellent progress. Spider mite and plant bug populations increased and fields were treated as needed. A few cases of herbicide damage from improperly blended tank mixes were observed in northeastern Arkansas.
Favorable growing conditions helped the crop to make good progress in the South Delta. Producers were hoping for rain to supplement irrigation. Some fields were blooming. Producers used a variety of techniques to control pigweed, including pulling and chopping weeds by hand.
The first bale of the season was harvested near Santa Rosa in TexasΆ Lower Rio Grande Valley. Ginning was expected to start in three to four weeks. Some dryland fields will produce yields.
Recent rain encouraged producers in the West Texas Plains. The industry was hopeful the drought had begun to subside. Timely rain will be required for continued plant development. Fertilizer and herbicide applications were underway.
Temperatures soared amid warnings of excessive heat in the Desert Southwest. Growers monitored for heat stress and managed with timely irrigations. The crop made good progress around Yuma and in central Arizona. Some early planted fields showed good boll-setting. The extreme heat affected some fields that were replanted in June.
The crop made excellent progress in the San Joaquin Valley. Most fields reached the blooming stage. Insect pressures were minimal and hot spots were treated as needed. Producers were concerned about irrigation water availability as the growing season progresses.
Futures open interest dipped 332 lots Friday to 156,479, with JulyΆs down 137 lots to 1,848 and DecemberΆs down 682 lots to 137,968.
Certificated stocks grew 11,012 bales to 623,467. Awaiting review were 54,646 bales for a possible total of 678,113 bales.
World values as measured by the Cotlook A Index were unchanged Monday morning at 91.30 cents. The index premium to FridayΆs futures settlements widened 42 points to 8.59 cents to July and narrowed 13 points to 7.29 cents to December.
