Harvesting has begun in the Rio Grande Valley. Around an estimated 10% of the planted dryland acres in Lubbock classing area made a stand. Wet weather hampered crop management in the Southeast. Fields neared cutout around Yuma. Insect hot spots treated in SJV.
Cotton futures settled at an eight-session low close on thin dealings Monday amid follow-through selling from last weekΆs loss.
Benchmark December closed lower for a second day, finishing off 41 points to 84.71 cents, in the lower quarter of its 103-point range from up 47 points at 85.59 to down 56 points at 84.56 cents. March dropped 69 points to close at 82.71 cents.
Concerns about demand amid worries about a slowdown in ChinaΆs economy, the worldΆs largest cotton consumer, may have contributed to the losses as physical markets remained quiet.
Volume slowed to an estimated 11,100 from 14,726 lots the previous session when spreads accounted for 3,225 lots or 22% and EFP four lots. Options volume totaled 3,456 calls and 3,746 puts.
Harvesting has begun in the TexasΆ Rio Grande Valley, according to a weekly review by the cotton division of USDAΆs Agricultural Marketing Service. Most harvesting is expected in two weeks, reports indicated.
Defoliants were applied on some fields. Later-planted fields reached cutout. The crop advanced rapidly under hot, dry weather and exhibited a substantial boll load. In East Texas, recent rainfall improved dryland yield potential to an expected two bales per acre, compared with around 1.5 bales last year.
Producers on the Texas High Plains restarted irrigation as hot, sunny weather dried fields after rains the prior week. Reports indicated around 10% of the planted dryland acres made stand in the Lubbock classing office territory and 3% to 5% in the Lamesa classing area. Three days of cloudy weather caused an estimated 5% to 20% natural square shed.
Wet conditions hampered crop management in some areas of the Southeast as producers were unable to apply fungicides and herbicides. More producers employed airplane applications. The crop benefited from windows of warm, sunny weather but hot, dry conditions were needed. Stink bug populations were developing and treatments were underway.
Thundershower activity throughout the week brought up to 3 inches of beneficial rain to the developing crop in the North Delta. Scattered showers deposited up to an inch in most of the South Delta. Some dryland fields were blooming out the top and nearing cutout. Pressure from plant bugs was light in Louisiana and moderate in Mississippi.
Monsoon activity increased humidity in the Desert Southwest. Yuma, Ariz., got about 0.75-inch of rain. Fields neared cutout. Open bolls were on the bottom and blooms on the top of plants. Boll set and retention were good. Defoliation was to begin in three to four weeks. Cotton made excellent progress in Central Arizona and the Safford Valley.
Fields were beyond peak bloom in the San Joaquin Valley. The crop was maturing rapidly because of previous heat spells. Some fields approached cutout, while some growers used well water to irrigate cotton.
Specialists helped growers manage limited water availability. Hot spots of aphids, lygus and spider mites were treated throughout the valley.
Futures open interest dipped 233 lots Friday to 167,008, with DecemberΆs down 1,100 lots and MarchΆs up 855 lots.
Certificated stocks fell 7,759 bales to 152,457. There were 16 bales awaiting review.
World values as measured by the Cotlook A Index slid 90 points Monday morning to 92.55 cents. The premium to FridayΆs December futures settlement narrowed three points to 7.43 cents.
