Weekly Cotton Market Review
Mp_cn812
Vol. 98
No. 48
July 7, 2017 Inside this Issue Market Overview Price Support Southeastern South Central Southwestern Western Textile Mill Report Price Information
USDA, AMS, Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, Tennessee 38133
Weekly Cotton Market Review Average quotations were 13 points higher 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 66.98 cents per pound for the week ending Thursday, July 6, 2017. The weekly average was up from 66.85 last week and from 63.56 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 67.94 cents Friday, June 30 to a low of 66.42 cents Monday, July 3. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 6 totaled 375 bales. This compares to no bales reported last week and 1,780 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,563,825 bales compared to 1,469,153 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 69.47 cents, compared to 69.05 cents last week. Prices are in effect from July 7-13, 2017
Spot Quotations Forward Contracting ICE Futures
Adjusted World Price (AWP) Loan Deficiency Payment (LDP) Coarse Count Adjustment (CCA)
65.33 0.00 0.00
ELS Competitiveness Payment Fine Count Adjustment 2016 Crop Fine Count Adjustment 2017 Crop
0.00 0.00 0.00
Source: Farm Service Agency, FSA, USDA
A Index Pima Quotations
USDA ANNOUNCES SPECIAL IMPORT QUOTA 9 & 10 FOR UPLAND COTTON July 6, 2017
Contact Us [email protected]
The Department of Agriculture's Commodity Credit Corporation announced that the news release issued on June 22 and June 29, 2017, for the Upland Cotton Special Import Quota (#9 and #10) failed to recognize that the U.S. Far East price did not exceed the prevailing world market price during the consecutive 4-week period ending on the date of the announcement. We regret the error. When this condition (for any consecutive 4-week period, the U.S. Far East price exceeds the prevailing world market price) is met again in the future, a Special Import Quota announcement will be issued.
Regional Summaries Southeastern Market Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were steady. Trading of CCC-loan equities was inactive. Widespread thunderstorms brought moderate rainfall to areas from north Alabama to South Carolina early in the period. Locally heavy precipitation measured several inches in some areas. Sunny to partly cloudy conditions prevailed much of the period and daytime high temperatures warmed into the 90s mid-week. Plants thrived under the hot, humid conditions and squaring was well underway. Boll-setting advanced in Alabama and Georgia. Late-week thunderstorms brought light precipitation to areas across the lower southeast. Fieldwork was limited in areas of south Alabama where soils remained waterlogged from excessive moisture received in recent weeks. Weed control was becoming problematic in fields too soggy to support equipment. Mostly sunny to partly cloudy conditions prevailed in North Carolina and Virginia during the week. The crop thrived under the drier and warmer conditions, with daytime high temperatures in the low-to-mid-90s and boll-setting was just getting underway. Producers scouted fields and applied sprays to combat plant bugs. According to the National Agricultural Statistics Service’s Crop Progress report released July 5, squaring reached 57 percent in Georgia and Virginia, 55 in Alabama, 53 in North Carolina, and 45 percent squared in South Carolina. South Central Markets North Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cloudy to partly cloudy conditions persisted during the period. Intermittent thunderstorms during the week brought up to 2 inches of precipitation to the Memphis territory. The moisture was generally beneficial to the crop, except in fields saturated from previous storms. Daytime temperatures were in the 80s and 90s. Overnight lows were in the 60s to 70s. The crop made excellent progress under good
conditions. Producers were busy scouting fields for a variety of insect pests, including bollworms; treatments were applied as necessary to control outbreaks of plant bugs. According to the National Agricultural Statistics Service Crop Progress report released July 5, boll setting reached 27 percent in Arkansas, 3 percent in Missouri, and 9 percent in Tennessee. NASS rated the crop condition at good to excellent. South Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Scattered showers throughout the period brought around 3 inches of moisture to some areas, with lesser amounts reported generally. Daytime temperatures were in the 80s to 90s. Overnight lows were in the 60s to 70s. The crop made good progress in most areas. Developing cotton plants would benefit from a period of hot, clear weather to allow for the accumulation of heat units, especially in late-planted fields. Producers were battling weeds in some of the wetter fields. Insect populations were carefully monitored, but most local experts reported that pressure was light. Control measures were taken as necessary to treat hotspots. According to the National Agricultural Statistics Service Crop Progress report released July 5, boll setting reached 31 percent in Louisiana and 10 percent in Mississippi. Southwestern Markets East Texas-Oklahoma 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. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light and for new-crop cotton. Interest was best from China, Korea, and Mexico. Hot, dry conditions made for perfect defoliation weather in the Rio Grande Valley. Initial harvesting began of dryland fields. Defoliation of irrigated fields will begin in about a week. Modules accumulated on gin yards and fields. Gins were ready for cotton. Ginning was expected to begin next 2
Regional Summaries week after electrical meters were read. Sources reported a very good end to the growing season and aboveaverage yields were expected. The Corpus Christi classing office was gearing up for a record classing season. Mostly dry conditions in east Texas and the Upper Coast allowed the crop to advance. Some sources reported the crop slightly ahead of schedule in the Upper Coast. Overall, the crop made good progress. In Kansas, the crop made good progress. Herbicide drift damage was reported in some fields, which traveled from spraying weeds in fallow fields. Sources reported damage was light. Local experts indicated the Oklahoma crop made good progress after a rough start. The irrigated crop made good progress. The dryland crop development was described as a “mixed bag”. Sources suspect that acreage in Kansas and Oklahoma could be higher than the acreage reported by the National Agricultural Statistics Service. The increase in acreage was attributed to growers, who had not planted cotton in several years and lower competitive crop prices. A new cotton gin is being built in Carnegie, OK; it is expected to be operational for the 2017 season. West Texas 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. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate for new-crop cotton for November/December 2017 shipment. Interest was best from China, Korea, and Mexico. Scattered shower activity continued through the period. Precipitation totals ranged from three-quarters of an inch to over 4 inches in areas around Lubbock north and into the Rolling Plains. Areas in the Lamesa territory received around one-tenth to one-quarter of an inch of moisture. The San Angelo area received around one and one-half inches. There was some hail and wind damage to the crop. Saturated fields prevented producers from assessing how much of the crop is damaged. Soil moisture profiles were greatly improved by two weeks of showers and was especially beneficial for dryland acreage. Irrigated acreage was in excellent condition and progressing normally. The dryland crop was in various stages of development. Some sources reported that some producers completed planting this week around Lubbock. Local representatives were in general agreement with the National Agricultural Statistics Service Acreage report released June 30 for Texas acreage planted; although some dryland producers replanted after insurance adjustments were made. Some representatives estimated that uninsured planted acreage could add an additional 100,000 to 150,000 acres to west Texas. Western Markets Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Excessive heat warnings were issued for central and western Arizona as high temperatures reached 113 degrees. Nighttime lows were in the high 80s, which did not give cotton plants a break from the heat. Producers irrigated the crop to minimize heat stress. Assessments from the previous hot spell were on-going. Overall, the crop made good progress. The Arizona Cotton Research and Protection Council has mapped about 166,631 acres of Upland cotton for the state. This mirrors closely to the 165,000 acres planted reported by the National Agricultural Statistics Service on June 30. The crop made good progress in New Mexico and El Paso, Texas. Some fields were blooming in El Paso, Texas. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Hot, dry conditions advanced the crop. Blooming progressed steadily in the most mature fields. Chemical treatments were made for lygus. The crop made good progress. Sources reported flooding concerns diminished as the mountain snowpack rapidly dwindled.
3
Regional Summaries 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 good for 2016-crop cotton and light for new-crop. Interest was best from China and Thailand. Hot, dry conditions continued in the region. Excessive heat warnings were issued for central and western Arizona as temperatures reached over the 110s mid-week. The Arizona Cotton Research and Protection Council has mapped about 13,723 acres of AP cotton for the state. This compares to 15,000 acres reported by the National Agricultural Statistics Service on June 30. The crop made good progress in Arizona. Sources reported that damage from the previous hot spell was underway in central Arizona. There was concern about sterile flowers. The San Joaquin Valley crop made excellent progress. Local experts reported that last week’s heat was a positive for the crop. Lygus treatments continued in some fields. The crop made good progress in New Mexico and El Paso, Texas. Textile Mill Domestic mill buyers inquired for a moderate volume of 2017-crop cotton, color 51 and better, leaf 5 and better, and staple mostly 34 and longer for fourth quarter 2017 and first quarter 2018 delivery. No sales were reported. Additional inquiries were light; most mills have covered their nearby raw cotton needs. Finished product demand was lackluster. Most mills were down a few days to up to a week for the Independence Day holiday. Demand through export channels was moderate, but had improved due to lower ICE futures prices. Agents for mills in Vietnam inquired for a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 36 for November/December shipment and January through March 2018 shipment.
4
Regional Price Information
Southeastern Markets
No trading activity was reported.
South Central Markets
North Delta A light volume of color 31 and better, leaf mostly 4 and better, staple 35 and longer, mike averaging 48.1, strength averaging 30.8, and uniformity averaging 81.2 traded at around 68.00 cents per pound, FOB car/truck (Rule 5, compression charges paid). A light volume of color mostly 42 and better, leaf 5 and better, staple 34 and longer, mike averaging 48.6, strength averaging 31.1, and uniformity averaging 82.4 traded for around 68.50 cents, same terms as above. South Delta A light volume of color 31 and better, leaf mostly 4 and better, staple 35 and longer, mike averaging 48.1, strength averaging 30.8, and uniformity averaging 81.2 traded at around 68.00 cents per pound, FOB car/truck (Rule 5, compression charges paid). Southwestern Markets East Texas
No trading activity was reported.
No trading activity was reported.
West Texas
Western Markets
Desert Southwest A light volume of New Mexico cotton, color 21 and 31, leaf mostly 2, staple 35 and longer, mike averaging 48.0, strength averaging 29.7, and uniformity averaging 81.4 traded for around 66.75 cents per pound, FOB car/truck (compression charges not paid). San Joaquin Valley
No trading activity was reported.
No trading activity was reported.
American Pima
5
Forward Contracting Forward contracting of 2017-crop cotton. Upland cotton gr ower s in the United States had booked about 8 percent of their expected acreage by the end of June this season. This compares with 2 percent booked through the same period last year. Contracting has been most active in the Southeastern states, where about 13 percent of the crop was under contract by the end of June and compares with 3 percent a year earlier. South Central states' growers had forward contracted about 10 percent, compared with 7 percent in 2016. Southwestern states’ growers had booked 6 percent by the end of June, compared to less than 1 percent of the crop last year. Growers in the Western states had 4 percent booked, compared with 1 percent at the end of June 2016. These estimates were based on the National Agricultural Statistics Board's June Planted Acreage report and informal surveys made by the USDA, Agricultural Marketing Service, Cotton and Tobacco Program. Forward contracting of Upland cotton by growers, as of July 1, crops of 2008-2017 and planted acreage, 2017 crop 1/
Cotton Crops 2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Planted Acreage 2/
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
1,000 acres
Alabama Florida Georgia North Carolina South Carolina Virginia
10 14 12 10 11 13
2 11 1 2
9 9 24 19 18 26
40 24 22 46 27 32
23 7 12 14 4 10
33 14 40 20 21 30
3 * 11 16 25 17
6 7 2 6 4 9
3 5 3 3 2 6
6 4 17 7 7 18
450 90 1,350 360 240 75
Southeastern States
12
6
19
31
13
32
11
4
3
13
2,565
Arkansas Louisiana Mississippi Missouri Tennessee
5 67 6 19 1
1 11 * -
* 28 1 -
64 52 53 84 73
33 47 16 31 37
15 14 11 26 9
9 10 7 9 9
4 2 1 * 3
8 31 3 1 3
11 35 7 4 7
440 200 550 300 320
South Central States
16
2
4
64
30
15
9
2
7
10
1,810
Oklahoma 3/ Texas
8
1
20
15
4
2
1 4
1 1
*
1 7
526 6,600
Southwestern States
8
1
19
14
4
2
4
1
*
6
7,126
Arizona California New Mexico
5 -
-
-
1 6 -
4 6 -
3 3 -
* -
2 -
2 -
7 0 0
165 81 56
Western States
3
-
-
3
4
3
*
1
1
4
302
United States
10
2
16
26
10
11
6
1
2
8
11,803
States
1/ Contracting estimates do not include cotton consigned to marketing organizations but do include cotton contracted with marketing organizations. 2/ June 2017 Planted Acreage, Agricultural Statistics Board, NASS, USDA. 3/ Includes Kansas. * Less than .05 percent.
6
Number of Bales in Certificated Stocks Stocks as of 7-6-2017
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
33,612
0
0
Galveston, TX
16,500
0
0
Greenville, SC
57
0
0
Houston, TX
165
0
0
Memphis, TN
58,833
6,603
0
Total
109,167
6,603
0
Delivery Points
Source: USDA, AMS and ICE U. S. Futures
Average Price for 31-3-35
Average Price for 41-4-34 Market
Fri
Mon
Tue
Wed
Thu
30-Jun
3-Jul
4-Jul
5-Jul
6-Jul
Market
Fri
Mon
Tue
Wed
Thu
30-Jun
3-Jul
4-Jul
5-Jul
6-Jul
SE
69.61
68.09
H
68.26
68.72
SE
70.86
69.34
H
69.51
69.97
ND
68.86
67.34
O
67.51
67.97
ND
70.11
68.59
O
68.76
69.22
SD
68.86
67.34
L
67.51
67.97
SD
70.11
68.59
L
68.76
69.22
ETX
68.75
67.25
I
67.25
67.75
ETX
70.25
68.75
I
68.75
69.25
WTX
68.75
67.25
D
67.25
67.75
WTX
70.25
68.75
D
68.75
69.25
DSW
64.86
63.34
A
63.51
63.97
DSW
68.86
67.34
A
67.51
67.97
SJV
65.86
64.34
Y
64.51
64.97
SJV
74.76
73.24
Y
7-Mkt Avg
67.94
66.42
66.54
67.01
7-Mkt Avg
70.74
69.23
Source: USDA, AMS, Cotton and Tobacco Program
73.41
73.87
69.35
69.82
Source: USDA, AMS, Cotton and Tobacco Program
Spot Transactions Market
Fri
Mon
Tue
Wed
Thu
30-Jun
3-Jul
4-Jul
5-Jul
6-Jul
Upland SE
0
0
H
0
0
ND
0
0
SD
0
0
O
32
108
L
183
0
ETX
0
0
I
0
0
WTX
0
0
D
0
0
DSW
0
0
A
52
0
SJV
0
0
Y
0
0
Total
0
0
267
108
Pima
0
0
0
0
0
Source: USDA, AMS, Cotton and Tobacco Program
7
31-3 68.22 69.47 69.97 71.47
SOUTHEAST 41-4 51-5 66.72 63.22 68.72 64.22 69.22 64.72 70.97 64.97
21-2 64.75 65.25 67.00 68.50 70.00 70.75 71.50 71.50
SOUTH-
NORTH
SOUTH
EAST
DELTA
DELTA
-425 -350 -300 -250 -200 -25 0 0 25 50 50
-300 -250 -200 -175 -150 -25 0 0 25 50 50
-275 -225 -200 -175 -150 -25 0 0 25 50 50
42-4 64.47 65.97 65.97 66.22
Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. NORTH DELTA SOUTH DELTA 31-3 41-4 51-5 42-4 Staple 31-3 41-4 51-5 42-4 66.97 65.22 60.72 63.47 33 66.97 65.22 60.72 63.47 68.72 67.97 62.22 64.22 34 68.72 67.97 62.22 64.22 69.22 68.47 63.22 64.97 35 69.22 68.47 63.22 64.97 71.47 69.72 63.47 64.97 36 71.47 69.72 63.47 65.22
EAST TEXAS-OKLAHOMA 31-3 41-4 64.00 62.50 64.75 64.00 66.75 65.00 68.50 67.75 69.25 67.75 69.50 68.25 69.75 68.50 69.75 69.75
42-4 61.50 62.50 63.25 66.75 66.75 67.00 67.00 67.00
SOUTH-
NORTH
SOUTH
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
STRENGTH DIFFERENCES E. TX Grams WEST OK -250 -250 -225 -200 -175 -175 -150 -100 0 0 25 25 25
per tex 19.0 - 19.9 20.0 - 20.9 21.0 - 21.9 22.0 - 22.9 23.0 - 23.9 24.0 - 24.9 25.0 - 25.9 26.0 - 26.9 Base 27.0 - 28.9 29.0 - 29.9 30.0 - 30.9 31.0 - 32.9 33.0 & above
TEXAS -250 -250 -225 -200 -175 -175 -150 -100 0 0 25 25 25
21-2 65.00 66.00 68.00 68.50 70.50 70.75 71.50 71.50
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
Staple 26-31 32 33 34 35 36 37 38
MIKE DIFFERENCES - POINTS PER POUND E. TX WEST OK -1100 -1000 -750 -500 -350 0 0 0 -225 -400
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
SJ
SW
VALLEY
-600 -450 -300 -225 -200 -125 0 0 25 50 100
-500 -400 -300 0 0 75 125 250
TEXAS -1100 -1000 -750 -500 -350 0 0 0 -225 -400
SOUTH- NORTH SOUTH AVG. -250 -250 -342 -279 -225 -239 -200 -100 0 0 32 54 79
EAST -125 -110 -100 -25 0 0 20 30 40 50
DELTA -90 -80 -70 0 0 0 30 40 50 60
DELTA -90 -80 -70 0 0 0 30 40 50 60
21-2
21-2 62.97 65.22 69.47 70.07
51-5 55.97 56.47 58.22 58.47
SAN JOAQUIN VALLEY 31-3 41-4 32-3
69.12 75.37 78.87 80.37 82.62
67.62 73.87 77.37 78.62 80.37
DESERT
SJ
SW -1200 -1000 -900 -500 -300 0 25 0 -300 -550
VALLEY
-1600 -1000 -500 0 25 0 -500
64.97 66.97 67.77 67.87 67.87
77 & below 78 79 80 Base 81 82 83 84 85 86 & above
64.47 66.97 67.72 68.22 69.22
AVG. -1133 -988 -832 -489 -271 0 14 0 -271 -413
UNIFORMITY DIFFERENCES E. TX Unit WEST OK -90 -75 -60 0 0 0 10 10 20 30
DESERT SOUTHWEST 31-3 41-4 62.22 57.72 64.47 63.97 67.97 64.22 69.32 64.32
DESERT
SJ
SW -100 -90 -80 0 0 0 30 40 50 60
VALLEY -60 -50 -40 0 0 50 80 90 100 110
TEXAS -90 -75 -60 0 0 0 0 10 20 30
AVG. -92 -80 -69 -4 0 7 29 37 47 57
LANDED MILL QUOTATIONS - GROUP 201 MILL POINTS Cents per pound, even running lots, mike 35-49, strength 23.5 or more grams per tex, net weight, prompt shipment, delivered brokerage included. Quotations for group 200 mill points are slightly higher and for Alabama, Georgia and east Tennessee mills are slightly lower. 31-3
NQ NQ NQ
SE GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ--No quote available
NQ NQ NQ
42-4
31-3
NQ NQ NQ
NQ NQ NQ
DELTA GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ NQ NQ
42-4
NQ NQ NQ
Staple 31 32 33 34 35 36
31-3 NQ NQ NQ NQ
TX-OK GROWTH AREA 41-4 32-3 42-4 NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ
SJV GROWTH AREA 31-3 41-4 51-5
NQ NQ NQ
NQ NQ NQ
NQ NQ NQ July 6, 2017
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 Description
June
June
June
June
June 30
July
2-8
9-15
16-22
23-29
July 6
7-13
Adjusted world price 1/
68.43
68.03
67.31
64.60
64.79
65.33
Coarse 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
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. ICE futures contract settlement, designated spot market average for color 41, leaf 4, staple 34, and Far Eastern 'A' Index Color 41, Leaf 4, Staple 34 Date
Far Eastern
Futures Settlement
7-Market
A Index 1/
Jul-17
Oct-17
Dec-17
Mar-18
May-18
Jul-18
Average
Current
Forward
June 30
75.31
70.36
68.59
67.57
68.10
68.71
67.94
83.30
77.20
July 03
73.69
68.84
67.45
67.10
67.61
68.18
66.42
84.55
78.20
July 04
Holiday
Holiday
83.65
77.40
July 05 July 06
73.86 75.01
83.65 83.90
77.40 77.65
Holiday 69.01 69.47
Holiday
67.66 68.35
67.34 68.12
67.81 68.45
68.31 68.81
66.54 67.01
1/ Far Eastern A Index furnished by Cotton Outlook of Liverpool. Color 41, Leaf 4, Staple 34 Cents per Pound
7-Market
Date
Southeast
North Delta
South Delta
East TX/OK
West Texas
Desert SW
SJ Valley
Average
June 30
69.61
68.86
68.86
68.75
68.75
64.86
65.86
67.94
July 03
68.09
67.34
67.34
67.25
67.25
63.34
64.34
July 04 July 05 July 06
Holiday 68.26 68.72
67.51 67.97
Holiday 67.51 67.97
67.25 67.75
Holiday 67.25 67.75
63.51 63.97
66.42 Holiday
64.51 64.97
66.54 67.01
Source: USDA, AMS, Cotton and Tobacco Program, Cotton Market News. Marketing Years Description
2015-2016
2016-2017
Through June 30, 2016
Through June 29, 2017
Week
Mkt. Year
Week
Outstanding sales
-
1,270,300
-
1,917,000
Exports
307,100
7,591,000
302,500
12,642,900
Total export commitments
Mkt. Year
-
8,861,300
-
14,559,900
New sales
213,400
-
197,800
-
Buy-backs and cancellations
11,400
-
3,600
-
201,900
-
194,200
-
128,400
1,929,200
297,200
4,443,900
Net sales Sales next marketing year
Net upland sales of 194,200 RB for 2016/2017 were down 26 percent from the previous week, but up 34 percent from the prior 4-week average. Increases were reported for Vietnam (83,200 RB, including 2,200 RB switched from China and 1,100 RB switched from Japan), China (43,100 RB), South Korea (19,300 RB), Indonesia (18,800 RB, including 2,700 RB switched from Japan and decreases of 100 RB), and Turkey (11,600 RB). Reductions were reported for Japan (6,100 RB). For 2017/2018, net sales of 297,200 RB were reported primarily for China (65,600 RB), Mexico (47,300 RB), Vietnam (47,200 RB), and Japan (24,400 RB). Exports of 302,500 RB were up 21 percent from the previous week and 14 percent from the prior 4-week average. The primary destinations were Turkey (73,900 RB), Vietnam (61,700 RB), Indonesia (49,500 RB), China (28,500 RB), and Mexico (20,000 RB). Net sales of Pima totaling 1,800 RB for 2016/2017 were up 71 percent from the previous week, but down 70 percent from the prior 4-week average. Increases were for Japan (800 RB), Thailand (500 RB), and India (200 RB). For 2017/2018, net sales of 600 RB were reported for Japan. Exports of 4,100 RB--a marketing-year low--were down 65 percent from the previous week and 59 percent from the prior 4-week average. The destinations were primarily China (1,300 RB), India (1,000 RB), Japan (500 RB), and Peru (400 RB). Exports for Own Account: New exports for own account were reported to Vietnam (1,200 RB). Exports to Indonesia (13,200 RB) and South Korea (400 RB) were applied to new or outstanding sales. The current outstanding balance of 77,400 RB is for Indonesia (38,100 RB), Taiwan (14,400 RB), Vietnam (9,200 RB), India (5,500 RB), South Korea (4,600 RB), Bangladesh (3,200 RB), Thailand (1,900 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
July 6, 2017
9
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
5 6 3
Mike Range
Diff.
26 & Below
-1900
27-29
-1400
1
128.00
135.00
135.25
30-32
-900
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
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
5
80.00
82.25
82.25
1 2
Diff. -810 -1095 -715
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.
July 6, 2017
10
Contact & Subscription Information
Contact Information Division Director Barbara Meredith
[email protected]
(901) 384-3016
Deputy Division Director Cathy L. Greene
[email protected]
(901) 384-3016
Southeastern Area Reporter Danny Pino Jr.
[email protected]
(478) 752-3560
South Central Area Reporter Jeff Carnahan
[email protected]
(901) 384-3016
Southwestern Area Reporter Jane Byers-Angle
[email protected]
(806) 472-7635
Western Area Reporter Maria Townsend
[email protected]
(559) 651-3019
National Reporter Veronica Williamson
[email protected]
(843) 667-4381
Subscription Information All Market News reports can be found on the internet, free of charge. Click here for reports. Subscribe to email delivery of any Market News reports at [email protected] Printed copies can also be obtained by contacting Market News headquarters at the following address: USDA, AMS, Cotton and Tobacco Program Cotton Market News Division - Room 10 3275 Appling Road Memphis, TN 38133 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or part of an individual’s income is derived from any public assistance program (not all prohibited bases apply to all programs). Persons with disabilities who require alternative means of communication of program information (Braille, large print, audiotape, etc.) should contact the USDA’s TARGET Center at (202) 720-2600 (Voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 202509410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.
11
Vol. 98
No. 48
July 7, 2017 Inside this Issue Market Overview Price Support Southeastern South Central Southwestern Western Textile Mill Report Price Information
USDA, AMS, Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, Tennessee 38133
Weekly Cotton Market Review Average quotations were 13 points higher 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 66.98 cents per pound for the week ending Thursday, July 6, 2017. The weekly average was up from 66.85 last week and from 63.56 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 67.94 cents Friday, June 30 to a low of 66.42 cents Monday, July 3. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 6 totaled 375 bales. This compares to no bales reported last week and 1,780 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,563,825 bales compared to 1,469,153 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 69.47 cents, compared to 69.05 cents last week. Prices are in effect from July 7-13, 2017
Spot Quotations Forward Contracting ICE Futures
Adjusted World Price (AWP) Loan Deficiency Payment (LDP) Coarse Count Adjustment (CCA)
65.33 0.00 0.00
ELS Competitiveness Payment Fine Count Adjustment 2016 Crop Fine Count Adjustment 2017 Crop
0.00 0.00 0.00
Source: Farm Service Agency, FSA, USDA
A Index Pima Quotations
USDA ANNOUNCES SPECIAL IMPORT QUOTA 9 & 10 FOR UPLAND COTTON July 6, 2017
Contact Us [email protected]
The Department of Agriculture's Commodity Credit Corporation announced that the news release issued on June 22 and June 29, 2017, for the Upland Cotton Special Import Quota (#9 and #10) failed to recognize that the U.S. Far East price did not exceed the prevailing world market price during the consecutive 4-week period ending on the date of the announcement. We regret the error. When this condition (for any consecutive 4-week period, the U.S. Far East price exceeds the prevailing world market price) is met again in the future, a Special Import Quota announcement will be issued.
Regional Summaries Southeastern Market Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were steady. Trading of CCC-loan equities was inactive. Widespread thunderstorms brought moderate rainfall to areas from north Alabama to South Carolina early in the period. Locally heavy precipitation measured several inches in some areas. Sunny to partly cloudy conditions prevailed much of the period and daytime high temperatures warmed into the 90s mid-week. Plants thrived under the hot, humid conditions and squaring was well underway. Boll-setting advanced in Alabama and Georgia. Late-week thunderstorms brought light precipitation to areas across the lower southeast. Fieldwork was limited in areas of south Alabama where soils remained waterlogged from excessive moisture received in recent weeks. Weed control was becoming problematic in fields too soggy to support equipment. Mostly sunny to partly cloudy conditions prevailed in North Carolina and Virginia during the week. The crop thrived under the drier and warmer conditions, with daytime high temperatures in the low-to-mid-90s and boll-setting was just getting underway. Producers scouted fields and applied sprays to combat plant bugs. According to the National Agricultural Statistics Service’s Crop Progress report released July 5, squaring reached 57 percent in Georgia and Virginia, 55 in Alabama, 53 in North Carolina, and 45 percent squared in South Carolina. South Central Markets North Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cloudy to partly cloudy conditions persisted during the period. Intermittent thunderstorms during the week brought up to 2 inches of precipitation to the Memphis territory. The moisture was generally beneficial to the crop, except in fields saturated from previous storms. Daytime temperatures were in the 80s and 90s. Overnight lows were in the 60s to 70s. The crop made excellent progress under good
conditions. Producers were busy scouting fields for a variety of insect pests, including bollworms; treatments were applied as necessary to control outbreaks of plant bugs. According to the National Agricultural Statistics Service Crop Progress report released July 5, boll setting reached 27 percent in Arkansas, 3 percent in Missouri, and 9 percent in Tennessee. NASS rated the crop condition at good to excellent. South Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Scattered showers throughout the period brought around 3 inches of moisture to some areas, with lesser amounts reported generally. Daytime temperatures were in the 80s to 90s. Overnight lows were in the 60s to 70s. The crop made good progress in most areas. Developing cotton plants would benefit from a period of hot, clear weather to allow for the accumulation of heat units, especially in late-planted fields. Producers were battling weeds in some of the wetter fields. Insect populations were carefully monitored, but most local experts reported that pressure was light. Control measures were taken as necessary to treat hotspots. According to the National Agricultural Statistics Service Crop Progress report released July 5, boll setting reached 31 percent in Louisiana and 10 percent in Mississippi. Southwestern Markets East Texas-Oklahoma 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. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light and for new-crop cotton. Interest was best from China, Korea, and Mexico. Hot, dry conditions made for perfect defoliation weather in the Rio Grande Valley. Initial harvesting began of dryland fields. Defoliation of irrigated fields will begin in about a week. Modules accumulated on gin yards and fields. Gins were ready for cotton. Ginning was expected to begin next 2
Regional Summaries week after electrical meters were read. Sources reported a very good end to the growing season and aboveaverage yields were expected. The Corpus Christi classing office was gearing up for a record classing season. Mostly dry conditions in east Texas and the Upper Coast allowed the crop to advance. Some sources reported the crop slightly ahead of schedule in the Upper Coast. Overall, the crop made good progress. In Kansas, the crop made good progress. Herbicide drift damage was reported in some fields, which traveled from spraying weeds in fallow fields. Sources reported damage was light. Local experts indicated the Oklahoma crop made good progress after a rough start. The irrigated crop made good progress. The dryland crop development was described as a “mixed bag”. Sources suspect that acreage in Kansas and Oklahoma could be higher than the acreage reported by the National Agricultural Statistics Service. The increase in acreage was attributed to growers, who had not planted cotton in several years and lower competitive crop prices. A new cotton gin is being built in Carnegie, OK; it is expected to be operational for the 2017 season. West Texas 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. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate for new-crop cotton for November/December 2017 shipment. Interest was best from China, Korea, and Mexico. Scattered shower activity continued through the period. Precipitation totals ranged from three-quarters of an inch to over 4 inches in areas around Lubbock north and into the Rolling Plains. Areas in the Lamesa territory received around one-tenth to one-quarter of an inch of moisture. The San Angelo area received around one and one-half inches. There was some hail and wind damage to the crop. Saturated fields prevented producers from assessing how much of the crop is damaged. Soil moisture profiles were greatly improved by two weeks of showers and was especially beneficial for dryland acreage. Irrigated acreage was in excellent condition and progressing normally. The dryland crop was in various stages of development. Some sources reported that some producers completed planting this week around Lubbock. Local representatives were in general agreement with the National Agricultural Statistics Service Acreage report released June 30 for Texas acreage planted; although some dryland producers replanted after insurance adjustments were made. Some representatives estimated that uninsured planted acreage could add an additional 100,000 to 150,000 acres to west Texas. Western Markets Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Excessive heat warnings were issued for central and western Arizona as high temperatures reached 113 degrees. Nighttime lows were in the high 80s, which did not give cotton plants a break from the heat. Producers irrigated the crop to minimize heat stress. Assessments from the previous hot spell were on-going. Overall, the crop made good progress. The Arizona Cotton Research and Protection Council has mapped about 166,631 acres of Upland cotton for the state. This mirrors closely to the 165,000 acres planted reported by the National Agricultural Statistics Service on June 30. The crop made good progress in New Mexico and El Paso, Texas. Some fields were blooming in El Paso, Texas. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Hot, dry conditions advanced the crop. Blooming progressed steadily in the most mature fields. Chemical treatments were made for lygus. The crop made good progress. Sources reported flooding concerns diminished as the mountain snowpack rapidly dwindled.
3
Regional Summaries 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 good for 2016-crop cotton and light for new-crop. Interest was best from China and Thailand. Hot, dry conditions continued in the region. Excessive heat warnings were issued for central and western Arizona as temperatures reached over the 110s mid-week. The Arizona Cotton Research and Protection Council has mapped about 13,723 acres of AP cotton for the state. This compares to 15,000 acres reported by the National Agricultural Statistics Service on June 30. The crop made good progress in Arizona. Sources reported that damage from the previous hot spell was underway in central Arizona. There was concern about sterile flowers. The San Joaquin Valley crop made excellent progress. Local experts reported that last week’s heat was a positive for the crop. Lygus treatments continued in some fields. The crop made good progress in New Mexico and El Paso, Texas. Textile Mill Domestic mill buyers inquired for a moderate volume of 2017-crop cotton, color 51 and better, leaf 5 and better, and staple mostly 34 and longer for fourth quarter 2017 and first quarter 2018 delivery. No sales were reported. Additional inquiries were light; most mills have covered their nearby raw cotton needs. Finished product demand was lackluster. Most mills were down a few days to up to a week for the Independence Day holiday. Demand through export channels was moderate, but had improved due to lower ICE futures prices. Agents for mills in Vietnam inquired for a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 36 for November/December shipment and January through March 2018 shipment.
4
Regional Price Information
Southeastern Markets
No trading activity was reported.
South Central Markets
North Delta A light volume of color 31 and better, leaf mostly 4 and better, staple 35 and longer, mike averaging 48.1, strength averaging 30.8, and uniformity averaging 81.2 traded at around 68.00 cents per pound, FOB car/truck (Rule 5, compression charges paid). A light volume of color mostly 42 and better, leaf 5 and better, staple 34 and longer, mike averaging 48.6, strength averaging 31.1, and uniformity averaging 82.4 traded for around 68.50 cents, same terms as above. South Delta A light volume of color 31 and better, leaf mostly 4 and better, staple 35 and longer, mike averaging 48.1, strength averaging 30.8, and uniformity averaging 81.2 traded at around 68.00 cents per pound, FOB car/truck (Rule 5, compression charges paid). Southwestern Markets East Texas
No trading activity was reported.
No trading activity was reported.
West Texas
Western Markets
Desert Southwest A light volume of New Mexico cotton, color 21 and 31, leaf mostly 2, staple 35 and longer, mike averaging 48.0, strength averaging 29.7, and uniformity averaging 81.4 traded for around 66.75 cents per pound, FOB car/truck (compression charges not paid). San Joaquin Valley
No trading activity was reported.
No trading activity was reported.
American Pima
5
Forward Contracting Forward contracting of 2017-crop cotton. Upland cotton gr ower s in the United States had booked about 8 percent of their expected acreage by the end of June this season. This compares with 2 percent booked through the same period last year. Contracting has been most active in the Southeastern states, where about 13 percent of the crop was under contract by the end of June and compares with 3 percent a year earlier. South Central states' growers had forward contracted about 10 percent, compared with 7 percent in 2016. Southwestern states’ growers had booked 6 percent by the end of June, compared to less than 1 percent of the crop last year. Growers in the Western states had 4 percent booked, compared with 1 percent at the end of June 2016. These estimates were based on the National Agricultural Statistics Board's June Planted Acreage report and informal surveys made by the USDA, Agricultural Marketing Service, Cotton and Tobacco Program. Forward contracting of Upland cotton by growers, as of July 1, crops of 2008-2017 and planted acreage, 2017 crop 1/
Cotton Crops 2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Planted Acreage 2/
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
1,000 acres
Alabama Florida Georgia North Carolina South Carolina Virginia
10 14 12 10 11 13
2 11 1 2
9 9 24 19 18 26
40 24 22 46 27 32
23 7 12 14 4 10
33 14 40 20 21 30
3 * 11 16 25 17
6 7 2 6 4 9
3 5 3 3 2 6
6 4 17 7 7 18
450 90 1,350 360 240 75
Southeastern States
12
6
19
31
13
32
11
4
3
13
2,565
Arkansas Louisiana Mississippi Missouri Tennessee
5 67 6 19 1
1 11 * -
* 28 1 -
64 52 53 84 73
33 47 16 31 37
15 14 11 26 9
9 10 7 9 9
4 2 1 * 3
8 31 3 1 3
11 35 7 4 7
440 200 550 300 320
South Central States
16
2
4
64
30
15
9
2
7
10
1,810
Oklahoma 3/ Texas
8
1
20
15
4
2
1 4
1 1
*
1 7
526 6,600
Southwestern States
8
1
19
14
4
2
4
1
*
6
7,126
Arizona California New Mexico
5 -
-
-
1 6 -
4 6 -
3 3 -
* -
2 -
2 -
7 0 0
165 81 56
Western States
3
-
-
3
4
3
*
1
1
4
302
United States
10
2
16
26
10
11
6
1
2
8
11,803
States
1/ Contracting estimates do not include cotton consigned to marketing organizations but do include cotton contracted with marketing organizations. 2/ June 2017 Planted Acreage, Agricultural Statistics Board, NASS, USDA. 3/ Includes Kansas. * Less than .05 percent.
6
Number of Bales in Certificated Stocks Stocks as of 7-6-2017
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
33,612
0
0
Galveston, TX
16,500
0
0
Greenville, SC
57
0
0
Houston, TX
165
0
0
Memphis, TN
58,833
6,603
0
Total
109,167
6,603
0
Delivery Points
Source: USDA, AMS and ICE U. S. Futures
Average Price for 31-3-35
Average Price for 41-4-34 Market
Fri
Mon
Tue
Wed
Thu
30-Jun
3-Jul
4-Jul
5-Jul
6-Jul
Market
Fri
Mon
Tue
Wed
Thu
30-Jun
3-Jul
4-Jul
5-Jul
6-Jul
SE
69.61
68.09
H
68.26
68.72
SE
70.86
69.34
H
69.51
69.97
ND
68.86
67.34
O
67.51
67.97
ND
70.11
68.59
O
68.76
69.22
SD
68.86
67.34
L
67.51
67.97
SD
70.11
68.59
L
68.76
69.22
ETX
68.75
67.25
I
67.25
67.75
ETX
70.25
68.75
I
68.75
69.25
WTX
68.75
67.25
D
67.25
67.75
WTX
70.25
68.75
D
68.75
69.25
DSW
64.86
63.34
A
63.51
63.97
DSW
68.86
67.34
A
67.51
67.97
SJV
65.86
64.34
Y
64.51
64.97
SJV
74.76
73.24
Y
7-Mkt Avg
67.94
66.42
66.54
67.01
7-Mkt Avg
70.74
69.23
Source: USDA, AMS, Cotton and Tobacco Program
73.41
73.87
69.35
69.82
Source: USDA, AMS, Cotton and Tobacco Program
Spot Transactions Market
Fri
Mon
Tue
Wed
Thu
30-Jun
3-Jul
4-Jul
5-Jul
6-Jul
Upland SE
0
0
H
0
0
ND
0
0
SD
0
0
O
32
108
L
183
0
ETX
0
0
I
0
0
WTX
0
0
D
0
0
DSW
0
0
A
52
0
SJV
0
0
Y
0
0
Total
0
0
267
108
Pima
0
0
0
0
0
Source: USDA, AMS, Cotton and Tobacco Program
7
31-3 68.22 69.47 69.97 71.47
SOUTHEAST 41-4 51-5 66.72 63.22 68.72 64.22 69.22 64.72 70.97 64.97
21-2 64.75 65.25 67.00 68.50 70.00 70.75 71.50 71.50
SOUTH-
NORTH
SOUTH
EAST
DELTA
DELTA
-425 -350 -300 -250 -200 -25 0 0 25 50 50
-300 -250 -200 -175 -150 -25 0 0 25 50 50
-275 -225 -200 -175 -150 -25 0 0 25 50 50
42-4 64.47 65.97 65.97 66.22
Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. NORTH DELTA SOUTH DELTA 31-3 41-4 51-5 42-4 Staple 31-3 41-4 51-5 42-4 66.97 65.22 60.72 63.47 33 66.97 65.22 60.72 63.47 68.72 67.97 62.22 64.22 34 68.72 67.97 62.22 64.22 69.22 68.47 63.22 64.97 35 69.22 68.47 63.22 64.97 71.47 69.72 63.47 64.97 36 71.47 69.72 63.47 65.22
EAST TEXAS-OKLAHOMA 31-3 41-4 64.00 62.50 64.75 64.00 66.75 65.00 68.50 67.75 69.25 67.75 69.50 68.25 69.75 68.50 69.75 69.75
42-4 61.50 62.50 63.25 66.75 66.75 67.00 67.00 67.00
SOUTH-
NORTH
SOUTH
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
STRENGTH DIFFERENCES E. TX Grams WEST OK -250 -250 -225 -200 -175 -175 -150 -100 0 0 25 25 25
per tex 19.0 - 19.9 20.0 - 20.9 21.0 - 21.9 22.0 - 22.9 23.0 - 23.9 24.0 - 24.9 25.0 - 25.9 26.0 - 26.9 Base 27.0 - 28.9 29.0 - 29.9 30.0 - 30.9 31.0 - 32.9 33.0 & above
TEXAS -250 -250 -225 -200 -175 -175 -150 -100 0 0 25 25 25
21-2 65.00 66.00 68.00 68.50 70.50 70.75 71.50 71.50
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
Staple 26-31 32 33 34 35 36 37 38
MIKE DIFFERENCES - POINTS PER POUND E. TX WEST OK -1100 -1000 -750 -500 -350 0 0 0 -225 -400
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
SJ
SW
VALLEY
-600 -450 -300 -225 -200 -125 0 0 25 50 100
-500 -400 -300 0 0 75 125 250
TEXAS -1100 -1000 -750 -500 -350 0 0 0 -225 -400
SOUTH- NORTH SOUTH AVG. -250 -250 -342 -279 -225 -239 -200 -100 0 0 32 54 79
EAST -125 -110 -100 -25 0 0 20 30 40 50
DELTA -90 -80 -70 0 0 0 30 40 50 60
DELTA -90 -80 -70 0 0 0 30 40 50 60
21-2
21-2 62.97 65.22 69.47 70.07
51-5 55.97 56.47 58.22 58.47
SAN JOAQUIN VALLEY 31-3 41-4 32-3
69.12 75.37 78.87 80.37 82.62
67.62 73.87 77.37 78.62 80.37
DESERT
SJ
SW -1200 -1000 -900 -500 -300 0 25 0 -300 -550
VALLEY
-1600 -1000 -500 0 25 0 -500
64.97 66.97 67.77 67.87 67.87
77 & below 78 79 80 Base 81 82 83 84 85 86 & above
64.47 66.97 67.72 68.22 69.22
AVG. -1133 -988 -832 -489 -271 0 14 0 -271 -413
UNIFORMITY DIFFERENCES E. TX Unit WEST OK -90 -75 -60 0 0 0 10 10 20 30
DESERT SOUTHWEST 31-3 41-4 62.22 57.72 64.47 63.97 67.97 64.22 69.32 64.32
DESERT
SJ
SW -100 -90 -80 0 0 0 30 40 50 60
VALLEY -60 -50 -40 0 0 50 80 90 100 110
TEXAS -90 -75 -60 0 0 0 0 10 20 30
AVG. -92 -80 -69 -4 0 7 29 37 47 57
LANDED MILL QUOTATIONS - GROUP 201 MILL POINTS Cents per pound, even running lots, mike 35-49, strength 23.5 or more grams per tex, net weight, prompt shipment, delivered brokerage included. Quotations for group 200 mill points are slightly higher and for Alabama, Georgia and east Tennessee mills are slightly lower. 31-3
NQ NQ NQ
SE GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ--No quote available
NQ NQ NQ
42-4
31-3
NQ NQ NQ
NQ NQ NQ
DELTA GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ NQ NQ
42-4
NQ NQ NQ
Staple 31 32 33 34 35 36
31-3 NQ NQ NQ NQ
TX-OK GROWTH AREA 41-4 32-3 42-4 NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ
SJV GROWTH AREA 31-3 41-4 51-5
NQ NQ NQ
NQ NQ NQ
NQ NQ NQ July 6, 2017
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 Description
June
June
June
June
June 30
July
2-8
9-15
16-22
23-29
July 6
7-13
Adjusted world price 1/
68.43
68.03
67.31
64.60
64.79
65.33
Coarse 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
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. ICE futures contract settlement, designated spot market average for color 41, leaf 4, staple 34, and Far Eastern 'A' Index Color 41, Leaf 4, Staple 34 Date
Far Eastern
Futures Settlement
7-Market
A Index 1/
Jul-17
Oct-17
Dec-17
Mar-18
May-18
Jul-18
Average
Current
Forward
June 30
75.31
70.36
68.59
67.57
68.10
68.71
67.94
83.30
77.20
July 03
73.69
68.84
67.45
67.10
67.61
68.18
66.42
84.55
78.20
July 04
Holiday
Holiday
83.65
77.40
July 05 July 06
73.86 75.01
83.65 83.90
77.40 77.65
Holiday 69.01 69.47
Holiday
67.66 68.35
67.34 68.12
67.81 68.45
68.31 68.81
66.54 67.01
1/ Far Eastern A Index furnished by Cotton Outlook of Liverpool. Color 41, Leaf 4, Staple 34 Cents per Pound
7-Market
Date
Southeast
North Delta
South Delta
East TX/OK
West Texas
Desert SW
SJ Valley
Average
June 30
69.61
68.86
68.86
68.75
68.75
64.86
65.86
67.94
July 03
68.09
67.34
67.34
67.25
67.25
63.34
64.34
July 04 July 05 July 06
Holiday 68.26 68.72
67.51 67.97
Holiday 67.51 67.97
67.25 67.75
Holiday 67.25 67.75
63.51 63.97
66.42 Holiday
64.51 64.97
66.54 67.01
Source: USDA, AMS, Cotton and Tobacco Program, Cotton Market News. Marketing Years Description
2015-2016
2016-2017
Through June 30, 2016
Through June 29, 2017
Week
Mkt. Year
Week
Outstanding sales
-
1,270,300
-
1,917,000
Exports
307,100
7,591,000
302,500
12,642,900
Total export commitments
Mkt. Year
-
8,861,300
-
14,559,900
New sales
213,400
-
197,800
-
Buy-backs and cancellations
11,400
-
3,600
-
201,900
-
194,200
-
128,400
1,929,200
297,200
4,443,900
Net sales Sales next marketing year
Net upland sales of 194,200 RB for 2016/2017 were down 26 percent from the previous week, but up 34 percent from the prior 4-week average. Increases were reported for Vietnam (83,200 RB, including 2,200 RB switched from China and 1,100 RB switched from Japan), China (43,100 RB), South Korea (19,300 RB), Indonesia (18,800 RB, including 2,700 RB switched from Japan and decreases of 100 RB), and Turkey (11,600 RB). Reductions were reported for Japan (6,100 RB). For 2017/2018, net sales of 297,200 RB were reported primarily for China (65,600 RB), Mexico (47,300 RB), Vietnam (47,200 RB), and Japan (24,400 RB). Exports of 302,500 RB were up 21 percent from the previous week and 14 percent from the prior 4-week average. The primary destinations were Turkey (73,900 RB), Vietnam (61,700 RB), Indonesia (49,500 RB), China (28,500 RB), and Mexico (20,000 RB). Net sales of Pima totaling 1,800 RB for 2016/2017 were up 71 percent from the previous week, but down 70 percent from the prior 4-week average. Increases were for Japan (800 RB), Thailand (500 RB), and India (200 RB). For 2017/2018, net sales of 600 RB were reported for Japan. Exports of 4,100 RB--a marketing-year low--were down 65 percent from the previous week and 59 percent from the prior 4-week average. The destinations were primarily China (1,300 RB), India (1,000 RB), Japan (500 RB), and Peru (400 RB). Exports for Own Account: New exports for own account were reported to Vietnam (1,200 RB). Exports to Indonesia (13,200 RB) and South Korea (400 RB) were applied to new or outstanding sales. The current outstanding balance of 77,400 RB is for Indonesia (38,100 RB), Taiwan (14,400 RB), Vietnam (9,200 RB), India (5,500 RB), South Korea (4,600 RB), Bangladesh (3,200 RB), Thailand (1,900 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
July 6, 2017
9
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
5 6 3
Mike Range
Diff.
26 & Below
-1900
27-29
-1400
1
128.00
135.00
135.25
30-32
-900
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
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
5
80.00
82.25
82.25
1 2
Diff. -810 -1095 -715
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.
July 6, 2017
10
Contact & Subscription Information
Contact Information Division Director Barbara Meredith
[email protected]
(901) 384-3016
Deputy Division Director Cathy L. Greene
[email protected]
(901) 384-3016
Southeastern Area Reporter Danny Pino Jr.
[email protected]
(478) 752-3560
South Central Area Reporter Jeff Carnahan
[email protected]
(901) 384-3016
Southwestern Area Reporter Jane Byers-Angle
[email protected]
(806) 472-7635
Western Area Reporter Maria Townsend
[email protected]
(559) 651-3019
National Reporter Veronica Williamson
[email protected]
(843) 667-4381
Subscription Information All Market News reports can be found on the internet, free of charge. Click here for reports. Subscribe to email delivery of any Market News reports at [email protected] Printed copies can also be obtained by contacting Market News headquarters at the following address: USDA, AMS, Cotton and Tobacco Program Cotton Market News Division - Room 10 3275 Appling Road Memphis, TN 38133 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or part of an individual’s income is derived from any public assistance program (not all prohibited bases apply to all programs). Persons with disabilities who require alternative means of communication of program information (Braille, large print, audiotape, etc.) should contact the USDA’s TARGET Center at (202) 720-2600 (Voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 202509410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.
11
