Rainfall expected to slow quickening harvesting on the Texas Plains. Latest weekly figures showed 326,164 running bales of the regionΆs crop have been classed, compared with 483,368 RB a year ago.
Cotton futures settled lower for a second day Tuesday, finishing at a 15-session low close in spot December in the face of weakness in the U.S. dollar index and rainfall headed for the Texas Plains.
December settled down 66 points to 68.20 cents, its lowest close since Oct. 11, the day before the last USDA supply-demand report. It finished near the low of its 82-point range from up six points at 68.92 to down 76 points at 68.10 cents, just above last weekΆs low of 68.08.
March lost 71 points to close at 68.66 cents, while December 2017 dropped 56 points to settle at 68.60 cents.
Volume rose to an estimated 33,896 lots from 33,424 lots the previous session when spreads accounted for 13,436 lots or 40% and EFP 171 lots. Options volume totaled 4,155 calls and 4,468 puts.
Rainfall beginning Wednesday and continuing several days in the Texas High and Rolling Plains is expected to slow harvesting that has been picking up momentum across the region.
Cumulative amounts are expected to range from roughly half an inch to about 1.50 inches, with some locally heavy totals reaching 2 inches or more. The rainfall is expected to be fairly widespread.
Chances for showers and thunderstorms in the Lubbock area have increased to 40% Wednesday and 60% Wednesday night, diminishing to 30% Thursday and 20% Thursday night before rising back to 30% Friday. Slight chances of mostly light rainfall then are forecast to linger into Monday.
Rainfall at Lubbock since Sept. 1 has totaled 2.52 inches, down from the normal of 4.44 inches and 4.78 inches a year ago. Precipitation for the year has totaled 12.44 inches, down 5.07 inches or 29% from the normal of 17.51 inches and down 54% from 27.07 inches last year.
Though not welcome during the cotton harvest, fall rainfall is important in helping to build subsoil moisture for the next crop in the semi-arid region. Precipitation during the winter months is typically low.
Classing facilities at the High Plains offices at Lubbock and Lamesa graded 138,364 and 80,532 bales, respectively, during the week ended Thursday, the latest USDA weekly figures showed. This brought the totals for the season to 177,235 bales at Lubbock and 125,255 bales at Lamesa.
The Abilene office in the Rolling Plains classed 15,842 bales of West Texas cotton for the week and 23,674 bales for the season along with a respective 22,706 bales and 38,816 bales of Oklahoma cotton.
Classing of High and Rolling Plains cotton for the season at the three offices totaled 326,164 running bales, compared with 483,368 RB a year ago. This region accounts for the large bulk of the 70% of the Texas crop that remained on the stalk as of Sunday.
The USDA last month estimated production on the High and Rolling Plains at a combined 4.98 million statistical 480-pound bales, up from 4.696 million SB last season.
Futures open interest fell 1,318 lots Monday to 260,741, with DecemberΆs down 2,908 lots to 133,089 and MarchΆs up 1,407 lots to 87,454. Certified stocks increased 2,643 bales to 33,498. There were 3,083 newly certified bales and 440 bales decertified.
