Weekly Cotton Market Review - Amazon Simple Storage Service (S3)
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Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 9 September 29, 2017 Inside this Issue Market Overview Price Support Spot Quotations ICE Futures A Index Southeastern
Due to conditioning equipment failure, the Corpus Christi, TX Classing Office is unable to grade cotton. While repairs are being made, cotton is being graded at the Memphis, TN and Rayville, LA Classing Offices. Average quotations were 37 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, uniformity 81.0-81.9) in the seven designated markets averaged 67.34 cents per pound for the week ending Thursday, September 28, 2017. The weekly average was down from 67.71 last week, and 68.03 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 67.04 cents Friday, September 22 to a high of 67.86 cents Monday, September 25. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 28 totaled 6,240 bales. This compares to 3,280 bales reported last week and 10,677 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 36,718 bales compared to 31,709 bales the corresponding week a year ago. The ICE December settlement prices ended the week at 68.97 cents, compared to 68.25 cents last week.
Textile Mill Report South Central Southwestern Western Ginnings Pima Quotations
Cotton Market Reports
Subscribe to this report
Subscribe to all Cotton Market reports
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 weak. Trading of CCC-loan equities was inactive. Fieldwork and harvest activities continued uninterrupted across the region as mostly sunny and ideal weather conditions prevailed over the entire Southeast during the period. Daytime high temperatures were in the upper 80s to lower 90s across the lower Southeast, with slightly cooler daytime highs in the lower 80s to lower 90s observed in the Carolinas and Virginia. In Alabama, Georgia, and the Florida panhandle, defoliation was expanding and harvesting was underway in some of the earliestplanted fields. In Georgia, modules had begun to arrive at gin yards and ginning had begun on a very limited scale. In fields where plants remained twisted and tangled from the strong winds of Hurricane Irma, producers may utilize airplane defoliation to avoid boll loss from sprayers rolling through fields and knocking off bolls on plants that have laid down. Defoliation and harvesting was also just getting underway in the Carolinas. In some of the earliest-planted fields, cotton has been harvested and modules were ready for transport to gins. Harvest and ginning activity should rapidly expand across the Southeast in the next two weeks. Despite the negative impact on yields in some fields from Hurricane Irma,
fruit loads are heavy in many areas and producers across the region remain very positive about the 2017 cotton crop. According to the National Agricultural Statistics Service’s Crop Progress report released September 25, cotton bolls opening had reached 78 percent in Georgia, 73 in South Carolina, 66 in North Carolina, 60 in Alabama, and 55 percent opened in Virginia. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 for November through October 2018 delivery. No sales were reported. Most mills have covered their raw cotton needs through first quarter 2018. Yarn demand was moderate-to-good; denim demand remained lackluster. Most mills operated five to seven days. Demand through export channels was moderate. Representatives for mills in India and Indonesia purchased a moderate volume of color 31, leaf 3, and staple 36 and 37 for March shipment. Turkish mill buyers purchased a moderate volume of USDA Green Card Class, color 41, leaf 4, and staple 37 for February/March shipment. Peruvian mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 36 for nearby shipment. No additional sales were reported.
Trading No trading activity was reported.
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported. Continued hot and dry weather prevailed during the week throughout the region. No rainfall was reported in the Memphis territory. Daytime temperatures were in the low 90s and overnight lows were in the 60s. The crop made excellent progress as a result of an extended period of favorable climatic conditions, particularly the above-average temperatures. Defoliation gained momentum, and harvesting was just getting underway. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 25, open bolls had reached 86 percent in Arkansas, 73 in Missouri, and 65 percent in Tennessee. NASS reported that harvesting in Arkansas was 4 percent completed, compared with 1 percent in Tennessee. No harvesting was reported in Missouri due to the lateness of the crop. The Dumas, AR Classing Office had commenced annual operations.
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported. Clear skies and high temperatures persisted during the week. Pop-up thundershowers once again brought less than one-tenth of an inch of rain to localized areas. Daytime temperatures were in the low 90s and overnight lows were in the 60s. Harvesting activities advanced under ideal weather conditions. Defoliation and harvesting expanded in Louisiana and Mississippi. Now that gins have accumulated a backlog of modules on their yards, ginning has gained momentum. Fall tillage and field preparation for next season were on-going. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 25, open bolls had reached 98 percent in Louisiana, compared to 74 percent in Mississippi. NASS reported that 26 percent of the crop had been harvested in Louisiana, compared to just 6 percent in Mississippi. The Rayville, LA Classing Office had begun annual operations.
Trading No trading activity was reported. No trading activity was reported.
North Delta South Delta
3
Photos Courtesy of: Jeff Carnahan
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, Taiwan, and Pakistan. Harvesting and ginning continued in south Texas. Field activity was interrupted mid-week because of moderate rainfall. All gins, except one, were processing bales. Some of the gins in the Rio Grande Valley completed their season. All ginning activity was expected to be finished by mid-October. Harvesting had reached the half-way point in the northern Blackland Prairies, according to local reports. Defoliants and boll openers continued to be applied. Ginning continued uninterrupted. Round modules accumulated on gin yards. The logistics community continued to experience the impact of Hurricane Harvey. Ginned bales had also begun to accumulate on gin yards because of a lack of available trucks to transport bales to the warehouses. Dryland harvesting had begun in southwestern Oklahoma, but was interrupted by rainy conditions. Daytime temperatures were in the mid-60s, and nighttime temperatures were in the mid-50s. Eastern Kansas received intermittent rainfall that brought up to two and one-half inches of moisture that slowed
fieldwork. Some defoliations and harvest aids were applied to fields on the western side of the state. According to local reports, there was a lull in field activity because farmers were waiting for the plants to finish maturing and heat units to build. 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, Taiwan, and Pakistan. Rainy, cooler conditions prevailed with daytime temperatures in the 60s and 70s during the reporting period. Some areas received up to 4 inches of moisture over a four-day period. Field activities were halted, due to soggy soils. Many fields had opened bolls before the rainy weather began on September 23. A period of sunny, warm weather is needed to help mature the crop. Although some producers have applied defoliants and boll openers to prepare stands for harvest, many will wait for a freeze, according to local experts. Some fields were harvested ahead of the storms, mostly in the Southern Rolling Plains. Ginning was expected to begin mid-to-late October in the Southern Plains.
Trading East Texas A light volume of mostly color 11, leaf 2 and 3, staple 35, mike averaging 43.3, strength averaging 29.6, and uniformity 79-81 sold for around 69.50 cents per pound, FOB warehouse (compression charges not paid). A moderate volume of color 41 and better, leaf 1-3, staple mostly 38, mike averaging 42.9, strength 27-32, and uniformity 78-83 sold for around 69.00 cents, same terms as above. A light volume of color mostly 51 and better, leaf 2 and 3, staple 35 and longer, mike averaging 45.9, strength averaging 27.7, and uniformity 77-81 sold for around 64.25 cents, same terms as above.
West Texas No trading activity was reported.
5
Photos Courtesy of: Jane Byers-Angle
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 weak. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the high 80s to low 90s in Arizona. Ginning continued in Yuma. Harvesting was active in central Arizona. Initial defoliation began in Safford. Untimely and severe thunderstorms rolled through New Mexico and El Paso, Texas. Up to one and three-quarters of an inch of rainfall was recorded in the period. Strong winds and some hail accompanied the storms. Fieldwork was inactive. Gin repairs continued. Producers attended annual meetings. 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 mill inquiries were light and mostly for price discovery.
Daytime temperatures were the 80s and 90s. Conditions were clear. Fieldwork was active as more producers began defoliating. Initial harvesting began in Merced County. 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. According to the Foreign Agricultural Service’s Export Sales report, approximately 260,500 bales of 2017-crop AP were committed for the week ending September 21, 2017. Temperatures were mostly in the 80s and 90s for much of the Far West. Fieldwork was active in Arizona and California as some producers began defoliating in the period. No ginning was reported. Severe weather in portions of New Mexico and El Paso Texas brought heavy rainfall, strong winds, and hail. The weather halted all field activities. Producers attended regional annual meetings.
Trading No trading activity was reported. No trading activity was reported. No trading activity was reported.
Desert Southwest San Joaquin Valley American Pima
7
Ginnings
For complete Ginnings report click here. Spot Transactions
Source: USDA, AMS, Cotton and Tobacco Program
8
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2016-2017 and 2017-2018 August
Sept
Sept
Sept
Sept
Sept 29
25-31
1-7
8-14
15-21
22-28
Oct 5
Adjusted world price 1/
59.65
61.85
64.13
63.27
60.91
60.55
Course count adjustment
0.00
0.00
0.00
0.00
0.00
0.00
Loan Deficiency Payment (LDP)
0.00
0.00
0.00
0.00
0.00
0.00
Fine count adjustment 2016
0.48
0.65
0.63
0.73
0.69
0.47
Fine count adjustment 2017
0.63
0.80
0.78
0.88
0.84
0.62
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. Marketing Years Description
2016-2017
2017-2018
Through September 22, 2016
Through September 21, 2017
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
3,656,000
-
5,960,500
Exports
153,500
1,342,600
131,900
1,272,900
-
4,998,600
New sales
104,900
-
200,000
-
Buy-backs and cancellations
13,300
-
5,800
-
91,600
-
194,200
-
11,600
428,000
8,500
725,400
Total export commitments
Net sales Sales next marketing year
7,233,400
Net sales of 194,200 RB for 2017/2018 were down 12 percent from the previous week, but up 23 percent from the prior 4-week average. Increases were reported for Turkey (51,600 RB), Indonesia (23,800 RB, including 700 RB switched from Japan and 400 RB switched from China), China (23,500 RB), Vietnam (18,300 RB, including 200 RB switched from China), India (14,800 RB), and Thailand (13,400 RB, including 400 RB switched from Japan). Reductions were reported for Japan (200 RB) and Honduras (200 RB). For 2018/2019, net sales of 8,500 RB were reported for India (5,100 RB), Pakistan (2,200 RB), and Costa Rica (1,200 RB). Exports of 131,900 RB were down 25 percent from the previous week and 13 percent from the prior 4-week average. Exports were reported primarily to Vietnam (32,100 RB), Bangladesh (18,600 RB), Mexico (16,200 RB), Indonesia (12,800 RB), and China (12,000 RB). Net sales of Pima totaling 15,600 RB for 2017/2018 were down 73 percent from the previous week and 16 percent from the prior 4-week average. Increases were reported primarily for India (8,900 RB), Indonesia (2,600 RB), China (1,700 RB), and Thailand (1,400 RB). Exports of 6,000 RB were up 6 percent from the previous week and 63 percent from the prior 4-week average. The primary destinations were China (2,600 RB), India (900 RB), Pakistan (900 RB)and Egypt (800 RB). Optional Origin Sales: For 2017/2018, the current optional origin outstanding balance of 16,500 RB is for Indonesia. Exports for Own Account: New exports for own account totaling 8,800 RB were reported for Indonesia (6,800 RB), China (1,700 RB), and Thailand (300 RB). Exports to Indonesia (4,000 RB), China (1,700 RB), and Thailand (300 RB) were applied to new or outstanding sales. Decreases of 1,000 RB were reported for Indonesia (700 RB) and Vietnam (300 RB). The current outstanding balance of 74,000 RB is for Indonesia (50,500 RB), Taiwan (13,100 RB), India (3,800 RB), Bangladesh (2,800 RB), South Korea (2,100 RB), Vietnam (1,200 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
September 28, 2017
USDA ANNOUNCES SPECIAL IMPORT QUOTA #23 FOR UPLAND COTTON September 28, 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 October 05, 2017, allowing importation of 12,798,043 kilograms (58,780 bales) of upland cotton. Quota number 23 will be established as of October 05, 2017, and will apply to upland cotton purchased not later than January 02, 2018, and entered into the U.S. not later than April 02, 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 9-28-2017
Awaiting Review
Non-Rain Grown Cotton
357
0
0
Galveston, TX
1,198
0
0
Greenville, SC
57
0
0
Houston, TX
375
0
0
Memphis, TN
1,033
0
0
Total
3,020
0
0
Delivery Points Dallas/FT. Worth, TX
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 69.22 70.47 70.97 72.47
SOUTHEAST 41-4 51-5 67.72 64.22 69.72 65.22 70.22 65.72 71.97 65.97 21-2 65.25 65.75 67.50 69.00 70.50 71.25 72.00 72.00
42-4 65.47 66.97 66.97 67.22
31-3 67.97 69.72 70.22 72.47
EAST TEXAS-OKLAHOMA 31-3 41-4 64.50 63.00 65.25 64.50 67.25 65.50 69.00 68.25 69.75 68.25 70.00 68.75 70.25 69.00 70.25 70.25
NORTH DELTA 41-4 51-5 66.22 61.72 68.97 63.22 69.47 64.22 70.72 64.47 42-4 62.00 63.00 63.75 67.25 67.25 67.50 67.50 67.50
21-2 65.00 66.00 68.00 68.50 70.50 70.75 71.50 71.50
42-4 64.47 65.22 65.97 65.97
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 66.22 61.72 68.97 63.22 69.47 64.22 70.72 64.47
31-3 67.97 69.72 70.22 72.47
Staple 26-31 32 33 34 35 36 37 38
21-2
68.87 75.12 78.62 80.12 82.37
42-4 64.47 65.22 65.97 66.22
21-2 62.72 64.97 69.22 69.82
SAN JOAQUIN VALLEY 31-3 41-4
67.37 73.62 77.12 78.37 80.12
64.72 66.72 67.52 67.62 67.62
DESERT SOUTHWEST 31-3 41-4 61.97 57.47 64.22 63.72 67.72 63.97 69.07 64.07
51-5 55.72 56.22 57.97 58.22
32-3
64.22 66.72 67.47 67.97 68.97
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 SW -100 -90 -80 0 0 0 30 40 50 60
SJ VALLEY -60 -50 -40 0 0 50 80 90 100 110
AVG. -92 -80 -69 -4 0 7 29 37 47 57
September 28, 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 1
Leaf
Staple 44
46
48
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
120.25
127.75
128.00
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
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
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
Strength
6 4
6 5
6
(Grams per Tex)
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
Extraneous Matter
6
Level
1
Prep
2
80.25
82.50
82.50
3
80.25
82.50
82.50
1 2
4
80.25
82.50
82.50
Other
Diff. -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 28, 2017
11
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 9 September 29, 2017 Inside this Issue Market Overview Price Support Spot Quotations ICE Futures A Index Southeastern
Due to conditioning equipment failure, the Corpus Christi, TX Classing Office is unable to grade cotton. While repairs are being made, cotton is being graded at the Memphis, TN and Rayville, LA Classing Offices. Average quotations were 37 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, uniformity 81.0-81.9) in the seven designated markets averaged 67.34 cents per pound for the week ending Thursday, September 28, 2017. The weekly average was down from 67.71 last week, and 68.03 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 67.04 cents Friday, September 22 to a high of 67.86 cents Monday, September 25. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 28 totaled 6,240 bales. This compares to 3,280 bales reported last week and 10,677 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 36,718 bales compared to 31,709 bales the corresponding week a year ago. The ICE December settlement prices ended the week at 68.97 cents, compared to 68.25 cents last week.
Textile Mill Report South Central Southwestern Western Ginnings Pima Quotations
Cotton Market Reports
Subscribe to this report
Subscribe to all Cotton Market reports
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 weak. Trading of CCC-loan equities was inactive. Fieldwork and harvest activities continued uninterrupted across the region as mostly sunny and ideal weather conditions prevailed over the entire Southeast during the period. Daytime high temperatures were in the upper 80s to lower 90s across the lower Southeast, with slightly cooler daytime highs in the lower 80s to lower 90s observed in the Carolinas and Virginia. In Alabama, Georgia, and the Florida panhandle, defoliation was expanding and harvesting was underway in some of the earliestplanted fields. In Georgia, modules had begun to arrive at gin yards and ginning had begun on a very limited scale. In fields where plants remained twisted and tangled from the strong winds of Hurricane Irma, producers may utilize airplane defoliation to avoid boll loss from sprayers rolling through fields and knocking off bolls on plants that have laid down. Defoliation and harvesting was also just getting underway in the Carolinas. In some of the earliest-planted fields, cotton has been harvested and modules were ready for transport to gins. Harvest and ginning activity should rapidly expand across the Southeast in the next two weeks. Despite the negative impact on yields in some fields from Hurricane Irma,
fruit loads are heavy in many areas and producers across the region remain very positive about the 2017 cotton crop. According to the National Agricultural Statistics Service’s Crop Progress report released September 25, cotton bolls opening had reached 78 percent in Georgia, 73 in South Carolina, 66 in North Carolina, 60 in Alabama, and 55 percent opened in Virginia. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 for November through October 2018 delivery. No sales were reported. Most mills have covered their raw cotton needs through first quarter 2018. Yarn demand was moderate-to-good; denim demand remained lackluster. Most mills operated five to seven days. Demand through export channels was moderate. Representatives for mills in India and Indonesia purchased a moderate volume of color 31, leaf 3, and staple 36 and 37 for March shipment. Turkish mill buyers purchased a moderate volume of USDA Green Card Class, color 41, leaf 4, and staple 37 for February/March shipment. Peruvian mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 36 for nearby shipment. No additional sales were reported.
Trading No trading activity was reported.
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported. Continued hot and dry weather prevailed during the week throughout the region. No rainfall was reported in the Memphis territory. Daytime temperatures were in the low 90s and overnight lows were in the 60s. The crop made excellent progress as a result of an extended period of favorable climatic conditions, particularly the above-average temperatures. Defoliation gained momentum, and harvesting was just getting underway. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 25, open bolls had reached 86 percent in Arkansas, 73 in Missouri, and 65 percent in Tennessee. NASS reported that harvesting in Arkansas was 4 percent completed, compared with 1 percent in Tennessee. No harvesting was reported in Missouri due to the lateness of the crop. The Dumas, AR Classing Office had commenced annual operations.
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported. Clear skies and high temperatures persisted during the week. Pop-up thundershowers once again brought less than one-tenth of an inch of rain to localized areas. Daytime temperatures were in the low 90s and overnight lows were in the 60s. Harvesting activities advanced under ideal weather conditions. Defoliation and harvesting expanded in Louisiana and Mississippi. Now that gins have accumulated a backlog of modules on their yards, ginning has gained momentum. Fall tillage and field preparation for next season were on-going. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 25, open bolls had reached 98 percent in Louisiana, compared to 74 percent in Mississippi. NASS reported that 26 percent of the crop had been harvested in Louisiana, compared to just 6 percent in Mississippi. The Rayville, LA Classing Office had begun annual operations.
Trading No trading activity was reported. No trading activity was reported.
North Delta South Delta
3
Photos Courtesy of: Jeff Carnahan
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, Taiwan, and Pakistan. Harvesting and ginning continued in south Texas. Field activity was interrupted mid-week because of moderate rainfall. All gins, except one, were processing bales. Some of the gins in the Rio Grande Valley completed their season. All ginning activity was expected to be finished by mid-October. Harvesting had reached the half-way point in the northern Blackland Prairies, according to local reports. Defoliants and boll openers continued to be applied. Ginning continued uninterrupted. Round modules accumulated on gin yards. The logistics community continued to experience the impact of Hurricane Harvey. Ginned bales had also begun to accumulate on gin yards because of a lack of available trucks to transport bales to the warehouses. Dryland harvesting had begun in southwestern Oklahoma, but was interrupted by rainy conditions. Daytime temperatures were in the mid-60s, and nighttime temperatures were in the mid-50s. Eastern Kansas received intermittent rainfall that brought up to two and one-half inches of moisture that slowed
fieldwork. Some defoliations and harvest aids were applied to fields on the western side of the state. According to local reports, there was a lull in field activity because farmers were waiting for the plants to finish maturing and heat units to build. 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, Taiwan, and Pakistan. Rainy, cooler conditions prevailed with daytime temperatures in the 60s and 70s during the reporting period. Some areas received up to 4 inches of moisture over a four-day period. Field activities were halted, due to soggy soils. Many fields had opened bolls before the rainy weather began on September 23. A period of sunny, warm weather is needed to help mature the crop. Although some producers have applied defoliants and boll openers to prepare stands for harvest, many will wait for a freeze, according to local experts. Some fields were harvested ahead of the storms, mostly in the Southern Rolling Plains. Ginning was expected to begin mid-to-late October in the Southern Plains.
Trading East Texas A light volume of mostly color 11, leaf 2 and 3, staple 35, mike averaging 43.3, strength averaging 29.6, and uniformity 79-81 sold for around 69.50 cents per pound, FOB warehouse (compression charges not paid). A moderate volume of color 41 and better, leaf 1-3, staple mostly 38, mike averaging 42.9, strength 27-32, and uniformity 78-83 sold for around 69.00 cents, same terms as above. A light volume of color mostly 51 and better, leaf 2 and 3, staple 35 and longer, mike averaging 45.9, strength averaging 27.7, and uniformity 77-81 sold for around 64.25 cents, same terms as above.
West Texas No trading activity was reported.
5
Photos Courtesy of: Jane Byers-Angle
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 weak. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the high 80s to low 90s in Arizona. Ginning continued in Yuma. Harvesting was active in central Arizona. Initial defoliation began in Safford. Untimely and severe thunderstorms rolled through New Mexico and El Paso, Texas. Up to one and three-quarters of an inch of rainfall was recorded in the period. Strong winds and some hail accompanied the storms. Fieldwork was inactive. Gin repairs continued. Producers attended annual meetings. 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 mill inquiries were light and mostly for price discovery.
Daytime temperatures were the 80s and 90s. Conditions were clear. Fieldwork was active as more producers began defoliating. Initial harvesting began in Merced County. 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. According to the Foreign Agricultural Service’s Export Sales report, approximately 260,500 bales of 2017-crop AP were committed for the week ending September 21, 2017. Temperatures were mostly in the 80s and 90s for much of the Far West. Fieldwork was active in Arizona and California as some producers began defoliating in the period. No ginning was reported. Severe weather in portions of New Mexico and El Paso Texas brought heavy rainfall, strong winds, and hail. The weather halted all field activities. Producers attended regional annual meetings.
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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Ginnings
For complete Ginnings report click here. Spot Transactions
Source: USDA, AMS, Cotton and Tobacco Program
8
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2016-2017 and 2017-2018 August
Sept
Sept
Sept
Sept
Sept 29
25-31
1-7
8-14
15-21
22-28
Oct 5
Adjusted world price 1/
59.65
61.85
64.13
63.27
60.91
60.55
Course count adjustment
0.00
0.00
0.00
0.00
0.00
0.00
Loan Deficiency Payment (LDP)
0.00
0.00
0.00
0.00
0.00
0.00
Fine count adjustment 2016
0.48
0.65
0.63
0.73
0.69
0.47
Fine count adjustment 2017
0.63
0.80
0.78
0.88
0.84
0.62
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. Marketing Years Description
2016-2017
2017-2018
Through September 22, 2016
Through September 21, 2017
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
3,656,000
-
5,960,500
Exports
153,500
1,342,600
131,900
1,272,900
-
4,998,600
New sales
104,900
-
200,000
-
Buy-backs and cancellations
13,300
-
5,800
-
91,600
-
194,200
-
11,600
428,000
8,500
725,400
Total export commitments
Net sales Sales next marketing year
7,233,400
Net sales of 194,200 RB for 2017/2018 were down 12 percent from the previous week, but up 23 percent from the prior 4-week average. Increases were reported for Turkey (51,600 RB), Indonesia (23,800 RB, including 700 RB switched from Japan and 400 RB switched from China), China (23,500 RB), Vietnam (18,300 RB, including 200 RB switched from China), India (14,800 RB), and Thailand (13,400 RB, including 400 RB switched from Japan). Reductions were reported for Japan (200 RB) and Honduras (200 RB). For 2018/2019, net sales of 8,500 RB were reported for India (5,100 RB), Pakistan (2,200 RB), and Costa Rica (1,200 RB). Exports of 131,900 RB were down 25 percent from the previous week and 13 percent from the prior 4-week average. Exports were reported primarily to Vietnam (32,100 RB), Bangladesh (18,600 RB), Mexico (16,200 RB), Indonesia (12,800 RB), and China (12,000 RB). Net sales of Pima totaling 15,600 RB for 2017/2018 were down 73 percent from the previous week and 16 percent from the prior 4-week average. Increases were reported primarily for India (8,900 RB), Indonesia (2,600 RB), China (1,700 RB), and Thailand (1,400 RB). Exports of 6,000 RB were up 6 percent from the previous week and 63 percent from the prior 4-week average. The primary destinations were China (2,600 RB), India (900 RB), Pakistan (900 RB)and Egypt (800 RB). Optional Origin Sales: For 2017/2018, the current optional origin outstanding balance of 16,500 RB is for Indonesia. Exports for Own Account: New exports for own account totaling 8,800 RB were reported for Indonesia (6,800 RB), China (1,700 RB), and Thailand (300 RB). Exports to Indonesia (4,000 RB), China (1,700 RB), and Thailand (300 RB) were applied to new or outstanding sales. Decreases of 1,000 RB were reported for Indonesia (700 RB) and Vietnam (300 RB). The current outstanding balance of 74,000 RB is for Indonesia (50,500 RB), Taiwan (13,100 RB), India (3,800 RB), Bangladesh (2,800 RB), South Korea (2,100 RB), Vietnam (1,200 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
September 28, 2017
USDA ANNOUNCES SPECIAL IMPORT QUOTA #23 FOR UPLAND COTTON September 28, 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 October 05, 2017, allowing importation of 12,798,043 kilograms (58,780 bales) of upland cotton. Quota number 23 will be established as of October 05, 2017, and will apply to upland cotton purchased not later than January 02, 2018, and entered into the U.S. not later than April 02, 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.
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Number of Bales in Certificated Stocks Stocks as of 9-28-2017
Awaiting Review
Non-Rain Grown Cotton
357
0
0
Galveston, TX
1,198
0
0
Greenville, SC
57
0
0
Houston, TX
375
0
0
Memphis, TN
1,033
0
0
Total
3,020
0
0
Delivery Points Dallas/FT. Worth, TX
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 69.22 70.47 70.97 72.47
SOUTHEAST 41-4 51-5 67.72 64.22 69.72 65.22 70.22 65.72 71.97 65.97 21-2 65.25 65.75 67.50 69.00 70.50 71.25 72.00 72.00
42-4 65.47 66.97 66.97 67.22
31-3 67.97 69.72 70.22 72.47
EAST TEXAS-OKLAHOMA 31-3 41-4 64.50 63.00 65.25 64.50 67.25 65.50 69.00 68.25 69.75 68.25 70.00 68.75 70.25 69.00 70.25 70.25
NORTH DELTA 41-4 51-5 66.22 61.72 68.97 63.22 69.47 64.22 70.72 64.47 42-4 62.00 63.00 63.75 67.25 67.25 67.50 67.50 67.50
21-2 65.00 66.00 68.00 68.50 70.50 70.75 71.50 71.50
42-4 64.47 65.22 65.97 65.97
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 66.22 61.72 68.97 63.22 69.47 64.22 70.72 64.47
31-3 67.97 69.72 70.22 72.47
Staple 26-31 32 33 34 35 36 37 38
21-2
68.87 75.12 78.62 80.12 82.37
42-4 64.47 65.22 65.97 66.22
21-2 62.72 64.97 69.22 69.82
SAN JOAQUIN VALLEY 31-3 41-4
67.37 73.62 77.12 78.37 80.12
64.72 66.72 67.52 67.62 67.62
DESERT SOUTHWEST 31-3 41-4 61.97 57.47 64.22 63.72 67.72 63.97 69.07 64.07
51-5 55.72 56.22 57.97 58.22
32-3
64.22 66.72 67.47 67.97 68.97
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 SW -100 -90 -80 0 0 0 30 40 50 60
SJ VALLEY -60 -50 -40 0 0 50 80 90 100 110
AVG. -92 -80 -69 -4 0 7 29 37 47 57
September 28, 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 1
Leaf
Staple 44
46
48
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
120.25
127.75
128.00
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
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
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
Strength
6 4
6 5
6
(Grams per Tex)
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
Extraneous Matter
6
Level
1
Prep
2
80.25
82.50
82.50
3
80.25
82.50
82.50
1 2
4
80.25
82.50
82.50
Other
Diff. -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 28, 2017
11
