Planting reached 6% completed in Texas, which is projected to account for 87% of the U.S. all-cotton acreage expansion and 81% of the upland increase. Interest in Pima cotton reported in South Texas district.
Cotton futures fell to sharp nearby closing losses, trading in the red throughout the session, as intercrop differences narrowed Tuesday.
Spot May lost 145 points to close at 92.07 cents, in the lower quarter of its 141-point range from down 29 points at 93.23 to down 170 points at 91.82 cents. It closed below lows of the prior two sessions.
July settled off 105 points to 92.50 cents, just below the midpoint of its 102-point range, and December closed down a modest 13 points to 79.87 cents, near the high of its 93-point range.
Volume increased to an estimated 28,000 lots from a final 21,978 lots the previous session when spreads totaled 11,532 lots or 53% and EFP 55 lots. Options volume totaled 999 calls and 1,079 puts.
Growers in Texas had planted 6% of their cotton acreage by Sunday, matching progress a year ago and a percentage point behind the five-year average, USDA reported after the market closed Monday.
The USDAΆs prospective plantings report earlier Monday showed Texas growers intend to boost their upland plantings by 600,000 acres from a year ago, accounting for 81% of the U.S. upland increase of 737,000 acres to 10.943 million.
With U.S. extra-long staple acres expected to decline 21.4% to 158,000, the projected all-cotton acreage gain in Texas would amount to 87% of the combined 694,000-acre increase nationally of upland and Pima combined to 11.101 million acres.
Planting gained momentum in the Lower Rio Grande Valley and reached 50% to 60% done by late last week, according to a weekly review by the cotton division of USDAΆs Agricultural Marketing Service.
Some cotton was up to a stand. Wet, cold conditions had adversely affected some of the earlier-planted cotton. Initial planting began in the Coastal Bend.
Growers in the northern South Texas crop reporting district showed significant interest in planting Pima or ELS cotton. Reports indicated most of that acreage would be in the Winter Garden area.
Elsewhere, planting was almost completed around Yuma, Ariz., and Blythe, Calif., and seedlings were making excellent progress. Planting expanded into Central Arizona. One gin there continued to process 2013-crop cotton.
Midweek showers brought accumulations of a tenth of an inch to half an inch in the San Joaquin Valley. Planting continued. A water rally was spotlighted a drought update in Tulare.
Showers and thunderstorms are foreseen this weekend in the Texas High Plains by some weather models, with the National Weather Service at Lubbock currently rating chances as slight.
A low potential for thunderstorms was seen for Tuesday afternoon in the southern Rolling Plains, mainly in ranch country. Any thunderstorms that do develop were expected to move quickly to the east and northeast.
Futures open interest grew 906 lots Monday to 183,763, with MayΆs down 2,343 lots to 94,251, JulyΆs up 2,565 lots to 45,759 and DecemberΆs up 648 lots to 39,950. Certificated stocks declined 86 bales to 254,197.
World values as measured by the Cotlook A Index dropped 35 points Monday morning to 97.75 cents. The premium to MondayΆs May futures settlement narrowed 13 points to 4.23 cents.
