Uncertainties linger about crop damage in Southeast. Moisture headed for West Texas. Limited defoliation noted in South Georgia. North Delta eyes above-average yields. Potential for record yields diminished in South Delta. Classing slowed at Corpus. Most of West Texas appreciated rains. Ginning began at Yuma. San Joaquin Valley crop advanced.
Cotton futures surged above highs of the prior two weeks and closed on triple-digit gains across the board Tuesday, with benchmark December at its highest finish in 16 sessions.
December closed up 145 points to 69.24 cents, near the high of its 175-point range from down 16 points at 67.63 to up 159 points at 69.38 cents. This was its highest finish since Aug. 12 and its highest intraday price since Aug. 19.
Nearby October closed up 155 points to 69.06 cents, March gained 126 points to 69.38 cents and December 2017 added 135 points to 68.90 cents.
Uncertainties lingered about the ultimate impact on cotton in the Southeast from Tropical Storm Hermine, which slammed into Florida as a Category 1 hurricane early Friday.
Separately, rich moisture from Hurricane Newton on the West Coast headed for the West Texas Plains. Newton, which made landfall Tuesday morning on the southern tip of MexicoΆs Baja California peninsula, could even reach the Arizona border as a tropical storm, forecasts indicated.
Rain chances in the Lubbock area were rated at 40% Tuesday and Wednesday, diminishing to 20% Thursday and Friday and lingering into Saturday. Locally heavy rain and minor flooding were expected.
Volume rose to an estimated 22,888 lots from 16,901 lots the previous session when spreads accounted for 4,298 lots or 25%, EFP 160 lots and EFS 16 lots. Options volume totaled 1,785 calls and 2,826 puts.
A limited amount of cotton was defoliated in the earliest planted fields of South Georgia prior to the arrival of Hermine, USDAΆs Agricultural Marketing Service said in a weekly review Friday.
Producers continued to scout fields and treat susceptible areas for infestations of stink bugs and bollworms. Silverleaf whiteflies were at treatable levels in some later planted cotton. Spider mites were seen in northeastern Alabama where dry conditions persisted.
Sunny to partly cloudy conditions prevailed in most of the Carolinas and Virginia during the reporting period. Producers treated later planted fields for bollworms and stink bugs, but overall insect pressure declined. Blooming advanced at a rapid pace and much of the crop neared cutout.
Hot, dry weather dominated in the North Delta. Many fields in Tennessee have bloomed out the top, while those in Missouri were behind the average pace of development. Widespread defoliation was expected to begin in about a week in Tennessee and about two weeks in Missouri. Above-average yields are expected for the region.
Extension specialists said potential yield losses to boll-lock in the South Delta varied from area to area. There was general agreement that the potential for record yields had diminished — except on a field-by-field basis — owing to inclement weather. Defoliation was underway on some early planted and dryland cotton and will be more difficult in fields with regrowth in the tops of plants.
Producers were eager to finish harvesting and transport modules to gin yards ahead of rainy weather in the Texas Rio Grande Valley. Strong thunderstorms brought widespread beneficial rain early in the period. Untimely rain on open bolls continued to cause problems elsewhere in South and East Texas and the Winter Garden. Regrowth has caused issues.
Classing at Corpus Christi slowed to 80,765 bales from 118,303 bales the prior week. The total for the season reached 396,509 bales, up from 116,167 bales a year ago, with tenderable cotton accounting for 85.5%, up from 76.7%.
Timely rains of up to 6 inches were appreciated in most of West Texas. A few areas received excessive rains totaling more than 9 inches. Boll loads were good. Fields were monitored for regrowth and late-season foliar disease. The crop needed sunshine and warmer temperatures.
Defoliation and harvesting continued uninterrupted around Yuma, Ariz. Ginning commenced. Hot conditions pushed the crop toward completion in Central Arizona.
Sunny, warm conditions advanced the San Joaquin Valley crop. Defoliation was expected to begin around the third week of September.
Futures open interest increased 834 lots Friday to 229,477, with DecemberΆs up 156 lots to 154,616 and MarchΆs up 625 lots to 49,635. Certified stocks grew 270 bales to 42,428.
