Trade estimates on U.S. plantings averaged 13.781 million acres, up from March intentions of 13.47 million acres. Rains of up to 18 inches in South Texas showed hit-and-miss cotton pattern. Scattered rains helped irrigated cotton on the Texas Plains.
Cotton futures finished on mostly slight losses beyond maturing July Monday, influenced partly by a broad selloff in U.S. stocks and losses in most commodities as trade tensions between the United States and other leading economies continued to escalate.
December closed down 38 points to 84.92 cents, in the lower third of its 182-point range from up 92 points at 86.22 cents to down 90 points at 84.40 cents. July finished up 51 points to 85.94 cents, trading within a 220-point range between 84.20 cents and 86.48 cents. The other contracts were up one point to down 26 points.
Volume dipped to an estimated 17,100 lots from 18,406 lots the previous session when spreads accounted for 6,696 lots or 36%, EFP 51 lots and EFS nine lots. Options volume slipped to 5,606 lots (3,121 calls and 2,485 puts) from 6,066 lots (3,826 calls and 2,664 puts).
Trade estimates on the U.S. planted area averaged 13.781 million acres, up from March intentions of 13.469 million acres, in a Bloomberg survey of cotton analysts and traders, sources said.
Producers planted 12.61 million acres last year and harvested 11.10 million acres. The report Friday will include actual plantings as of early June as well as estimates of cotton remaining to be planted.
Higher cotton prices since the March survey of producer intentions are expected to boost plantings. However, a large eventual abandonment also is expected, primarily because of drought in the Southwest, where the March intentions of 8.1 million acres, up from 7.6 million last year, represented 61% of the total intended upland area.
Meanwhile, rains of up to 18 inches in South Texas last week showed a hit-and-miss pattern in cotton areas following a protracted period of severe drought, flooding some fields and bringing much-needed to others.
The rains came too late to benefit dryland cotton, USDA’s Agricultural Marketing Service noted in a weekly review. More rain was in the short-term forecast. There were no reports of damage to emerged cotton, though some fields in the Rio Grande Valley experienced flooding.
Whitefly populations were on the rise and were treated as needed. Cotton neared the blooming stage in the Blacklands, progressing in some areas and struggling in others that lacked rainfall, and reached full bloom in the Coastal Bend. Thriving cotton fields could be found in the Upper Coast.
Scattered rains of up to 5 inches to less than an inch in the West Texas Plains helped irrigated crops, but most dryland fields continued to struggle. Many fields weren’t planted in the southern Rolling Plains and heavy dryland abandonment is expected in the High Plains.
Fields needing replanting likely won’t be replanted to cotton but replaced with sorghum or other crops, producers indicated. Cotton across the region ranged from not emerged to six and seven true leaves. Fields were irrigated and neared blooming in the northern High Plains.
Certified stocks increased five bales to 86,072 bales on Friday, the daily exchange report showed. Open interest declined 2,6643 lots to 259,282 lots, with July’s down 2,196 lots to 932 lots and December’s down 550 lots to 184,308 lots.