Weekly Cotton Market Review - Amazon Simple Storage Service (S3)
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Mp_cn812
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 8 September 22, 2017 Inside this Issue Market Overview Price Support
Spot Quotations ICE Futures
Average quotations were 224 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 27.028.9, uniformity 81.0-81.9) in the seven designated markets averaged 67.71 cents per pound for the week ending Thursday, September 21, 2017. The weekly average was down from 69.95 last week, and from 68.60 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 68.16 cents Friday, September 15 to a low of 66.89 cents Thursday, September 21. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 21 totaled 3,280 bales. This compares to 2,403 bales reported last week and 5,901 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 30,478 bales compared to 21,032 bales the corresponding week a year ago. The ICE December settlement prices ended the week at 68.25 cents, compared to 69.12 cents last week.
A Index
Average Prices 41-4-34
Southeastern Textile Mill Report South Central Southwestern Western
Date
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Friday Monday Tuesday
15-Sep 18-Sep 19-Sep
70.13 70.25 70.02
69.38 69.50 69.27
69.38 69.50 69.27
69.25 68.75 68.75
68.75 68.25 68.25
64.63 64.25 64.02
65.63 65.25 65.02
68.16 67.96 67.80
Wednesday Thursday
20-Sep 21-Sep
70.00 69.00
69.25 68.25
69.25 68.25
68.50 68.00
68.25 67.75
64.00 63.00
65.00 64.00
67.75 66.89
Average Prices 31-3-35
Pima Quotations
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Friday
Date 15-Sep
71.38
70.63
70.63
70.75
70.25
68.63
74.53
70.97
Monday
18-Sep
71.50
70.75
70.75
70.25
69.75
68.25
74.15
70.77
Tuesday
19-Sep
71.27
70.52
70.52
70.25
69.75
68.02
73.92
70.61
Wednesday
20-Sep
71.25
70.50
70.50
70.00
69.75
68.00
73.90
70.56
Thursday
21-Sep
70.25
69.50
69.50
69.50
69.25
67.00
72.90
69.70
Color 41, Leaf 4, Staple 34 Futures Settlement Oct-17
Dec-17
Mar-18
May-18
Jul-18
Oct-18
Far Eastern A Index 1/ Current
70.13 70.41 69.98 70.04 69.04
69.07 69.50 69.27 69.25 68.25
67.99 68.90 68.30 68.51 67.58
68.48 69.31 68.77 69.03 68.17
68.86 69.37 69.23 69.50 68.69
67.33 68.15 67.60 67.84 67.17
79.10 78.90 79.70 79.35 79.50
Cotton Market Reports
Date Subscribe to this report
Subscribe to all Cotton Market reports
Friday Monday Tuesday Wednesday Thursday
15-Sep 18-Sep 19-Sep 20-Sep 21-Sep
Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
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 weather conditions prevailed across Georgia, Alabama, and the Florida Panhandle during the period. Daytime high temperatures were in the upper 80s to lower 90s, while nighttime temperature were in the low to mid-60s. Less than one-quarter of an inch of precipitation was recorded during the period. Reports estimated the crop in the lower Southeast maybe at a 10 to 15 percent loss from the damage caused by Hurricane Irma. Twisted, tangled stands are a main concern, which will complicate picking. Defoliation was well underway in most of the region and harvesting has begun on a limited scale. In Georgia, one gin has multiple modules on the yard waiting to be ginned. Harvesting and ginning are expected to ramp up in the next two weeks. Throughout the Carolinas and Virginia, daytime temperatures ranged from the mid-80s to mid -90s. No rainfall was recorded. Defoliation had begun in some areas, while others are slightly behind schedule. In the Carolinas, some fields have already been picked and filled with modules to be taken to gin yards. Harvesting and ginning are expected to be
in full force in the next two weeks. According to the National Agricultural Statistics Service’s Crop Progress report released September 18, cotton bolls opening in Georgia had reached 65 percent, South Carolina 63, North Carolina 55, Alabama 52, and Virginia 40 percent. Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for December delivery. No sales were reported. Yarn demand was moderate-to-good. Demand for denim continues to be slow in the retail sector. Most mills operated five to seven days. Demand through export channels was good. Representatives for mills in Taiwan purchased a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 36 for December shipment. Representatives from Turkey purchased a moderate volume of USDA Green Card Class, color 41, leaf 4, and stable 37 for November 2017 through May 2018 shipment.
Trading A light volume mixed lot of 2016-crop cotton, color 53 and better, leaf 2-5, staple 31-37, mike 38-54, strength 25-32, and uniformity 78-84 sold for around 63.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Hot, mostly dry weather prevailed during the week throughout the region. Afternoon thundershowers brought light amounts of precipitation to localized areas. Reported accumulations were less than two-tenths of an inch of moisture. Daytime temperatures were in the low 90s and overnight lows were in the 70s. The crop made excellent progress thanks to the high temperatures and mostly clear skies. Defoliation is underway, and harvesting is expected to begin shortly. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 18, open bolls reached 70 percent in Arkansas, 62 in Missouri, and 50 percent in Tennessee. NASS reported the crop condition in Arkansas was rated at 81 percent good-to -excellent, compared with 57 percent in Missouri and 86 percent in good-to-excellent condition in Tennessee.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Clear skies and high temperatures dominated the weather pattern during the week. Pop-up thundershowers brought less than one-ten of an inch to isolated areas. Daytime temperatures were in the low 90s and overnight lows were in the 70s. Defoliation expanded under good weather conditions. Harvesting activities gained momentum. Ginning had begun on a very limited basis in Louisiana and continued slowly in Mississippi. Fall tillage and field preparation for next season was underway. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 18, open bolls reached 93 percent in Louisiana, compared to 61 percent in Mississippi. NASS reported 48 percent of the crop was in good to excellent condition in Louisiana, compared to 66 percent in Mississippi.
Trading North Delta A light volume of 2016-crop cotton, color 41 and better, leaf 5 and better, staple 33-41, mike 35-49, strength 25-33, and uniformity 77-83 traded at around 66.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). No trading activity was reported.
South Delta
3
4
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
East Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was very good. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light to moderate. Interest was best from China, Indonesia, and Pakistan. Ginning continued in the Rio Grande Valley; although, some gins had completed operations for the season. Stalks were shredded. Reports from the Gulf Coast indicated that Hurricane Harvey losses were not as great as originally thought. Some parts of modules that were damaged were able to be ginned. Decisions were made on a module by module basis, because of different factors including if the tarps blew off or held on, and how much water were the modules exposed to in the fields. Location and types of modules also played a role. Modules that were stored on higher ground were exposed to less standing water. According to local reports, the round modules sustained less damage than the rectangular modules. Ginning was at a slower pace. The trucking infrastructure slowed the transportation of bales to shipping points. Different segments of the industry continued to meet and work together to resolve issues and move forward the 2017-cotton season of South Texas. The Kansas crop continued to mature and bolls cracked open. Industry members prepared for processing a larger-than-normal crop. In eastern Kansas, producers began to apply boll openers and defoliants. The first modules were transported to a gin yard. Ginning was expected to begin next week or after October 1. In western Kansas, the crop
needed more heat units and time to finish. Ginning is expected to begin the first week of November. Field activity increased in Oklahoma and some modules were transported to the gin yards, but were not expected to be ginned until October 1 or later. Applications of harvest aids and defoliants were applied. Harvesting was limited and expected to expand in 2 to 3 weeks. Some areas received as much as 2 inches of rainfall that brought high winds that were sustained for 15 minutes or longer. Some fields were damaged. 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 inactive. Foreign inquiries were light to moderate. Interest was best from China, Indonesia, and Pakistan. Boll openers and defoliants were applied on some fields. A few fields have been harvested, mostly in the Rolling Plains and Southern Low Plains. Modules had begun to accumulate on gin yards. Ginning was not expected to begin until after October 1. According to local reports, some late planted stands had irrigation water applied. A wet macroburst on September 17, caused widespread loss north of Lubbock. Damage assessments were ongoing, but according to local reports, the leaves were stripped from the stands with some of the bolls left intact. The nearby forecast shows strong storm chances at a time when most fields no longer need rainfall. Industry meetings were attended.
5
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
Trading East Texas A light volume of mostly color 11, leaf 2 and 3, staple 38 and 39, mike averaging 42.9, strength averaging 31.0, and uniformity 81-83 sold for around 70.00 cents per pound, FOB warehouse (compression charges not paid). A mixed lot containing a light volume of color 12 and better, leaf 2-3, staple 35, mike averaging 43.2, strength 26-35, and uniformity 78-81 sold for around 67.75 cents, same terms as above. A light volume of color mostly 41 and 42, leaf 3-5, staple 35 and 36, mike 45-46, strength averaging 28.9, and uniformity 78-81 sold for around 64.25 cents, same terms as above. West Texas A light volume of 2013-crop cotton mostly color 21, leaf 2 and 3, staple 34 and 35, mike averaging 38.7, strength averaging 31.8, and uniformity 77-81 sold for around 63.25 cents per pound, FOB car/truck (compression charges not paid).
6
Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the high 90s to low 100s. No moisture was recorded in the period. Ginning continued uninterrupted in Yuma, Arizona. Defoliation and harvesting activities were active in central Arizona. No ginning was reported. The crop made good progress in Safford. Producers attended annual meetings. The crop advanced in New Mexico and El Paso, Texas. Local sources reported the area received too much moisture from monsoon activity during the growing season, which could push the crop a little later than normal. Producers readied equipment for harvest. Gin repairs continued. San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light and mostly for price discovery. Temperatures were mild, mostly in the 80s early week. Partly cloudy skies and an off-shore low pressure system lowered daytime temperatures into the 70s late in the period. Overnight lows were in the
50s. Scattered showers brought less than one-tenth of an inch of rainfall to the Valley on Thursday, September 21. The first snowfall was deposited above 8,000 feet in the Sierra Nevada Mountain range. Heat units were needed for late-planted fields as bolls needed additional heat to reach maturity. The effects of the first shot of defoliation were seen in several Tulare County fields. Ginning was not expected to begin until the second week of October. American Pima (AP)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were slow. No new sales were reported. Temperatures were mostly in the 80s and 90s for much of the far west. Daytime temperatures dropped into the 70s in California late in the period. A cold front brought gusty conditions and scattered showers to California. Defoliation and harvesting activities advanced in central Arizona. No ginning was reported. Defoliation began in the most mature San Joaquin Valley fields, but was limited. Ginning was expected to begin around the second week of October. The crop in New Mexico and El Paso, Texas made good progress, with about three weeks of the growing season left.
Trading No trading activity was reported. No trading activity was reported. No trading activity was reported.
Desert Southwest San Joaquin Valley American Pima
7
San Joaquin Valley Tulare County Fields
8
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2017-2018 Description
August
August
Sept
Sept
Sept
Sept
18-24
25-31
1-7
8-14
15-21
22-28
Adjusted world price 1/
59.70
59.65
61.85
64.13
63.27
60.91
Course count adjustment
0.00
0.00
0.00
0.00
0.00
0.00
Fine count adjustment 2016
0.43
0.48
0.65
0.63
0.73
0.69
Fine count adjustment 2017
0.58
0.63
0.80
0.78
0.88
0.84
Loan Deficiency Payment (LDP)
0.00
0.00
0.00
0.00
0.00
0.00
1/ Color 41, leaf 4, staple 34, mike 35-36 & 43-49, strength readings of 26.0-28.9 grams per tex, length uniformity of 80.0-81.9 percent. Source: Farm Service Agency, USDA. Description
2016-2017
2017-2018
Through September 15, 2016
Through September 14, 2017
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
3,717,800
-
5,898,200
Exports
157,700
1,189,200
175,700
1,141,000
-
4,907,000
New sales
200,700
-
228,200
-
Buy-backs and cancellations
2,800
-
8,300
-
197,900
-
219,900
-
Total export commitments
Net sales
7,039,200
Net sales of 219,900 RB for 2017/2018 were up noticeably from the previous week and 28 percent from the prior 4-week average. Increases were reported for Turkey (91,300 RB), Vietnam (46,100 RB, including 2,600 RB switched from South Korea), China (18,500 RB), Bangladesh (11,000 RB), Thailand (10,500 RB, including 1,000 RB switched from Japan), and Costa Rica (9,200 RB). Reductions were reported for Japan (400 RB). For 2018/2019, net sales of 37,100 RB were reported for China (22,000 RB), Pakistan (13,200 RB), and Costa Rica (1,900 RB). Exports of 175,700 RB were up 62 percent from the previous week and 8 percent from the prior 4-week average. Exports were reported primarily to Vietnam (62,600 RB), China (32,400 RB), Mexico (17,200 RB), India (15,600 RB), and Indonesia (10,900 RB). Net sales of Pima totaling 58,500 RB for 2017/2018 were up noticeably from the previous week and from the prior 4-week average. Increases were reported primarily for India (47,500 RB), China (7,300 RB), and Turkey (1,200 RB). Reductions were reported for Bangladesh (200 RB). For 2018/2019, net sales of 19,700 RB were reported for India. Exports of 5,600 RB were up 53 percent from the previous week and up noticeably from the prior 4-week average. The primary destinations were China (2,300 RB), India (1,700 RB), and Thailand (1,100 RB). Optional Origin Sales: For 2017/2018, new optional origin sales of 8,600 RB were reported for Indonesia. The current optional origin outstanding balance of 16,500 RB is for Indonesia. Exports for Own Account: Exports to Indonesia (6,600 RB) and Vietnam (400 RB) were applied to new or outstanding sales. The current outstanding balance of 72,200 RB is for Indonesia (48,400 RB), Taiwan (13,100 RB), India (3,800 RB), Bangladesh (2,800 RB), South Korea (2,100 RB), Vietnam (1,500 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
September 21, 2017
USDA ANNOUNCES SPECIAL IMPORT QUOTA #22 FOR UPLAND COTTON September 21, 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 September 28, 2017, allowing importation of 12,798,043 kilograms (58,780 bales) of upland cotton. Quota number 22 will be established as of September 28, 2017, and will apply to upland cotton purchased not later than December 26, 2017, and entered into the U.S. not later than March 26, 2018. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period May 2017 through July 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.
9
Number of Bales in Certificated Stocks Stocks as of 9-21-2017
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
357
0
0
Galveston, TX
71
0
0
Greenville, SC
57
0
0
Houston, TX
165
0
0
Memphis, TN
1,730
0
0
Total
2,380
0
0
Delivery Points
Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. 31-3 68.50 69.75 70.25 71.75
SOUTHEAST 41-4 51-5 67.00 63.50 69.00 64.50 69.50 65.00 71.25 65.25 21-2 65.00 65.50 67.25 68.75 70.25 71.00 71.75 71.75
42-4 64.75 66.25 66.25 66.50
31-3 67.25 69.00 69.50 71.75
EAST TEXAS-OKLAHOMA 31-3 41-4 64.25 62.75 65.00 64.25 67.00 65.25 68.75 68.00 69.50 68.00 69.75 68.50 70.00 68.75 70.00 70.00
NORTH DELTA 41-4 51-5 65.50 61.00 68.25 62.50 68.75 63.50 70.00 63.75 42-4 61.75 62.75 63.50 67.00 67.00 67.25 67.25 67.25
21-2 65.00 66.00 68.00 68.50 70.50 70.75 71.50 71.50
42-4 63.75 64.50 65.25 65.25
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 63.50 61.75 65.25 63.75 67.00 64.50 67.75 67.75 69.25 67.75 70.00 68.50 70.50 69.00 70.75 69.75
42-4 60.75 62.50 63.50 65.50 66.25 68.00 68.00 68.00
SOUTH DELTA 41-4 51-5 65.50 61.00 68.25 62.50 68.75 63.50 70.00 63.75
31-3 67.25 69.00 69.50 71.75
Staple 26-31 32 33 34 35 36 37 38
21-2
68.15 74.40 77.90 79.40 81.65
42-4 63.75 64.50 65.25 65.50
21-2 62.00 64.25 68.50 69.10
SAN JOAQUIN VALLEY 31-3 41-4
66.65 72.90 76.40 77.65 79.40
64.00 66.00 66.80 66.90 66.90
DESERT SOUTHWEST 31-3 41-4 61.25 56.75 63.50 63.00 67.00 63.25 68.35 63.35
51-5 55.00 55.50 57.25 57.50
32-3
63.50 66.00 66.75 67.25 68.25
MIKE DIFFERENCES - POINTS PER POUND
SOUTHEAST
-425 -350 -300 -250 -200 -25 0 0 25 50 50
NORTH DELTA
SOUTH DELTA
-300 -250 -200 -175 -150 -25 0 0 25 50 50
-275 -225 -200 -175 -150 -25 0 0 25 50 50
SOUTH-
NORTH
SOUTH
E. TX
EAST
DELTA
DELTA
-825 -425 -275 -150 0 0 0 -200 -375
-1000 -650 -325 -125 0 25 0 -225 -375
-1100 -750 -325 -125 0 25 0 -225 -375
OK -1100 -1000 -750 -500 -350 0 0 0 -225 -400
STRENGTH DIFFERENCES E. TX Grams WEST OK per tex TEXAS -250 19.0 - 19.9 -250 -250 20.0 - 20.9 -250 -225 21.0 - 21.9 -225 -200 22.0 - 22.9 -200 -175 23.0 - 23.9 -175 -175 24.0 - 24.9 -175 -150 25.0 - 25.9 -150 -100 26.0 - 26.9 -100 0 Base 27.0 - 28.9 0 0 29.0 - 29.9 0 25 30.0 - 30.9 25 25 31.0 - 32.9 25 25 33.0 & above 25
Mike Ranges 24 & Below 25-26 27-29 30-32 33-34 Base 35-36 37-42 Base 43-49 50-52 53 & Above
DESERT SW
SJ VALLEY
-600 -450 -300 -225 -200 -125 0 0 25 50 100
-500 -400 -300 0 0 75 125 250
AVG. -250 -250 -342 -279 -225 -239 -200 -100 0 0 32 54 79
SOUTHEAST -125 -110 -100 -25 0 0 20 30 40 50
NORTH DELTA -90 -80 -70 0 0 0 30 40 50 60
WEST
DESERT
SJ
TEXAS -1100 -1000 -750 -500 -350 0 0 0 -225 -400
SW -1200 -1000 -900 -500 -300 0 25 0 -300 -550
VALLEY
SOUTH DELTA -90 -80 -70 0 0 0 30 40 50 60
UNIFORMITY DIFFERENCES E. TX Unit WEST OK TEXAS -90 77 & below -90 -75 78 -75 -60 79 -60 0 80 0 0 Base 81 0 0 82 0 10 83 0 10 84 10 20 85 20 30 86 & above 30
-1600 -1000 -500 0 25 0 -500
AVG. -1133 -988 -832 -489 -271 0 14 0 -271 -413 DESERT SJ SW VALLEY -100 -60 -90 -50 -80 -40 0 0 0 0 0 50 30 80 40 90 50 100 60 110
AVG. -92 -80 -69 -4 0 7 29 37 47 57
September 21, 2017
10
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color
Leaf
Staple 44
46
48
1
1
138.50
146.50
147.75
2
138.25
146.25
147.50
3
130.50
137.50
137.75
1
138.25
146.25
147.50
2
138.00
146.00
147.25
3
130.25
137.25
137.50
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, 2017.
5 6 2
4
120.25
127.75
128.00
5 6 3
Mike Range
Diff.
26 & Below
-1900
27-29
-1400
30-32
-900
1
128.00
135.00
135.25
2
125.50
132.50
132.75
33-34
-400
3
124.25
131.25
131.50
35 & Above
0
4
115.25
122.25
122.50
5
99.25
105.75
106.00 Strength
6 4
1
109.00
116.00
117.00
2
108.75
115.75
116.25
Range
Diff.
3
108.50
115.50
115.50
35.4 & Below
-1350
4
103.50
110.50
110.50
35.5-36.4
-1100
5
92.25
99.25
99.25
36.5-37.4
-850
37.5 & Above
0
6 5
1 2
88.00
97.25
97.25
3
88.00
96.75
97.25
4
88.00
91.25
91.25
5
87.75
91.00
91.00
6 6
(Grams per Tex)
Extraneous Matter Level
Diff.
Prep
1 2
80.25
82.50
82.50
3
80.25
82.50
82.50
1 2
4
80.25
82.50
82.50
Other
-810 -1095
5
80.00 82.25 82.25 1 -715 2 6 79.50 81.75 81.75 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
September 21, 2017
11
Mp_cn812
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 8 September 22, 2017 Inside this Issue Market Overview Price Support
Spot Quotations ICE Futures
Average quotations were 224 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 27.028.9, uniformity 81.0-81.9) in the seven designated markets averaged 67.71 cents per pound for the week ending Thursday, September 21, 2017. The weekly average was down from 69.95 last week, and from 68.60 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 68.16 cents Friday, September 15 to a low of 66.89 cents Thursday, September 21. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 21 totaled 3,280 bales. This compares to 2,403 bales reported last week and 5,901 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 30,478 bales compared to 21,032 bales the corresponding week a year ago. The ICE December settlement prices ended the week at 68.25 cents, compared to 69.12 cents last week.
A Index
Average Prices 41-4-34
Southeastern Textile Mill Report South Central Southwestern Western
Date
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Friday Monday Tuesday
15-Sep 18-Sep 19-Sep
70.13 70.25 70.02
69.38 69.50 69.27
69.38 69.50 69.27
69.25 68.75 68.75
68.75 68.25 68.25
64.63 64.25 64.02
65.63 65.25 65.02
68.16 67.96 67.80
Wednesday Thursday
20-Sep 21-Sep
70.00 69.00
69.25 68.25
69.25 68.25
68.50 68.00
68.25 67.75
64.00 63.00
65.00 64.00
67.75 66.89
Average Prices 31-3-35
Pima Quotations
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Friday
Date 15-Sep
71.38
70.63
70.63
70.75
70.25
68.63
74.53
70.97
Monday
18-Sep
71.50
70.75
70.75
70.25
69.75
68.25
74.15
70.77
Tuesday
19-Sep
71.27
70.52
70.52
70.25
69.75
68.02
73.92
70.61
Wednesday
20-Sep
71.25
70.50
70.50
70.00
69.75
68.00
73.90
70.56
Thursday
21-Sep
70.25
69.50
69.50
69.50
69.25
67.00
72.90
69.70
Color 41, Leaf 4, Staple 34 Futures Settlement Oct-17
Dec-17
Mar-18
May-18
Jul-18
Oct-18
Far Eastern A Index 1/ Current
70.13 70.41 69.98 70.04 69.04
69.07 69.50 69.27 69.25 68.25
67.99 68.90 68.30 68.51 67.58
68.48 69.31 68.77 69.03 68.17
68.86 69.37 69.23 69.50 68.69
67.33 68.15 67.60 67.84 67.17
79.10 78.90 79.70 79.35 79.50
Cotton Market Reports
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Friday Monday Tuesday Wednesday Thursday
15-Sep 18-Sep 19-Sep 20-Sep 21-Sep
Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
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 weather conditions prevailed across Georgia, Alabama, and the Florida Panhandle during the period. Daytime high temperatures were in the upper 80s to lower 90s, while nighttime temperature were in the low to mid-60s. Less than one-quarter of an inch of precipitation was recorded during the period. Reports estimated the crop in the lower Southeast maybe at a 10 to 15 percent loss from the damage caused by Hurricane Irma. Twisted, tangled stands are a main concern, which will complicate picking. Defoliation was well underway in most of the region and harvesting has begun on a limited scale. In Georgia, one gin has multiple modules on the yard waiting to be ginned. Harvesting and ginning are expected to ramp up in the next two weeks. Throughout the Carolinas and Virginia, daytime temperatures ranged from the mid-80s to mid -90s. No rainfall was recorded. Defoliation had begun in some areas, while others are slightly behind schedule. In the Carolinas, some fields have already been picked and filled with modules to be taken to gin yards. Harvesting and ginning are expected to be
in full force in the next two weeks. According to the National Agricultural Statistics Service’s Crop Progress report released September 18, cotton bolls opening in Georgia had reached 65 percent, South Carolina 63, North Carolina 55, Alabama 52, and Virginia 40 percent. Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for December delivery. No sales were reported. Yarn demand was moderate-to-good. Demand for denim continues to be slow in the retail sector. Most mills operated five to seven days. Demand through export channels was good. Representatives for mills in Taiwan purchased a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 36 for December shipment. Representatives from Turkey purchased a moderate volume of USDA Green Card Class, color 41, leaf 4, and stable 37 for November 2017 through May 2018 shipment.
Trading A light volume mixed lot of 2016-crop cotton, color 53 and better, leaf 2-5, staple 31-37, mike 38-54, strength 25-32, and uniformity 78-84 sold for around 63.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
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South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Hot, mostly dry weather prevailed during the week throughout the region. Afternoon thundershowers brought light amounts of precipitation to localized areas. Reported accumulations were less than two-tenths of an inch of moisture. Daytime temperatures were in the low 90s and overnight lows were in the 70s. The crop made excellent progress thanks to the high temperatures and mostly clear skies. Defoliation is underway, and harvesting is expected to begin shortly. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 18, open bolls reached 70 percent in Arkansas, 62 in Missouri, and 50 percent in Tennessee. NASS reported the crop condition in Arkansas was rated at 81 percent good-to -excellent, compared with 57 percent in Missouri and 86 percent in good-to-excellent condition in Tennessee.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Clear skies and high temperatures dominated the weather pattern during the week. Pop-up thundershowers brought less than one-ten of an inch to isolated areas. Daytime temperatures were in the low 90s and overnight lows were in the 70s. Defoliation expanded under good weather conditions. Harvesting activities gained momentum. Ginning had begun on a very limited basis in Louisiana and continued slowly in Mississippi. Fall tillage and field preparation for next season was underway. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 18, open bolls reached 93 percent in Louisiana, compared to 61 percent in Mississippi. NASS reported 48 percent of the crop was in good to excellent condition in Louisiana, compared to 66 percent in Mississippi.
Trading North Delta A light volume of 2016-crop cotton, color 41 and better, leaf 5 and better, staple 33-41, mike 35-49, strength 25-33, and uniformity 77-83 traded at around 66.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). No trading activity was reported.
South Delta
3
4
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
East Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was very good. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light to moderate. Interest was best from China, Indonesia, and Pakistan. Ginning continued in the Rio Grande Valley; although, some gins had completed operations for the season. Stalks were shredded. Reports from the Gulf Coast indicated that Hurricane Harvey losses were not as great as originally thought. Some parts of modules that were damaged were able to be ginned. Decisions were made on a module by module basis, because of different factors including if the tarps blew off or held on, and how much water were the modules exposed to in the fields. Location and types of modules also played a role. Modules that were stored on higher ground were exposed to less standing water. According to local reports, the round modules sustained less damage than the rectangular modules. Ginning was at a slower pace. The trucking infrastructure slowed the transportation of bales to shipping points. Different segments of the industry continued to meet and work together to resolve issues and move forward the 2017-cotton season of South Texas. The Kansas crop continued to mature and bolls cracked open. Industry members prepared for processing a larger-than-normal crop. In eastern Kansas, producers began to apply boll openers and defoliants. The first modules were transported to a gin yard. Ginning was expected to begin next week or after October 1. In western Kansas, the crop
needed more heat units and time to finish. Ginning is expected to begin the first week of November. Field activity increased in Oklahoma and some modules were transported to the gin yards, but were not expected to be ginned until October 1 or later. Applications of harvest aids and defoliants were applied. Harvesting was limited and expected to expand in 2 to 3 weeks. Some areas received as much as 2 inches of rainfall that brought high winds that were sustained for 15 minutes or longer. Some fields were damaged. 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 inactive. Foreign inquiries were light to moderate. Interest was best from China, Indonesia, and Pakistan. Boll openers and defoliants were applied on some fields. A few fields have been harvested, mostly in the Rolling Plains and Southern Low Plains. Modules had begun to accumulate on gin yards. Ginning was not expected to begin until after October 1. According to local reports, some late planted stands had irrigation water applied. A wet macroburst on September 17, caused widespread loss north of Lubbock. Damage assessments were ongoing, but according to local reports, the leaves were stripped from the stands with some of the bolls left intact. The nearby forecast shows strong storm chances at a time when most fields no longer need rainfall. Industry meetings were attended.
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Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
Trading East Texas A light volume of mostly color 11, leaf 2 and 3, staple 38 and 39, mike averaging 42.9, strength averaging 31.0, and uniformity 81-83 sold for around 70.00 cents per pound, FOB warehouse (compression charges not paid). A mixed lot containing a light volume of color 12 and better, leaf 2-3, staple 35, mike averaging 43.2, strength 26-35, and uniformity 78-81 sold for around 67.75 cents, same terms as above. A light volume of color mostly 41 and 42, leaf 3-5, staple 35 and 36, mike 45-46, strength averaging 28.9, and uniformity 78-81 sold for around 64.25 cents, same terms as above. West Texas A light volume of 2013-crop cotton mostly color 21, leaf 2 and 3, staple 34 and 35, mike averaging 38.7, strength averaging 31.8, and uniformity 77-81 sold for around 63.25 cents per pound, FOB car/truck (compression charges not paid).
6
Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the high 90s to low 100s. No moisture was recorded in the period. Ginning continued uninterrupted in Yuma, Arizona. Defoliation and harvesting activities were active in central Arizona. No ginning was reported. The crop made good progress in Safford. Producers attended annual meetings. The crop advanced in New Mexico and El Paso, Texas. Local sources reported the area received too much moisture from monsoon activity during the growing season, which could push the crop a little later than normal. Producers readied equipment for harvest. Gin repairs continued. San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light and mostly for price discovery. Temperatures were mild, mostly in the 80s early week. Partly cloudy skies and an off-shore low pressure system lowered daytime temperatures into the 70s late in the period. Overnight lows were in the
50s. Scattered showers brought less than one-tenth of an inch of rainfall to the Valley on Thursday, September 21. The first snowfall was deposited above 8,000 feet in the Sierra Nevada Mountain range. Heat units were needed for late-planted fields as bolls needed additional heat to reach maturity. The effects of the first shot of defoliation were seen in several Tulare County fields. Ginning was not expected to begin until the second week of October. American Pima (AP)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were slow. No new sales were reported. Temperatures were mostly in the 80s and 90s for much of the far west. Daytime temperatures dropped into the 70s in California late in the period. A cold front brought gusty conditions and scattered showers to California. Defoliation and harvesting activities advanced in central Arizona. No ginning was reported. Defoliation began in the most mature San Joaquin Valley fields, but was limited. Ginning was expected to begin around the second week of October. The crop in New Mexico and El Paso, Texas made good progress, with about three weeks of the growing season left.
Trading No trading activity was reported. No trading activity was reported. No trading activity was reported.
Desert Southwest San Joaquin Valley American Pima
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San Joaquin Valley Tulare County Fields
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World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2017-2018 Description
August
August
Sept
Sept
Sept
Sept
18-24
25-31
1-7
8-14
15-21
22-28
Adjusted world price 1/
59.70
59.65
61.85
64.13
63.27
60.91
Course count adjustment
0.00
0.00
0.00
0.00
0.00
0.00
Fine count adjustment 2016
0.43
0.48
0.65
0.63
0.73
0.69
Fine count adjustment 2017
0.58
0.63
0.80
0.78
0.88
0.84
Loan Deficiency Payment (LDP)
0.00
0.00
0.00
0.00
0.00
0.00
1/ Color 41, leaf 4, staple 34, mike 35-36 & 43-49, strength readings of 26.0-28.9 grams per tex, length uniformity of 80.0-81.9 percent. Source: Farm Service Agency, USDA. Description
2016-2017
2017-2018
Through September 15, 2016
Through September 14, 2017
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
3,717,800
-
5,898,200
Exports
157,700
1,189,200
175,700
1,141,000
-
4,907,000
New sales
200,700
-
228,200
-
Buy-backs and cancellations
2,800
-
8,300
-
197,900
-
219,900
-
Total export commitments
Net sales
7,039,200
Net sales of 219,900 RB for 2017/2018 were up noticeably from the previous week and 28 percent from the prior 4-week average. Increases were reported for Turkey (91,300 RB), Vietnam (46,100 RB, including 2,600 RB switched from South Korea), China (18,500 RB), Bangladesh (11,000 RB), Thailand (10,500 RB, including 1,000 RB switched from Japan), and Costa Rica (9,200 RB). Reductions were reported for Japan (400 RB). For 2018/2019, net sales of 37,100 RB were reported for China (22,000 RB), Pakistan (13,200 RB), and Costa Rica (1,900 RB). Exports of 175,700 RB were up 62 percent from the previous week and 8 percent from the prior 4-week average. Exports were reported primarily to Vietnam (62,600 RB), China (32,400 RB), Mexico (17,200 RB), India (15,600 RB), and Indonesia (10,900 RB). Net sales of Pima totaling 58,500 RB for 2017/2018 were up noticeably from the previous week and from the prior 4-week average. Increases were reported primarily for India (47,500 RB), China (7,300 RB), and Turkey (1,200 RB). Reductions were reported for Bangladesh (200 RB). For 2018/2019, net sales of 19,700 RB were reported for India. Exports of 5,600 RB were up 53 percent from the previous week and up noticeably from the prior 4-week average. The primary destinations were China (2,300 RB), India (1,700 RB), and Thailand (1,100 RB). Optional Origin Sales: For 2017/2018, new optional origin sales of 8,600 RB were reported for Indonesia. The current optional origin outstanding balance of 16,500 RB is for Indonesia. Exports for Own Account: Exports to Indonesia (6,600 RB) and Vietnam (400 RB) were applied to new or outstanding sales. The current outstanding balance of 72,200 RB is for Indonesia (48,400 RB), Taiwan (13,100 RB), India (3,800 RB), Bangladesh (2,800 RB), South Korea (2,100 RB), Vietnam (1,500 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
September 21, 2017
USDA ANNOUNCES SPECIAL IMPORT QUOTA #22 FOR UPLAND COTTON September 21, 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 September 28, 2017, allowing importation of 12,798,043 kilograms (58,780 bales) of upland cotton. Quota number 22 will be established as of September 28, 2017, and will apply to upland cotton purchased not later than December 26, 2017, and entered into the U.S. not later than March 26, 2018. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period May 2017 through July 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.
9
Number of Bales in Certificated Stocks Stocks as of 9-21-2017
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
357
0
0
Galveston, TX
71
0
0
Greenville, SC
57
0
0
Houston, TX
165
0
0
Memphis, TN
1,730
0
0
Total
2,380
0
0
Delivery Points
Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. 31-3 68.50 69.75 70.25 71.75
SOUTHEAST 41-4 51-5 67.00 63.50 69.00 64.50 69.50 65.00 71.25 65.25 21-2 65.00 65.50 67.25 68.75 70.25 71.00 71.75 71.75
42-4 64.75 66.25 66.25 66.50
31-3 67.25 69.00 69.50 71.75
EAST TEXAS-OKLAHOMA 31-3 41-4 64.25 62.75 65.00 64.25 67.00 65.25 68.75 68.00 69.50 68.00 69.75 68.50 70.00 68.75 70.00 70.00
NORTH DELTA 41-4 51-5 65.50 61.00 68.25 62.50 68.75 63.50 70.00 63.75 42-4 61.75 62.75 63.50 67.00 67.00 67.25 67.25 67.25
21-2 65.00 66.00 68.00 68.50 70.50 70.75 71.50 71.50
42-4 63.75 64.50 65.25 65.25
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 63.50 61.75 65.25 63.75 67.00 64.50 67.75 67.75 69.25 67.75 70.00 68.50 70.50 69.00 70.75 69.75
42-4 60.75 62.50 63.50 65.50 66.25 68.00 68.00 68.00
SOUTH DELTA 41-4 51-5 65.50 61.00 68.25 62.50 68.75 63.50 70.00 63.75
31-3 67.25 69.00 69.50 71.75
Staple 26-31 32 33 34 35 36 37 38
21-2
68.15 74.40 77.90 79.40 81.65
42-4 63.75 64.50 65.25 65.50
21-2 62.00 64.25 68.50 69.10
SAN JOAQUIN VALLEY 31-3 41-4
66.65 72.90 76.40 77.65 79.40
64.00 66.00 66.80 66.90 66.90
DESERT SOUTHWEST 31-3 41-4 61.25 56.75 63.50 63.00 67.00 63.25 68.35 63.35
51-5 55.00 55.50 57.25 57.50
32-3
63.50 66.00 66.75 67.25 68.25
MIKE DIFFERENCES - POINTS PER POUND
SOUTHEAST
-425 -350 -300 -250 -200 -25 0 0 25 50 50
NORTH DELTA
SOUTH DELTA
-300 -250 -200 -175 -150 -25 0 0 25 50 50
-275 -225 -200 -175 -150 -25 0 0 25 50 50
SOUTH-
NORTH
SOUTH
E. TX
EAST
DELTA
DELTA
-825 -425 -275 -150 0 0 0 -200 -375
-1000 -650 -325 -125 0 25 0 -225 -375
-1100 -750 -325 -125 0 25 0 -225 -375
OK -1100 -1000 -750 -500 -350 0 0 0 -225 -400
STRENGTH DIFFERENCES E. TX Grams WEST OK per tex TEXAS -250 19.0 - 19.9 -250 -250 20.0 - 20.9 -250 -225 21.0 - 21.9 -225 -200 22.0 - 22.9 -200 -175 23.0 - 23.9 -175 -175 24.0 - 24.9 -175 -150 25.0 - 25.9 -150 -100 26.0 - 26.9 -100 0 Base 27.0 - 28.9 0 0 29.0 - 29.9 0 25 30.0 - 30.9 25 25 31.0 - 32.9 25 25 33.0 & above 25
Mike Ranges 24 & Below 25-26 27-29 30-32 33-34 Base 35-36 37-42 Base 43-49 50-52 53 & Above
DESERT SW
SJ VALLEY
-600 -450 -300 -225 -200 -125 0 0 25 50 100
-500 -400 -300 0 0 75 125 250
AVG. -250 -250 -342 -279 -225 -239 -200 -100 0 0 32 54 79
SOUTHEAST -125 -110 -100 -25 0 0 20 30 40 50
NORTH DELTA -90 -80 -70 0 0 0 30 40 50 60
WEST
DESERT
SJ
TEXAS -1100 -1000 -750 -500 -350 0 0 0 -225 -400
SW -1200 -1000 -900 -500 -300 0 25 0 -300 -550
VALLEY
SOUTH DELTA -90 -80 -70 0 0 0 30 40 50 60
UNIFORMITY DIFFERENCES E. TX Unit WEST OK TEXAS -90 77 & below -90 -75 78 -75 -60 79 -60 0 80 0 0 Base 81 0 0 82 0 10 83 0 10 84 10 20 85 20 30 86 & above 30
-1600 -1000 -500 0 25 0 -500
AVG. -1133 -988 -832 -489 -271 0 14 0 -271 -413 DESERT SJ SW VALLEY -100 -60 -90 -50 -80 -40 0 0 0 0 0 50 30 80 40 90 50 100 60 110
AVG. -92 -80 -69 -4 0 7 29 37 47 57
September 21, 2017
10
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color
Leaf
Staple 44
46
48
1
1
138.50
146.50
147.75
2
138.25
146.25
147.50
3
130.50
137.50
137.75
1
138.25
146.25
147.50
2
138.00
146.00
147.25
3
130.25
137.25
137.50
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, 2017.
5 6 2
4
120.25
127.75
128.00
5 6 3
Mike Range
Diff.
26 & Below
-1900
27-29
-1400
30-32
-900
1
128.00
135.00
135.25
2
125.50
132.50
132.75
33-34
-400
3
124.25
131.25
131.50
35 & Above
0
4
115.25
122.25
122.50
5
99.25
105.75
106.00 Strength
6 4
1
109.00
116.00
117.00
2
108.75
115.75
116.25
Range
Diff.
3
108.50
115.50
115.50
35.4 & Below
-1350
4
103.50
110.50
110.50
35.5-36.4
-1100
5
92.25
99.25
99.25
36.5-37.4
-850
37.5 & Above
0
6 5
1 2
88.00
97.25
97.25
3
88.00
96.75
97.25
4
88.00
91.25
91.25
5
87.75
91.00
91.00
6 6
(Grams per Tex)
Extraneous Matter Level
Diff.
Prep
1 2
80.25
82.50
82.50
3
80.25
82.50
82.50
1 2
4
80.25
82.50
82.50
Other
-810 -1095
5
80.00 82.25 82.25 1 -715 2 6 79.50 81.75 81.75 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
September 21, 2017
11
