By admin       2018-05-08

Final U.S. 2017-crop classing figures showed 19.64 million RB of upland, up 22% from last season. Tenderable cotton fell to 67%. Pima classing totaled 676,965 RB, up from 618,030. Cotton futures reversed off new contract highs to close lower through the December contract and higher beyond that Monday. July lost 91 points to close at 85.99 cents, just off the low of its 217-point range from up 118 points at 88.08 cents to down 99 points at 85.91 cents. May, facing its last trading day on Tuesday, settled even with July at 85.99 cents, up 36 points. It touched a new contract high at 87.69 cents. December closed down 24 points at 80.33 cents, in the lower quarter of its 129-point range from 80.21 cents to 81.50 cents. October settled down 20 points at 82.65 cents and the other contracts closed up five to 65 points. July at the high had jumped 476 points from last week’s low and some profit-taking may have ensued after the latest government data showed trend-following funds have increased their net longs four straight weeks. Volume rose to an estimated 40,700 lots from 33,978 lots on Friday when spreads accounted for 9,783 lots or 29% and EFP 52 lots. Options volume increased to 19,332 lots (9,411 calls and 9,921 puts) from 17,449 lots (14,563 calls and 2,886 puts). On the crop scene, U.S. upland classing of 37,282 running bales last week brought the total for the season to 19,639,800 RB, USDA’s final 2017-crop quality report of the season showed. This is up 22% from 16,157,388 RB of upland classed last season. Classing of 676,965 RB of Pima, up from 618,030 RB graded last season, boosted the 2017-18 all-cotton total to 20,316,765 RB, up 21% from 16,775,418 RB in 2016-17. Tenderable upland fell to 67% from 71.9%. Eighteen gins submitted classing samples for the week, including those from 22,638 RB from Oklahoma, 10,395 RB from Texas and 4,249 RB from Kansas. For the season, USDA classed upland from 534 gins and Pima or extra-long staple cotton from 26 gins. Mostly open weather conditions favored increased planting activity in the Southeast and Delta during the reporting week, USDA’s Agricultural Marketing Service indicated in a cotton review. Seedlings were emerging in the earliest planted fields in Georgia and planting was in full swing. Planting was underway in Alabama but has been delayed slightly by cool, wet conditions in recent weeks. Planting was expected to increase after a slow start in the North Delta, but a storm front was forecast to bring thunderstorms and scattered rain showers to the region in the near term. Soil temperatures were in the optimal range for good germination in most of the South Delta, but some fields in low-lying areas hadn’t dried enough to support equipment. Stands advanced to squaring in the Texas Coastal Bend and Upper Coast. Some cotton was replanted in fields hit by winds as high as 70 mph. Recent rain helped alleviate droughty conditions in some Rio Grande Valley fields, but more was needed. Stands had begun to emerge in East Texas, but planting was behind scheduled because of cool April weather. Strong winds raked the West Texas Plains. Isolated areas got some rain, but the region remained in the grip of extremely dry conditions. Some producers considered dusting seed into dry soils on the expectation that May would bring more traditional rainfall. The crop advanced under hot, dry weather in the Desert Southwest. Strong afternoon winds dried top soils. Some Central Arizona producers removed hard-crusted soil caps to allow seedlings to emerge. Some planted in the mornings to keep seedbeds from drying out from afternoon winds. Cotton made excellent progress in California’s San Joaquin Valley. Certified stocks declined 2,463 bales to 73,202 bales. There were 730 newly certified bales and 3,166 bales decertified. Open interest expanded 5,773 lots to 281,665 lots on Friday, with May’s up 13 lots to 26 lots, July’s up 3,684 lots to 143,425 lots and December’s up 1,386 lots to 110,362 lots.

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