USDA Weekly Cotton

   
Mp_cn812 
May 18, 2018 
Weekly Cotton Market Review

Average quotations were 134 points lower than the previous week, 
according to the USDA, Agricultural Marketing Services 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 80.19 cents per pound for the week ending Thursday, 
May 17, 2018. The weekly average was down from 81.53 last week, 
but up from 78.53 cents reported the corresponding period a year 
ago. Daily average quotations ranged from a low of 79.64 cents 
Monday, May 14 to a high of 81.02 cents Thursday, May 17. Spot 
transactions reported in the Daily Spot Cotton Quotations for 
the week ended May 17 totaled 33,669 bales. This compares to 35,776 
bales reported last week and 4,198 spot transactions reported 
the corresponding week a year ago. Total spot transactions for 
the season were 1,946,150 bales compared to 1,560,874 bales the 
corresponding week a year ago. The ICE July settlement prices 
ended the week at 85.03 cents, compared to 84.56 cents last week. 


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. 
     
Planting advanced at a rapid pace across the lower Southeast 
early in the period as sunny and dry conditions prevailed over 
the weekend.  Daytime high temperatures were in low 90s, but 
dipped to the upper 70s to 80s during the week as overcast 
conditions and wet weather entered the region.  Producers 
welcomed widespread shower activity during the week, which 
brought one-half to one inch of weekly accumulated moisture 
to localized areas throughout Alabama, the Florida Panhandle, 
and central Georgia.  Heavier accumulations of up to 2 inches 
of precipitation were received along the Atlantic coastal areas 
of Georgia.  In Alabama, producers had begun irrigating emerging 
cotton in areas that had missed rainfall.  In Georgia, the 
beneficial moisture will allow dryland farmers to resume planting 
where soils had become hard and dry.  Some fields will have to be 
replanted where moisture arrived too late to invigorate emerging 
seedlings, and also some earlier-planted fields where cool soils 
hindered good plant populations at germination.   
     
Planting activity expanded rapidly in the Carolinas and Virginia 
as mostly fair to sunny conditions prevailed early in the period 
with daytime high temperatures in the mid-80s to mid-90s.  The 
hot and dry conditions slowed planting activity in some areas of 
the Carolinas where soil moisture conditions deteriorated and 
producers waited for rainfall.  Reports indicated irrigation was 
utilized every day in fields where available.  Later in the week, 
a storm system drifted north along the Atlantic Coast and produced 
shower activity over the Carolinas and Virginia.  Producers 
welcomed wet weather, which helped replenish sub-soil moisture.  
Rainfall totals measured from one-quarter of an inch to one-half 
of an inch in some areas.  Wet weather, which is in the near term 
forecast, will idle planters. 
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of 2018-crop 
cotton, color 51 and better, leaf 5 and better, and staple 32 and 
longer for April through October 2019 delivery.  No sales were 
reported.  Yarn demand was moderate.  Most mills operated five 
to seven days.  Load out dates at most warehouses were reported 
at 8 to 10 weeks. 
     
Demand through export channels was moderate and had tapered due 
to higher ICE futures prices.  Agents throughout the Far East made 
initial inquiries for a moderate volume of 2018-crop cotton, color 
41, leaf 4, and staple 36 and longer for first quarter 2019 shipment. 

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.  Cotton was being delivered to fulfill contracts 

Favorable climatic conditions allowed producers to make excellent 
progress with planting.  Daytime high temperatures in the mid-90s 
were a few degrees above average for this time of the year.  
Overnight temperatures in the 70s were also several degrees above 
the seasonal average. Light, isolated thundershowers were received early week, 
but most producers reported that fieldwork, particularly fertilizer 
applications and planting, was not significantly impacted.  A storm 
front late week brought heavy rain showers to the Memphis territory; 
up to 1inch of rain was reported generally.  All outdoor activities 
were idle until fields firmed enough to support equipment.

 
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.  Cotton was being delivered to fulfill contracts.  

Favorable weather conditions allowed producers to make excellent 
progress with planting.  Daytime high temperatures were in the low 90s, 
or about average for this time of the year.  Overnight temperatures 
in the 70s were above the seasonal average. No rainfall was received, 
and most producers reported that all aspects of fieldwork, including 
burndown, fertilizer applications, and planting advanced normally.  
No emerged cotton was reported. Producers made excellent progress sowing 
the 2018 crop, however, a storm front late week brought heavy rain showers 
to the region. Up to 1 inch of rain was reported generally.  All outdoor 
activities were idle until fields firmed enough to support equipment.

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 active.  Supplies and producer offerings were 
moderate.  Demand was good.  Average local spot prices were lower.  
Producer interest in forward contracting was moderate.  Trading of 
CCC-loan equities was active.  Foreign inquiries were light. 
     
Some stands exhibited heat stress in south Texas, and rainfall would 
help the plants improve.  Stands were irrigated. Drought has negatively 
impacted dryland acres in Willacy county cotton fields, leaving some fields 
fallow and others failing to establish, according to the Texas A&M 
Extension Pest Cast, released on May 11. Integrated Pest Management (IPM) 
experts continued to help producers manage plant pests populations 
including the fleahopper, aphid, red spider mite, whitefly, and thrips 
in the Coastal Bend, Upper Coast, and Rio Grande Valley.  IPM specialist 
continued to monitor for bollworms and resistance to one or more Bt genes 
in Bt varieties in parts of Texas.  Fields were soggy in the Blackland 
Prairies and delayed replanting. Some areas had received 6 inches of 
rainfall.  Stands had emerged and needed dry, sunny conditions to advance.  
Planting neared completion. Beneficial rains were received in 
most parts of the Oklahoma cotton-growing areas.  Seedlings emerged 
quickly and uniformly, according to local reports.       
 
West Texas
 
Spot cotton trading was slow.  Supplies and producer offerings 
were light.  Demand was light.  Average local spot prices were 
lower.  Producer interest in forward contracting was light, due 
to droughty conditions. Trading of CCC-loan equities was inactive.  
Foreign inquiries were light.  
     
Dry, windy conditions prevailed with daytime highs in the mid-80s 
to upper 90s, and overnight temperatures in the low 40s to upper 
60s.  Scattered afternoon storms brought rain, hail, and gusting 
winds to the cotton-growing areas.  Estelline and other areas 
received severe hail storms and up to 5 inches of moisture early 
in the reporting period.  Parts of Lubbock received rainfall 
the evening of May 15.   Planting expanded when outside conditions 
were favorable. Fields were irrigated and some had emerged.           
 
Trading 
 
East Texas 
..
In Oklahoma, a moderate volume of mostly color 22 and better, 
leaf 3 and better, staple 35 and 36, mike    37-43, strength 29-33, 
and uniformity 78-82 sold for around 80.50 cents per pound, FOB car/truck 
(compression charges not paid).    
..
A heavy volume of mostly color 21 and 31, leaf 3 and better, staple 36 
and longer, mike 30-44, strength     27-33, uniformity 79-83, and 25 
percent extraneous matter sold for around 77.00 cents, same terms as above. 
..
A mixed lot containing a moderate volume of mostly color 13 and 23, 
leaf 2 and 3, staple 34-36, mike28-48, s trength 26-31, uniformity 78-82, 
and 50 percent extraneous matter sold for around 67.75 cents, same terms as above.     
..
A heavy volume of CCC-loan equities traded for 11.00 to 24.50 cents. 

West Texas 
..
A light volume of color 21 and 31, leaf 2 and 3, staple 34 and longer, 
mike 28-33, strength 25-28, and       uniformity 76-82 sold for 
around 60.25 cents per pound, FOB car/truck (compression charges not paid). 
..
A light volume of mostly color 21 and 31, leaf 4 and better, staple 36 
and 37, mike 30-36, strength 26-28, uniformity 79-80, and 75 percent 
extraneous matter sold for around 66.00 cents, same terms as above. 
..
A light volume of mostly color 11, leaf 2 and 3, staple 34-36, 
mike 25-28, strength averaging 25.3, and uniformity 75-80 sold for 
around 52.00 cents, same terms as above. 
..
A light volume of mostly color 41, leaf 3, staple 33, mike 
averaging 23.5, strength averaging 25.6, uniformity averaging 77.3, 
and 50 percent extraneous matter sold for around 45.50 cents, same terms as above. 


Western Markets Regional Summary  


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.  
Average local spot prices were lower. Forward contracting was 
active, as December ICE futures maintained at the 80.00 cents range.  
No domestic mill activity was reported.  Foreign mill inquiries were light.   
     
Temperatures lowered into the 90s in Arizona.  The crop continued 
to make good progress.  No significant pest pressures were reported.  
Fire danger conditions continued as strong winds were reported in 
New Mexico and El Paso, TX.  Planting was completed.  Local sources 
reported the young crop was in good condition.  In Hudspeth County, TX, 
some concern was expressed in high salinity levels in irrigation water.  
Gin maintenance and repairs were active.     
 
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.  New-crop inquiries were made 
for the purpose of price discovery.     
     
Temperatures were near normal mostly in the 80s and dropped into 
the 70s late in the period, as clouds moved into the Valley.  The 
crop progressed normally.  No insect pressures were reported.   
 
American Pima (AP)
 
Spot cotton trading was inactive.  Supplies and demand were light.    
Average local spot prices were steady.  No forward contracting was 
reported.  Domestic mills inquired for 2018-crop cotton.  A light 
volume of new sales were reported.  Foreign mill inquiries were 
light and mostly for new-crop price discovery.   
     
Hot, dry conditions advanced the Far West crop.  The crop progressed 
normally, with little to no insect pressure reported.  Strong 
winds and low humidity increased wildfire danger in New Mexico, 
and El Paso, TX.  Planting was completed in the Far West.  Sources 
in El Paso, TX commented that there was a slight increase in AP acreage, 
as more irrigation water became available and was released to 
growers prior to planting.   Gin maintenance and repairs were active.  

Save the date:  The Visalia Classing Office will host the annual 
American Pima guide box matching on July 10.        

Trading 
 
Desert Southwest 
..
A heavy volume of 2018-crop cotton, contract base quality of color 31, 
leaf 3, and staple 36 and longer was contracted at around even on ICE 
December futures.   
 
San Joaquin Valley 
..
No trading activity was reported. 

American Pima 
..
No trading activity was reported. 


USDA ANNOUNCES SPECIAL IMPORT QUOTA #4 
FOR UPLAND COTTON 
May 17, 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 weeks domestic mill use. The 
quota will be established on May 24, 2018, allowing importation of 
13,123,605 kilograms (60,276 bales) of upland cotton.  
     
Quota number 4 will be established as of May 24, 2018, and will apply 
to upland cotton purchased not later than August 21, 2018, and entered 
into the U.S. not later than November 19, 2018. The quota is equivalent 
to one week's consumption of cotton by domestic mills at the 
seasonally-adjusted average rate for the period January 2018 through 
March 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.  




 



 

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