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USDA Weekly Cotton

   

 
 
Mp_cn812 
May 19,  2017
Weekly Cotton Market Review 
 
 
 


Average quotations were 420 points higher than the previous week, 
according to the USDA, Agricultural Marketing Service’s Cotton and 
Tobacco Program. Quotations for the base quality of cotton (color 41, 
leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 
81.0-81.9) in the seven designated markets averaged 78.53 cents per 
pound for the week ending Thursday, May 18, 2017. This is the highest 
weekly average since June 19, 2014 when the average was 79.26 cents. 
The weekly average was up from 74.33 last week and 59.81 cents 
reported the corresponding period a year ago.  Daily average quotations 
ranged from a season high of 81.76 cents Monday, May 15 to a low of 
76.56 cents Thursday, May 18.  Spot transactions reported in the 
Daily Spot Cotton Quotations for the week ended May 18 totaled 4,198 
bales. This compares to 3,507 bales reported last week and 5,849 
spot transactions reported the corresponding week a year ago. Total 
spot transactions for the season were 1,560,874 bales compared to 
1,437,971 bales the corresponding week a year ago. The ICE July 
settlement prices ended the week at 79.24 cents, compared to 79.18 
cents last week. 


Prices are in effect from May 19-25, 2017 
    
Adjusted World Price (AWP)        72.44        ELS Competitiveness Payment     0.00 
Loan Deficiency Payment (LDP)       0.00       Fine Count Adjustment 2016 Crop    0.09 
Coarse Count Adjustment (CCA)       0.00       Fine Count Adjustment 2017 Crop    0.24 
Source:  Farm Service Agency, FSA, USDA 


USDA ANNOUNCES SPECIAL IMPORT QUOTA #4 
FOR UPLAND COTTON 
May 18, 2017 
 
The Department of Agriculture's Commodity Credit Corporation announced 
a special import quota for upland cotton that permits importation 
of a quantity of upland cotton equal to one week’s domestic mill use. 
The quota will be established on May 25, 2017, allowing importation 
of 13,588,518 kilograms (62,411 bales) of upland cotton.  Quota number 
4 will be established as of May 25, 2017, and will apply to upland 
cotton purchased not later than August 22, 2017, and entered into 
the U.S. not later than November 20, 2017. The quota is equivalent 
to one week's consumption of cotton by domestic mills at the 
seasonally-adjusted average rate for the period December 2016 
through February 2017, the most recent three months for which 
data are available. Future quotas, in addition to the quantity 
announced, will be established if price conditions warrant.  


Regional Summaries 


Southeastern Market 
 
Spot cotton trading was slow.  Supplies and producer offerings 
were light.  Demand was light.   Average local spot prices 
were higher. Trading of CCC-loan equities was inactive.   
     
Widespread thunderstorms brought from trace amounts to around one-half 
of an inch of precipitation to areas across the lower Southeast early 
in the period, with slightly heavier accumulations observed along Atlantic 
coastal areas.  Producers welcomed  the moisture in areas of southeast 
Alabama and    south Georgia where moderate-to-extreme drought conditions 
persisted.  Planting activity advanced the remainder of the period as 
hot and dry conditions dominated the weather pattern with daytime highs 
in the upper 70s to lower 90s.  Sporadic rainfall caused stands to 
emerge unevenly in some dryland fields in south Georgia, according to 
local experts. Producers increased irrigation schedules in fields that 
experienced below-average rainfall. Similar conditions were observed in 
the Carolinas and planting was briefly interrupted as weekend thunderstorms 
brought around one-half of an inch to one inch of moisture to most cotton 
growing areas.  Fieldwork resumed as warm and sunny weather prevailed 
during the remainder of the week.  Good emergence was observed in the 
earliest-planted fields and producers were encouraged to monitor 
seedlings for the presence of thrips; no heavy insect pressure was 
reported.  In Virginia, a recent period of wet weather and unseasonably 
cool weekend temperatures in the mid-50s to mid-60s delayed planting.  
Fieldwork advanced during the week as clear and warm conditions returned.  
According to the National Agricultural Statistics Service’s Crop Progress 
report released May 15, planting was 59 percent completed in Alabama, 52 
in South Carolina, 40 in Virginia, 38 in Georgia, and 31 percent completed 
in North Carolina. 
 

South Central Markets  
 

North Delta 

Spot cotton trading was inactive.  Supplies of available cotton were 
light.  Demand was light.  Average local spot prices were higher. Trading 
of CCC-loan equities was inactive. No forward contracting was reported.  
     
Scattered showers brought from trace amounts to around one-half of 
an inch of moisture to areas of northeast Arkansas, west Tennessee, and 
the Bootheel of Missouri at the beginning of the period.  Clear weather 
returned over the weekend and mostly clear to partly cloudy conditions 
prevailed across the region during much of the remainder of the week.  
Sunny weather and hot daytime temperatures in the upper 80s to lower 90s 
helped soft soils to firm.  The ideal conditions allowed planting to 
advance at a rapid pace as producers raced to complete fieldwork ahead 
of additional wet weather forecast to return to the region over the weekend. 
Some previously flooded low-lying areas had to be cleared of debris and 
soil deposits before replanting.  In Arkansas, reports indicated that 
seedling disease was evident in some of the earliest-planted fields due 
to cool and wet conditions in recent weeks.  Local experts encouraged 
producers to scout fields for early-season pests such as cutworms and 
thrips in young   seedlings.  According to the National Agricultural 
Statistics Service’s Crop Progress report released May 15, planting 
advanced to 51 percent in Arkansas, 48 in Missouri, and 35 percent 
completed in Tennessee. 
 
South Delta
 
Spot cotton trading was inactive. Supplies of available cotton were light.  
Demand was light.  Average local spot prices were higher.  Trading of 
CCC-loan equities was inactive. No forward contracting was reported. 
     
Scattered thunderstorms brought around one-quarter of an inch to one-half 
of an inch of moisture to areas across the region early in the period.  
Fieldwork was delayed, particularly in low-lying areas that remained 
saturated due to heavy rainfall and flooding in recent weeks.  In Louisiana, 
local experts reported the damp conditions and cool overnight soil 
temperatures observed in recent weeks has favored seedling disease and 
reduced plant vigor in some of the earliest-planted fields.  During the 
week, clear and warm conditions with daytime high temperatures in the mid-80s 
allowed soils to firm and planting activity to resume at a rapid pace.  
Producers were attempting to complete outside activities ahead of wet weather 
forecast to return to the region over the weekend.  According to the 
National Agricultural Statistics Service, planting advanced to 84 percent 
completed in Louisiana and 51 percent in Mississippi. 
 

Southwestern Markets 
 

East Texas-Oklahoma 
 
Spot cotton trading was slow.  Supplies and producer offerings were 
light.  Demand was light.  Average local spot prices were higher.  Producer 
interest in forward contracting was moderate.  Trading of CCC-loan equities 
was inactive.  Foreign inquiries were moderate.  Interest was best from China, 
Indonesia, and Thailand.  
     
Stands developed and had begun to bloom in the Rio Grande Valley.  Scouting for 
plant pests was underway and some treatments were applied for red spider mites.  
Cotton had begun to square in the Upper Coast.  Local experts reported wind 
damage to most stands.  A few fields were treated for fleahoppers.  Beneficial 
rainfall was needed.  In east-central Texas, some replanting had been done, but 
sowing was completed.  Rainfall is needed to help all crops mature.  Soil 
moisture declined.  Local reports indicated that in the northern Blackland 
Prairies, stands have stalled at the 5 and 6 true leaves stage and need moisture 
to progress.  All fields have been treated for plant pests and have been fertilized.  
In Kansas, rainy, cool conditions prevailed and slowed planting activities.  
According to the National Agricultural Statistics Service’s (NASS) Crop Progress 
report released on May 15, planting had advanced to 2 percent.  In Oklahoma, 
planting expanded and some fields had emerged.  Additional rainfall was received 
in some areas that enhanced soil moisture.  Planting had reached 33 percent, 
up 15 points from the previous year, and 15 points higher compared to the five-year average, 
according to NASS.  
 
West Texas 

Spot cotton trading was slow.  Supplies and producer offerings were light.  
Demand was light.  Average local spot prices were higher.  Producer interest in 
forward contracting was moderate.  Trading of CCC-loan equities was inactive.  
Foreign inquiries were moderate.  Interest was best from China, Indonesia, and Thailand.  
     
Planting advanced with daytime temperature highs in the mid-80s to low 90s, and 
nighttime lows in the upper 50s to low 60s.  Planting in some counties must be 
completed by May 31 to be eligible for full insurance coverage.  Irrigated stands 
had begun to emerge.  Some fields were watered.  Gusty winds persisted and spotty 
thunderstorms brought beneficial moisture to localized areas.  Some storms were 
severe, but no stand damage was reported.  Replanting in the panhandle had been 
reported on fields that received snowfall three weeks ago.          
 

Western Markets  
   

Desert Southwest (DSW) 
Spot cotton trading was inactive. Supplies were light. Demand was light.  
Average local prices were higher.  No domestic mill activity was reported.   
Foreign mill inquiries were light.    
     
Hot, dry conditions advanced the Arizona crop.  The Yuma crop made good progress.  
The crop was squaring and blooming continued.  Some bolls were sighted.  Local 
experts reported that heat units were near normal levels for this time of year.   
Fields in central Arizona made good progress, with some of the earliest-planted fields showcasing 
the first pinhead squares.  No significant pest pressures were reported.  Red 
flag warnings were in effect for areas in central Arizona, southeastern New Mexico, 
and into El Paso, Texas due to gusty winds and low humidity.  No measurable 
moisture was recorded for the DSW in the period.  The crop progressed normally 
in New Mexico and El Paso, Texas.  

San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies were moderate.    Demand was light.  
Average local spot prices were higher.  No forward contracting or domestic mill 
activity was reported. Foreign mill inquiries were light.  
     
Partly cloudy conditions kept temperatures in the low 70s. No moisture was 
recorded in the period.  Overall, the crop looked good, but growth was slowed 
by cool conditions.  Extension agents reported that heat units were below normal 
for this time of year.  Some seedling diseases were found and thrips populations 
were building.  Producers cultivated fields and checked soil moisture levels as 
afternoon winds continued.  Central Valley water officials managed water releases from local dams and 
monitored river outflows, all to avoid flooding in low-lying areas.  Cooler 
temperatures slowed the melting of the Sierra Nevada Mountain snowpack.  Producers 
attended the SJV Cotton Production Symposium on May 16 and 17.   

American Pima (AP) 

Spot cotton trading was inactive.  Supplies were light.  Demand was good.  
Average local spot prices were steady.  Producers inquired for new-crop contracts.  
No domestic mill activity was reported.   Foreign mill inquiries were good and 
mostly for new-crop.  Shippers offering prices were firm for old and new-crop cotton.   
     
Temperatures were in the 90s for Arizona.  Cooler temperatures in the 70s were 
prevalent in the San Joaquin Valley.  Red flag warnings were in effect for areas 
in central Arizona, southeastern New Mexico, and into El Paso, Texas due to gusty 
winds and low humidity.  No measurable moisture was recorded for the Desert      
Southwest in the period.  Local sources reported the crop made excellent progress 
in Yuma, Arizona.  The crop was producing squares and blooming.  Some bolls were 
sighted.  Crop progress slowed in the San Joaquin Valley as cooler temperatures 
entered the region.  Producers were advised to manage and monitor the crop in 
its early growth stages because of vulnerability to seedling diseases and insect 
pressures.  Central Valley water officials managed water releases from local dams 
and monitored river outflows to avoid flooding in low-lying areas.  Cooler 
temperatures slowed the melting of the Sierra Nevada Mountain snowpack.  
Producers attended the SJV Cotton Production Symposium on May 16 and 17.   
 
Textile Mill 

Domestic mill buyers purchased a moderate volume of 2017-crop cotton, color 52 
and better, leaf 5 and better, and staple 32 and longer for October through 
December delivery.  Mill buyers also inquired for a moderate volume of 2017-crop 
cotton, color 41, leaf 4, and staple 34 and longer for fourth quarter delivery.  
No additional sales were reported.  Most mills have covered their raw cotton needs 
through the near term.  Demand for open-end and ring-spun yarns was moderate.  
Most mills operated four to seven days. 
     
Demand through export channels was moderate. Indonesian mill buyers purchased 
a moderate volume of   2017-crop cotton, color 31, leaf 3, and staple 35 for 
November shipment.  Turkish mill buyers purchased a moderate volume of 2017-crop 
cotton, color 31, 41, and 42, leaf 3, and staple 33 for November through January 
2018 shipment.  Peruvian mill buyers purchased a moderate volume of USDA Green 
Card Class, 2017-crop     cotton, color 41 and 42, leaf 4, and staple 35 and 36 
for October through December shipment.  Vietnamese mill buyers inquired for a 
moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 35 for 
June/July shipment.   Japanese mill buyers inquired for a light volume of USDA 
Green Card Class, color 31, leaf 3, and  staple 36 for September/October shipment.  
No additional sales were reported. 


Regional Price Information  

 
Southeastern Markets 
. 
A light volume of color 31 and 41, leaf 3 and 4, staple mostly 35 and 36, mike 
43-52, strength 29-32, and  uniformity 80-82 sold for around 73.00 cents per 
pound, FOB car/truck (Rule 5, compression charges paid). 
. 
A light volume of color 31 and 41, leaf 3 and 4, staple 34-36, mike 43-52, 
strength 27-30, uniformity 80-83, and containing approximately 25 percent extraneous 
matter sold for 67.00 to 68.00 cents, same terms as above. 


South Central Markets 
 
 
North Delta 
. 
No trading activity was reported. 

South Delta 
. 
No trading activity was reported. 


Southwestern Markets 
 
  
East Texas 
. 
In Oklahoma, a mixed lot containing a heavy volume of mostly color 21 and 31, 
leaf 3 and 4, staple 35-37, mike 33-48, strength 26-33, and uniformity 78-83 sold 
for around 80.00 cents per pound, FOB car/truck (compression charges not paid).  
. 
A light volume of color 32 and better, leaf 4 and 5, staple 35 and 36, mike 41-43, 
strength 28-29, uniformity averaging 81.5, and 25 percent extraneous matter sold 
for around 73.50 cents, same terms as above.  

West Texas 
. 
A heavy volume of color 21 and 31, leaf 2 and 3, staple 36 and longer, mike 23-42, 
strength 26-32, and uniformity 77-83 sold for around 80.50 cents per pound, FOB 
car/truck (compression charges not paid).  


Western Markets 
 

Desert Southwest 
. 
No trading activity was reported. 
 
San Joaquin Valley 
. 
No trading activity was reported. 

American Pima   
. 
A moderate volume of 2016-crop cotton, color 2 and better, leaf 2, and staple 46 
and longer was sold to foreign mills for prompt shipment.         
. 
A heavy volume of 2017-crop cotton, color 2, leaf 2, and staple 46 and longer was 
booked at around 130.00 to 132.00 cents per pound, UD free, FOB warehouse, with 
fixed differences paid for quality lower than base quality.