USDA Weekly Cotton

   

Mp_cn812 
February 23,  2018 
Weekly Cotton Market Review 



Average quotations were 156 points higher 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 75.25 cents per pound for the week 
ending Thursday, February 22, 2018. The weekly average was  up 
from 73.69 last week and 71.99 cents reported the corresponding 
period a year ago.  Daily average quotations ranged from a low 
of 73.47 cents Friday, February 16 to a high of 76.53 cents 
Wednesday, February 21.  Spot transactions reported in the Daily 
Spot Cotton Quotations for the week ended February 22 totaled 
83,744 bales. This compares to 54,051 bales reported last week 
and 26,991 spot transactions reported the corresponding week a 
year ago. Total spot transactions for the season were 1,478,507 
bales compared to 1,328,732 bales the corresponding week a year 
ago. The ICE May settlement prices ended the week at 79.47 cents, 
compared to 76.77 cents last week. 


Southeastern Markets Regional Summary 


Spot cotton trading was slow.  Supplies and producer offerings 
were moderate.  Demand was moderate.  Average local spot prices 
were higher. Trading of CCC-loan equities was inactive. 
     
Mostly cloudy conditions prevailed across the entire Southeastern 
region during the period.  Unseasonably warm daytime high temperatures        
in the mid-70s to low 80s prevailed across the lower Southeast. 
Over the weekend, daytime high temperatures dipped into the low to mid-50s       
across the Carolinas and Virginia as a cold front entered the region, but 
temperatures warmed into the 70s again late week. Scattered precipitation 
was observed throughout the region, but rainfall totals were minimal.  
Weekly accumulated precipitation totals measured around one-quarter 
of an inch in most locales.  Locally heavier accumulations of one-half 
to one inch of measurable moisture was observed in portions of 
northwest Alabama and the eastern region of Virginia. Abnormally dry 
to moderate drought conditions expanded in areas of southeast Georgia, 
due to seasonal rainfall deficits, according to the U.S. Drought Monitor. 
Abnormally dry and moderate drought conditions were reduced in areas of 
Alabama and Virginia, due to the moisture received in recent weeks.  
Fieldwork was limited.  Producers attended regional meetings and 
workshops. Ginning was winding down throughout the region; a few gins        
in north Alabama and Georgia continued daily operations processing modules. 
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, 
and staple 34 for May through December delivery.  No sales were reported.  
Most mills have covered their immediate-to-nearby raw cotton needs.  Yarn 
demand was moderate. 
     
Demand through export channels was moderate.  Demand was good throughout 
the Far East for any discounted styles of cotton.  Inquiries continued 
for low mike cotton throughout the Pacific Rim as mills run production 
tests to determine how these qualities will perform in plants.       

Trading 
 
..
A heavy volume of color mostly 31 and 41, leaf 2-5, staple 33 and longer, 
mike 43-52, strength 27-30, and uniformity 80-82 sold for around 81.25 cents 
per pound, FOB car/truck (Rule 5, compression charges paid). 
..
Mixed lots containing color 53 and better, leaf 5 and better, staple 34 
and longer, mike 37-49, strength 27-30, and uniformity 80-82 sold for 
around 73.00 cents, same terms as above. 
..
A heavy volume of color 41 and 51, leaf mostly 3 and 4, staple 36 and longer, 
mike 43-49, strength 28-30, and uniformity 80-82 sold for around 81.00 cents, 
FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). 
..
Mixed lots containing color mostly 31 and 41, leaf 2-4, staple mostly 34-36, 
mike 43-49, strength 27-29, and uniformity 79-81 sold for around 78.75 cents, 
same terms as above.  


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 higher.  Trading of 
CCC-loan equities was inactive. No forward contracting was reported. 
Cotton was being delivered to fulfill contracts.  Some warehouses reported 
delays, due to a shortage of trucks. 

A strong flow of warm, moisture-laden air from the Gulf of Mexico resulted in 
heavy rain showers that are expected to continue into next week.  Approximately 
3 inches of rain was reported in most places, while localized areas 
received up to 5 inches.  Flood watches were in effect throughout the 
region.  Temperatures were in the 50s to 70s.  Overnight lows were in the 
40s and 50s.  Producers attended, or  made plans to attend, various industry 
economic and agronomic workshops and meetings.  According to the U.S. Drought 
Monitor, soil moisture levels have improved greatly in the cotton-producing areas of    
the region; areas of abnormal dryness-to-moderate drought persist from central 
Arkansas into Missouri.  Producers were considering their planting options 
and preparing to book seed accordingly. 
 
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.  Cotton was being 
delivered to fulfill contracts. A few warehouses reported minor delays, due to 
a shortage of trucks. 

An extended storm front brought widely varying temperatures to the region during 
the week.   Daytime temperatures were in the low 40s to the upper 70s. Overnight 
lows were in the 30s to 60s. Moisture-laden air from the south brought rain 
storms of varying intensity, which moved through the territory throughout the 
week. Approximately 3 inches of rain was reported in most places, while localized 
downpours brought up to 6 inches or more.  River flood watches were in effect 
throughout the region.  Producers attended, or made plans to attend, various 
industry workshops and meetings that included topics in areas of agronomic and 
economic interest to producers.  According to the U.S. Drought Monitor, areas of 
abnormal dryness-to-moderate drought in northeastern Louisiana and parts of 
Mississippi persist, in spite of up to 6 inches of rain accumulations over the 
past two weeks. Producers were considering their planting options and some were 
purchasing seed to meet their needs.

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 moderate.  Average local spot prices were firm.  
Producer interest in forward contracting was moderate.  Trading of 
CCC-loan equities was active.  Foreign inquiries were light. 
     
Planting expanded in the Rio Grande Valley with daytime temperature highs 
in the upper 70s to upper 80s. Local experts reported that some stands 
had emerged and were in the cotyledon stage. Fields near the coast in 
Cameron County were wet and soggy; therefore, planting was expected to 
be delayed a few weeks.  Fields in the Coastal Bend and Upper Coastal 
Counties were soft from rainfall and field preparations were halted.  
Widespread rainfall of up to 5 inches was received in the Blackland 
Prairies and in eastern Texas, which hindered field preparations.  
Seed was booked ahead of planting.  All gins in Kansas and Oklahoma 
continued providing pressing services. Outside weather conditions in 
Kansas were characterized by ice, sleet, and rain with daytime 
temperature highs in the low-to-high 30s and overnight lows in the 
teens to mid-20s.  Daytime temperature highs in Oklahoma were in the 
low 40s to mid-60s, and nighttime lows were in the low to mid-30s.  
Modules were transported from fields to the gin yards as space became 
available.  The National Cotton Council held regional webinars across 
the cotton belt presenting the new commodity provision for Seed Cotton 
contained in the revised Agriculture Act of 2014.  Associations, 
cooperatives, and gins hosted events during the sessions for producers 
to attend and participate in the teleconferences and webinars. 
Producers were encouraged by the revisions to the Agricultural Act 
of 2014, which is also known as the 2014 Farm Bill. 
    
West Texas 

Spot cotton trading was active.  Supplies and producer offerings 
were moderate.  Demand was moderate.  Average local spot prices were 
firm.  Producer interest in forward contracting was light.  Trading 
of CCC-loan equities was active.  Foreign inquiries were light.  
     
Daytime temperature highs were in the upper 20s to low 70s, and 
nighttime lows were in the single digits to upper 30s.  Fieldwork 
was active ahead of the cold front that moved into the region on 
February 20 and 21, which brought sleet, freezing drizzle, and icy 
road conditions. Evening shift work was cancelled at the Abilene 
Classing Office on February 21, and the daytime shift in the Lubbock 
Classing Office had a delayed start, due to inclement weather.  Lamesa 
received precipitation for the first time since last October in the 
form of ice, sleet, and rain.  According to local producer reports, 
fields have been chiseled.  Fertilizer and some herbicides have 
been applied. Ginning is winding down and more gins reported that 
they had ginned the last bale of the  2017-season.  A few gins 
reported that they were 30 to 40 days from finishing the season.  
Approximately 50 percent of the gins in the Southern Rolling     
Plains had completed operations. Sample receipts continued to 
decline at the Abilene, Lamesa, and Lubbock Classing Offices. 
The National Cotton Council held regional webinars across the cotton 
belt presenting the new commodity provision for Seed Cotton 
contained in the revised Agriculture Act of 2014.  Associations, 
cooperatives, and gins hosted events during the sessions for 
producers to attend and participate in the teleconferences and 
webinars.   

Trading 
 
East Texas 
..
In Oklahoma, a heavy volume of mostly color 21 and 31, leaf 3 
and better, staple 36 and longer, mike 34-48, strength 27-34, 
and uniformity 77-83 sold for around 79.50 cents per pound, 
FOB car/truck (compression charges not paid).    
..
A heavy volume of color 31 and better, leaf 4 and better, staple 
mostly 38 and 39, mike averaging 46.2, strength 27-31, and 
uniformity 80-81 sold for around 76.85 cents, same terms as above.     
..
A heavy volume of mostly color 21, leaf 3 and better, staple 34 
and 35, mike 34-48, strength 26-31, uniformity 77-82, and 25 
percent extraneous matter sold for around 72.25 cents, same terms as above.  
..
In Kansas, a light volume of mostly color 32 and better, leaf 2 
and 3, staple 35 and 36, mike 35-41, strength 29-30, uniformity 
79-80, and 50 percent extraneous matter sold for around 73.00 cents, 
same terms as above. 
..
A heavy volume of CCC-loan equities traded for 17.75 to 20.75 cents. 
 
West Texas 
..
A moderate volume of mostly color 21, leaf 1 and 2, staple 
mostly 37, mike 41-43, strength 26-28, and uniformity 78-80 
sold for around 76.00 cents per pound, FOB car/truck (compression charges not paid). 
..
A heavy volume of color 31 and better, leaf 3 and better, staple 33-36, 
mike 28-43, strength 25-31, and    uniformity 77-80 sold for around 
70.50 cents, same terms as above. 
..
A heavy volume of color 31 and 41, leaf 4 and better, staple 32-35, 
mike 33-38, strength 24-29, uniformity 75-81, and 25 percent 
extraneous matter sold for around 69.75 cents, same terms as above. 
..
A heavy volume of mostly color 22 and better, leaf 3 and better, 
staple 35 and longer, mike 25-32, strength 25-30, uniformity 77-80, 
and 50 percent extraneous matter sold for around 55.25 cents, same terms as above. 
..  
A heavy volume of CCC-loan equities traded for around 17.75 to 20.75 cents.  


Western Markets Regional Summary 
 

Desert Southwest (DSW) 

Spot cotton trading was active.  Supplies and producer offerings were 
moderate.  Demand was moderate.  Average local spot prices were higher. 
Producers delivered 2017-crop cotton to the co-op, merchant marketing 
pools, or into the CCC-loan program.  No forward contracting or domestic 
mill activity was reported.  Foreign mill inquiries were light.    
     
A cold front brought strong winds and chilly temperatures back to the DSW.  
Daytime temperatures were in the 70s early in the period and dropped into 
the low 60s mid-week in Yuma, AZ.  Overnight lows were in the mid-50s to 
high 40s.  The colder temperatures halted planting activities.  Local 
sources reported approximately 20 percent of the  crop has been planted 
in Yuma. Ginning continued in central Arizona. Fieldwork was active. New   
Mexico and El Paso, TX producers prepared fields for planting.  Sources 
reported that the Elephant Butte Irrigation District intends to make 
water available   for pre-plant irrigation sometime in early May.  An  
initial allotment of 8 inches was approved. Limited snowpack and dry 
conditions remain a concern.   
 
San Joaquin Valley (SJV)
 
Spot cotton trading was inactive.  Supplies were light.  Demand was 
moderate.  Average local spot prices were higher.  No forward contracting 
or domestic mill activity was reported.  Foreign mill inquiries were light.     
     
Freeze warnings were issued across much of California as a cold front 
brought strong winds and freezing temperatures back to the Valley. Snow 
showers were produced once the cold front hit the Sierra Nevada Mountain 
range.  Snow flurries were reported in elevations less than 3,000 feet, 
even the coastal range to the West received a light dusting of snow.  
Daytime high temperatures dropped into the low 50s and nighttime lows 
were in the 30s. Ginning was virtually completed. On February 20, the 
U.S. Bureau of Reclamation announced a 20 percent water allocation from 
the Central Valley Project to west side growers. The overall Sierra Nevada 
Mountain water content stands at 4.6 inches, according to the California 
Department of Water Resources. All regions of the Sierra Nevada Mountains 
are below normal snowpack.  Producers and ginners attended regional meetings.   
 
American Pima (AP)
 
Spot cotton trading was inactive. Supplies and producer offerings were 
light.  Demand was moderate.  Average local spot prices were steady.  
No forward contracting or domestic mill activity was reported.  Producers 
inquired for 2018-crop contracts. No contracts were signed. Foreign mill 
inquiries were light and mostly for 2018-crop price discovery.  According 
to the Foreign Agricultural Service   Export Sales report, approximately 
520,800 bales of 2017-crop AP was committed for the week ending February 15.   
    
Freezing temperatures entered the Far West region mid-week.  Daytime highs 
were in the 50s and 60s.  Overnight lows were in the 30s and 40s.  No rainfall 
was recorded in the period.  Fieldwork was active.  Ginning continued in 
Arizona and California.  Planted was stopped in Yuma, AZ as soil 
temperatures were chilled.  Producers and ginners attended regional meetings.   

Trading 
 
Desert Southwest 
..
In Arizona, a heavy volume of color 21, leaf 2, and staple 36 and longer, 
with mike 35-49 sold for around 100 points on ICE May futures, uncompressed, 
FOB warehouse.   
..
In New Mexico, a light volume of color 31 and 41, leaf 2 and 3, staple 35 
and 36, mike 37-40, strength    averaging 29.5, and uniformity averaging 
79.5 sold for around 73.00 cents per pound, FOB car/truck (compression charges not paid). 
..
A moderate  volume of mostly color 31 and better, leaf 3 and better,  
staple 32-35, mike averaging 39.0, strength averaging 27.5, and uniformity 
averaging 79.8 sold for 70.00 to 71.50 cents, same terms as above.   
..
Mixed lots containing color 52 and better, leaf mostly 4-7, staple 34 and 35, 
mike 40-47, strength 25-27, uniformity 78-80, with 100 percent extraneous matter 
(a combination of bark and grass) sold for around 62.50 cents, same terms as above.   
..
A light volume of CCC-loan equities sold for around 20.50 cents.   

San Joaquin Valley 
..
No trading activity was reported. 

American Pima 
..
No trading activity was reported. 









 




 



 




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