Weekly Cotton Market Review – USDA

©Debra L Ferguson Stock Images

Average quotations were 492 points lower 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, and uniformity 81.0-81.9) in the seven designated markets averaged 79.34 cents per pound for the weekending Thursday, August 16, 2018.

The weekly average was down from 84.26 last week, but up from 65.91 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 82.07 cents Friday, August 10 to a season low of 77.29 cents Wednesday, August 15.

Spot transactions reported in the Daily Spot Cotton Quotations for the week ended August 16 totaled 2,999 bales. This compares to 4,113 reported last week and 4,904 spot transactions reported the corresponding week a year ago.

Total spot transactions for the season were 7,630 bales compared to 10,555 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 82.13 cents, compared to 87.26 cents last week.

USDA ANNOUNCES SPECIAL IMPORT QUOTA #17 FOR UPLAND COTTON August 16, 2018

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 August 23, 2018, allowing importation of 13,543,665 kilograms (62,205 bales) of upland cotton.

Quota number 17 will be established as of August 23, 2018, and will apply to upland cotton purchased not later than November 20, 2018, and entered into the U.S. not later than February 18 2019. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period April 2018 through June 2018, 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.

More on Cotton


Southeastern Markets Regional Summary

Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive.

Fair to partly cloudy conditions were observed across the lower Southeast region during the period. Daytime high temperatures were in the upper 80s to low 90s throughout the week. Scattered thundershowers brought moisture to areas from the Gulf to Atlantic coasts.

In south Alabama, south Georgia, and the Florida panhandle, day-to-day shower activity brought around one to one and one-half inches of weekly accumulated precipitation to localized areas. Producers welcomed the beneficial rainfall in areas of Alabama where dry conditions were observed.

Insect pressure was generally light; some fields were treated where foliage feeders met threshold levels. In Georgia, target spot disease had spread in areas where damp conditions persisted. Adult whiteflies were also present in some fields.

Similar weather conditions were observed across the upper Southeastern region throughout the period. Daytime high temperatures were observed in the mid-80s to low 90s. Widespread shower activity brought moisture to areas throughout North Carolina and portions of eastern South Carolina and Virginia.

Weekly accumulated precipitation totals measured from one-half of an inch to two inches, with heavier accumulations observed in localized areas. Continued rainfall over the last couple of weeks has prevented producers from applying growth-regulators in some fields and there is concern that yields will be negatively impacted.

Weed pressure has also increased in areas where herbicide applications have been delayed. Insect pressure was generally light. In areas where populations met threshold limits, producers treated fields where soils were firm enough to support equipment.

Bolls were cracking open in the earliest-planted fields across the region. According to the National Agricultural Statistics Service’s Crop Progress report released August 13, boll-setting had reached 89 percent in Alabama, 84 in Georgia, 78 in North Carolina, 75 percent in South Carolina and Virginia.

Textile Mill

Demand was good for color 41, leaf 4, and staple 34 for fourth quarter 2018 through first quarter 2019 delivery. No additional sales were reported. Demand of open-end and ring-spun yarn was moderate. Most mills operated five to seven days.

Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted styles of cotton. No sales were reported.

Trading

  • No trading activity was reported.

South Central Markets Regional Summary

North Delta

Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.

Hot and humid weather prevailed throughout the region during the week. Daytime high temperatures were in the upper 90s, with a reported heat index of 102. Overnight lows were in the upper 70s. A series of storms brought several inches of rain to northeastern Arkansas and the cotton-producing region of Missouri mid-to-late week.

Locally heavy downpours resulted in up to 5 inches of rain in some places. Only trace amounts of precipitation were reported in Tennessee, which caused the condition of the cotton crop to decline somewhat compared to last week. Some boll shedding was reported in drier areas.

Crop protection measures have been terminated on dryland cotton and early-planted fields under irrigation. Some late-planted fields continued to receive treatments as necessary, due to pressure from insect pests including plant bugs, bollworms, and spider mites.

According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released August 13, the crop condition in Arkansas improved slightly to 84 percent good-to-excellent. Missouri also improved slightly to 79 percent fair-to-good, while Tennessee declined 8 points to 74 percent good-to-excellent.

NASS also reported that open bolls were at 7 percent in Arkansas, 26 percent in Missouri, and 8 percent in Tennessee. Defoliation could begin within one to two weeks, staring with dryland fields.

South Delta

Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.

Fair weather conditions allowed the crop to make normal progress during the week in most areas. Daytime high temperatures were in the mid-90s. Overnight lows were in the low 70s. Pop-up thunderstorms brought 1 to 2 inches of rain to widely scattered areas.

Producers continued irrigating as necessary to maintain adequate soil moisture on late-planted fields. Boll shedding was reported in moisture-stressed fields. Insect pressure was light and fields were treated to control pests; many fields no longer required any crop protection measures.

According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released August 13, the crop condition in Louisiana was rated at 92 percent fair-to-good and in Mississippi 73 percent fair-to-good; these figures were slightly lower than those reported the previous week. NASS also reported that open bolls had reached 12 percent in Mississippi and 29 percent in Louisiana; defoliation could begin within a week to ten days.

AgFax Weed Solutions


Trading

North Delta

  • No trading activity was reported.

South Delta

  • No trading activity was reported.

Southwestern Markets Regional Summary

East Texas

Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light.

Defoliants were applied and harvesting progressed under good conditions in south Texas. More than half of the fields have been harvested in the Coastal Bend. Harvesting has been completed in some counties except on late-planted fields. Harvesting expanded in the Upper Coast. Ginning continued in the Rio Grande Valley.

Untimely rainfall was received on some fields that were ready for harvest in the northern Blackland Prairies, where producers had already applied defoliants. Reports indicated that 7 to 12 inches of rainfall was received and field activity was hindered. Drier conditions prevailed in the southern Blackland Prairies, and defoliants and boll openers were applied.

According to the National Agricultural Statistics Service’s (NASS) Texas Production report released on August 10, production in the Blackland Prairies is forecasted at 160,000 bales, compared to 293,000 bales produced the previous year. Acres harvested are estimated at 215,000 acres, compared to 165,000 acres last season, and estimated yield is at 357 pounds per acre, compared to 856 pounds per acre in 2017.

According to NASS’s Crop Production report released on August 10, Kansas cotton production is forecasted at 250,000 bales, up 27 percent from the previous year. Acreage harvest is forecasted at 116,000 acres, up 26,000 acres from 2017. Yield is forecasted lower at 1,034 pounds per acre, down 17 pounds per acre. Bolls had begun to open. Moderate, timely rainfall helped the crop advance.

Recent rainfall in Oklahoma helped the irrigated stands, and producers were encouraged. Some fields reached cut-out. Dryland continued to struggle.

West Texas

Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was slow. Foreign inquiries were light.

Daytime temperatures were mostly in the mid-80s to low 90s. A series of timely thunderstorms early in the reporting period brought beneficial rainfall and cooler conditions, which gave heat-stressed plants a reprieve. The rainfall was received too late for many dryland acres that have already been submitted for coverage under the federal crop insurance program.

Irrigated fields reached full-bloom, and some neared cut-out. Plants were loaded and fruit retention was good. Stands in the western panhandle and in New Mexico have enough well water and made good progress. Beneficial rainfall was received. Local experts continued to monitor fields for insect activity.

Trading

East Texas

  • In Texas, a light volume of new-crop cotton color 21 and 31, leaf 3 and better, staple 36 and longer, mike 44-48, strength 28-30, and uniformity 79-81 sold for around 80.50 cents per pound, FOB warehouse (compression charges not paid).
  • In Kansas, a mixed lot containing a moderate volume of 2017-crop cotton mostly color 33 and better, leaf 5 and better, staple 36 and longer, mike 35-47, strength 29-32, uniformity 80-83, and 25 percent extraneous matter sold for around 67.50 cents, FOB car/truck (compression charges not paid).
  • A mixed lot containing a light volume of mostly color 85, leaf 7 and better, staple 32 and longer, mike 31-42, strength 25-31, uniformity 76-81, and 75 percent extraneous matter sold for around 32.25 cents, same terms as above.

West Texas

  • A moderate volume of CCC-loan equities traded for 3.75 to 7.75 cents per pound.

Western Markets Regional Summary

Desert Southwest (DSW)

Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light and mostly for new-crop price discovery.

Temperatures were in the low 100s, with approximately one-half of an inch of rainfall received early in the period. Harvesting gained momentum in Yuma. Modules lined the fields and were transported to the gin.

According to the National Agricultural Statistics Service (NASS) Crop Progress report for week ending August 12, boll-setting reached 91 percent and 25 percent of bolls were opened. The condition of the crop was rated mostly fair-to-good. Some central Arizona fields were treated to control lygus and whitefly. Evidence of Level 2 heat stress was present in some fields a few young immature bolls were shed.

Squaring advanced to 85 percent in New Mexico. Boll-setting was at 52 percent, compared to the five-year average of 64 percent, according to NASS. The condition of the crop was rated mostly fair-to-good.

Monsoon moisture brought one-half of an inch to nearly one inch of much needed moisture early in the reporting period for New Mexico and El Paso, TX. Local sources reported that the crop made good progress. The organic crop in New Mexico made good progress. The crop has responded well to the heat. No insect pressure was reported.

San Joaquin Valley (SJV)

Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. No inquiries for new-crop were reported.

Sunny skies and hot temperatures ruled. Daytime high temperatures were in the high 90s to low 100s. Conditions improved as fire crews contained nearby wildfires. Fields were sprayed for aphid and lygus. The crop was in good condition and made good progress.

The California State Department of Ag. Pink Bollworm program issued the final Upland cotton acreage mapped at 33,990 acres in the SJV. A statewide total of 47,925 Upland acres was reported.

American Pima (AP)

Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. No domestic mill activity was reported. Foreign mill inquiries were light for 2018-crop cotton.

Daytime temperatures were in the high 90s to low 100s for the Far West. The Far West crop continued to make good progress under hot, dry conditions. Harvesting gained momentum in Yuma, AZ. Ginning was set to begin after the Upland cotton ginning is completed. Blooming continued and boll-setting advanced throughout the region.

Overall, the crop was in good condition. The California State Department of Ag. Pink Bollworm program issued the final cotton acreage mapped at 209,945 acres of AP cotton in the SJV.

Trading

Desert Southwest

  • No trading activity was reported.

San Joaquin Valley

  • No trading activity was reported.

American Pima

  • No trading activity was reported.

The Latest


Send press releases to Ernst@Agfax.com.

View All Events


Send press releases to Ernst@Agfax.com.

View All Events