Cotton Slips From Early Gains to Close Lower

Texas classing of 197,093 bales trailed 556,025 bales a year ago. Crop on High Plains estimated at 3.95 million bales, up 21% from last year. Defoliants applied in Alabama and Georgia. Harvest began in South Delta. Strong monsoon hit Arizona. Skies turned smoky in San Joaquin.

Cotton futures retreated from early gains to finish in the red in slowed trading Monday as weaker-than-expected factory output data out of China reignited concerns about the countryΆs economy.

Benchmark December completed an inside day down 58 points to 62.55 cents, near the low of its 127-point range from up 57 points at 63.70 to down 70 points at 62.43 cents. March also closed down 58 points, settling at 62.33 cents.

Volume slowed to an estimated 16,900 lots from 31,342 lots the prior session when spreads accounted for 8,581 lots or 27%, EFS 203 lots and EFP 20 lots. Options volume totaled 526 calls and 1,118 puts.

Some gins in the Rio Grande Valley and South Texas neared the end of their seasons during the week ended Thursday, according to a weekly cotton review by USDAΆs Agricultural Marketing Service.

The Corpus Christi classing office expanded sample hauling routes to some gins that initiated operations in the Blackland Prairies.

Classing of 80,977 bales brought the total for the season to 197,093, down from 556,025 bales graded a year ago. Cotton tenderable on futures contracts slipped to 64.4% for the week and 7l.6% for the season from the prior weekΆs 68.4% and 76.7%, respectively. A year ago, tenderable cotton was 77.2% for the week and 78.2% for the season.

Isolated thunderstorms benefited the crop in a few areas of the West Texas Plains and helped to finish top bolls. Some areas received up to an inch of rain. Dryland yields in some High Plains counties were expected to average a bale per acre.

Producers prepared to apply boll openers and defoliants this week in the southern High Plains. Initial ginning could begin week after next.

The USDAΆs National Agricultural Statistics Service increased its forecast the High Plains crop by 280,000 bales to 3.95 million, generally in line with area industry estimates and up 21% from last year. This would be the regionΆs largest crop since 2010.

Acres for harvest were raised 210,000 to 3.14 million, reflecting an abandonment of 7.3%, down from 17.3% last season, and yields were projected to average 636 pounds, up from 589 pounds in 2014.

The High Plains crop is estimated at 69% of the Texas output and 31% of the U.S. upland production. Growers in the adjoining Rolling Plains are expected to harvest 890,000 bales, up from 817,300 bales last season.

Ginning of Texas cotton totaled 104,500 running bales by Sept. 1, down from 366,500 bales a year ago, 132,000 in 2013 and 470,800 in 2012, NASS reported Friday.

Elsewhere, defoliation was underway and picking had begun on a limited basis in the earliest-planted dryland fields in Alabama and Georgia. Defoliation also had begun in a few fields in the Carolinas.

Virtually all fields had been released from crop protection chemicals in the North Delta and some defoliation was underway in southern Arkansas. Limited harvesting had begun in the South Delta.

Strong monsoon activity hit near Yuma, Ariz., on Sept. 8, dumping 4 to 5 inches of rain in a two-hour period, almost 2 inches more than the areaΆs annual rainfall. Harvesting was 75% completed. Yields were exceptional, with some fields averaging three bales. Ginning began.

San Joaquin Valley skies were smoky from wildfire in the Hume Lake area. Temperatures of 103 to 106 degrees were prevalent and extremely dry conditions persisted. The crop made good progress.

Futures open interest gained 479 lots Friday to 179,057, with DecemberΆs down 779 lots to 121,166 and MarchΆs up 1,066 lots to 44,491. Cert stocks declined 114 bales to 58,358.