USDA Commentary: Weekly Cotton Markets, Weather by Region

Spot cotton quotations averaged 37 points lower than the previous week, according to the USDA, Agricultural Marketing ServiceÂ’s Cotton 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 69.61 cents per pound for the week ended Thursday, July 24, 2014.

The weekly average was down from 69.98 cents last week and 82.16 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 70.18 cents on Tuesday, July 22 to a new season low of 67.68 cents on Thursday, July 24.

Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 24 totaled 678 bales. This compares to 1,215 bales reported last week and 3,605 bales reported a year ago. Total spot transactions for the season were 1,305,567 bales compared to 1,675,500 bales the corresponding week a year ago.

The ICE October settlement prices ended the week at 66.40 cents, compared to 68.45 cents last week.Regional Summaries Regional Summaries Southeastern Markets Spot cotton trading was slow. Supplies and demand were light. Producer offerings were light. Average local spot prices were weak. Trading of CCC-loan equities was inactive.

cotton-sprayer-06302014-facebookUSDA – Special Import Quota #24 for Upland Cotton –  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 July 31, 2014 allowing importation of 14,741,821 kilograms (67,709 bales) of upland cotton. Quota number 24 will be established as of July 31 and will apply to upland cotton purchased not later than October 28, 2014, and entered into the U.S. not later than January 26, 2015. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period March 2014 through May 2014, 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.

Cotton Weather

Widespread showers and thunderstorms brought locally heavy rainfall to areas from Alabama to the coastal Carolinas throughout the period. Weekly accumulated precipitation totals measured one to four inches as a low pressure system lingered over the region and produced afternoon downpours accompanied at times by strong wind. Lighter, scattered rainfall was received in central North Carolina and Virginia. Despite the extensive rainfall, abnormally dry patches expanded in portions of central Alabama and south Georgia that missed recent rain events.

An unusually strong cold front dipped into the south and moderated temperatures throughout the region. Record cool daytime highs in the upper 60s to lower 70s were observed in several areas. The balance of the crop was squaring across the region and boll setting advanced at a rapid pace. Producers scouted fields for boll injury from stink bugs and applied spray treatments in fields where damage was detected. Pressure from aphids, plant bugs, and spider mites appeared to decline. Normal applications of growth regulators were being applied to fields in all areas.

South Central Markets

North Delta Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported.

Scattered rain showers brought about one-half of an inch of rain to isolated areas during the week. Daytime temperatures were in the 90s. Overnight lows were in the upper 60s. The crop made good progress under favorable conditions. Fields were treated for plant bugs as necessary. Local experts reported that boll counts were very good in Tennessee. Glyphosate resistant pigweed and marestail were manually removed from fields by labor crews in Missouri. According to the National

Agricultural Statistics ServiceÂ’s Crop Progress report released on July 21, boll setting at or above the five- year average in Arkansas, but was well behind the pace in Missouri and Tennessee.

South Delta Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported.

Thunderstorms brought less than one-inch of beneficial moisture to most of the region, while some isolated areas received up to one-inch. Daytime temperatures were in the upper 90s. Overnight temperatures were in the high 60s. The hot temperatures helped the crop make good progress. Producers were irrigating to maintain adequate soil moisture for normal crop development in drier parts of Louisiana. Fields were treated for plant bugs and bollworms as necessary. According to the National Agricultural Statistics ServiceÂ’s Crop Progress report released on July 21, boll setting made good progress, but continued to lag behind the five-year average in Louisiana and Mississippi.

Southwestern Markets

East Texas-Oklahoma Spot cotton trading was inactive. Supplies were light. Demand was very light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.

According to the National Agricultural Statistical Service Crop Progress report released on July 21, cotton conditions were rated at mostly good to fair across the state of Texas. Bolls popped open in the Coastal Bend. Producers prepared for harvest in the Rio Grande Valley and south Texas. Harvest aids were applied. Central Texas reports indicated that the plants were loaded with bolls, and yields were expected to be above average. Spotty rains helped to alleviate heat stress. Plant-growth regulators were applied. Insect pressures were low. Blooming was underway in Kansas. Hot, dry conditions prevailed. Daytime temperatures neared 100 degrees, which built heat units to help the crop mature. Isolated

Regional Summaries Regional Summaries showers benefited fields. In Oklahoma, temperatures were in the upper 90s during the day and mid to upper 70s at night. Intermittent thunderstorms brought moisture, which helped to advance the crop. Expert reports indicated that the crop was two to three weeks late. Producers remained optimistic.

West Texas Spot cotton trading was inactive. Supplies were light. Demand was very light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.

Hot, dry conditions prevailed in the week. Temperatures were from the high 90s to low 100s in the daytime and in the mid-70s overnight. Northwestern counties in the Panhandle and in eastern New Mexico received a trace to four inches of beneficial rainfall, which boosted progress. Fields varied in maturity from match-head square to first bloom. Producers were busy applying plant-growth regulators and herbicide. Aerial applicators were active. Insect pressures were light, but some fields presented infestations of fleahoppers. Weeds needed constant attention, with hoe crews hired to manually remove pesky resistant weeds.

Western Markets

Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were weak. No forward contracting or domestic mill activity was reported.

Excessive heat warnings were issued for central and western Arizona as high temperatures reached 114 degrees late in the period. Producers irrigated cotton to minimize heat stress. Industry representatives reported bottom bolls were cracking open in Yuma, Arizona. Insect pressures were light and not widespread. Early- planted fields approached cut-out. Higher-elevation cotton fields in the Safford Valley made excellent progress.

San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were weak. No forward contracting or domestic mill activity was reported. Foreign mills showed an interest for high grade, long and strong cotton. No new sales were reported. No new-crop cotton was offered. Cooperatives and merchants remained busy shipping cotton against previous contracts.

Temperatures were in the high 90s for most of the week. Producers cultivated, irrigated, and applied insecticide treatments as needed. Lack of water continued to be a major concern for the Valley. Next yearÂ’s planting plans depend on available rainfall and snow pack in October through December.

American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local prices were steady. No forward contracting or domestic mill activity was reported. Interest was best from India for prompt shipment. Inquiries and sales for 2014-crop cotton were slow, due to concern for yield potential and producersÂ’ willingness to wait for prices until new-crop enters marketing channels. Shippers were busy shipping cotton against previous sales.

The crop made good progress in Yuma, Arizona. Some early-planted fields approached cut-out stage. Bottom bolls were cracking open. Construction on the new roller gin in Coolidge, Arizona continued. The gin building was up and equipment was installed. The gin will have six roller stands. Some producers were planning to gin a light volume of upland through the new gin. Several field locations throughout the San Joaquin Valley (SJV) reached peak bloom. Insect pressures were minimal and easily controlled. Boll counts were conducted in the region. Lack of water continued to be a major concern for the SJV. Next yearÂ’s planting plans depend on available rainfall and snow pack in October through December.

 




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