Tightening U.S. supply perceptions offered support. Valley growers sprayed for aphids. More rain fell Sunday on Plains. Pima acres expected to shift to upland in Texas. Upland under loan fell to 2.83 million RB.
Cotton futures surged to strong closing gains Monday, led by most-active July on a jump to a 10-session intraday high.
July settled up 163 points to 78.17 cents, stair-stepping from an unchanged opening at 76.54 cents to finish near the high of its 178-point range up to 78.32 cents. It posted its highest intraday print and highest close since March 31.
May, with four trading sessions left before first notice day, finished up 141 points to 77.03 cents, trading within a 201-point span from 75.18 to 77.19 cents. December gained 82 points to close at 74.24 cents, its highest finish since March 28 and near the high of 89-point range from 73.44 to 74.33 cents.
Perceptions of tightening U.S. supplies offered support along with the latest on-call report showing a net call difference of 46,531 old-crop lots (4.653 million bales) of buy-side fixations still to be made in the May and July contracts. First notice day for July is June 26.
Dollar weakness also may have lent support. Volume slowed to an electronically estimated 35,787 lots from 51,476 lots the prior session when spreads accounted for 39,030 lots or 76%, EFP 548 lots and EFS 250 lots.
On the crop scene, cotton stands advanced in the Texas Rio Grande Valley and producers sprayed for aphids and fleahoppers last week, according to a weekly review by USDAΆs Agricultural Marketing Service.
Whiteflies and spider mites also were reported. Many stands had begun to square. Planting continued elsewhere in South Texas. Widespread rainfall interfered with outside activities. The heaviest amounts fell in the Coastal Bend.
In eastern Texas, rainfall added to already saturated soils. Heavy thunderstorms also brought hail and flooded roadways. Fields were too soggy to support equipment. Planting was expected to start again as soon as fields dried.
Widespread thunderstorms brought much-needed moisture to the West Texas Plains, encouraging industry people ahead of planting. Additional scattered thunderstorms brought locally heavy rainfall on Sunday.
Brownfield southwest of Lubbock reported 3.37 inches in the 24 hours to 8 a.m. CDT Monday, Tahoka to the south measured 1.12 inches, Post just below the Caprock got 1.15 inches and Silverton to the north recorded 1.09 inches. Amounts elsewhere were mostly skimpy. Lubbock got only a trace.
Final crop insurance planting dates range from May 31 in the northern Texas High Plains and eastern New Mexico to June 20 in the Rolling Plains and southern Oklahoma, according to USDAΆs Risk Management Agency.
Pima cotton made good progress around Yuma, Ariz. Stands had emerged in CaliforniaΆs San Joaquin Valley but cool weather hampered progress. Some fields were under water from snow melt.
Some fields intended for the extra-long staple cotton around El Paso are expected to be planted in upland because of the lateness of receiving irrigation water allocations and cool weather, reports indicated.
Meanwhile, U.S. upland cotton under loan declined 318,864 running bales to 2.83 million during the week ended last Monday, the latest USDA figures showed.
Repayments were made on 328,232 RB and entries were 9,368 RB. Upland loans outstanding included 251,667 RB of Form A issued to individual growers and 2.579 million RB issued to marketing cooperatives or loan servicing agents.
Futures open interest declined 3,740 lots to 242,112, with MayΆs down 13,067 lots, JulyΆs up 6,254 lots to 111,062 and DecemberΆs up 3,038 lots to 88,073. Certified stocks, which had dropped 8,808 bales on Thursday, declined an additional 1,496 bales on Friday. Awaiting review were 1,428 bales at Galveston.
