Weekly Cotton Market Review
Mp_cn812
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 14 November 3, 2017 Inside this Issue Market Overview Price Support Spot Quotations
ICE Futures
Average quotations were virtually the same as 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 66.92 cents per pound for the week ending Thursday, November 2, 2017. The weekly average was up from 66.91 last week, but down from 68.14 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 66.61 cents Friday, October 27 to a high of 67.34 cents Thursday, November 2. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended November 2 totaled 38,785 bales. This compares to 23,247 bales reported last week and 23,957 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 117,707 bales compared to 102,902 bales the corresponding week a year ago. The ICE December settlement prices ended the week at 69.08 cents, compared to 68.19 cents last week.
A Index Southeastern
Average Prices 41-4-34 Date
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Textile Mill Report
27-Oct 30-Oct 31-Oct
68.95 69.39 69.13
67.70 68.14 67.88
67.70 68.14 67.88
67.75 68.25 68.25
67.25 67.75 67.75
62.95 63.39 63.13
63.95 64.64 64.38
66.61 67.10 66.91
South Central
1-Nov 2-Nov
68.92 69.83
67.67 68.33
67.67 68.33
67.25 67.75
67.75 68.25
62.92 63.83
64.17 65.08
66.62 67.34
Date
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Western
27-Oct
70.20
68.95
68.95
69.25
68.75
66.95
72.85
69.41
30-Oct
70.64
69.39
69.39
69.75
69.25
67.39
73.54
69.91
Forward Contracting
31-Oct
70.38
69.13
69.13
69.75
69.25
67.13
73.28
69.72
1-Nov 2-Nov
70.17 71.08
68.92 69.58
68.92 69.58
68.75 69.25
69.25 69.75
66.92 67.83
73.07 73.98
69.43 70.15
Southwestern
Pima Quotations
Average Prices 31-3-35
Date
Dec-17
Mar-18
May-18
Jul-18
Oct-18
Dec-18
Far Eastern A Index 1/ Current
27-Oct 30-Oct 31-Oct 1-Nov 2-Nov
68.20 68.64 68.38 68.17 69.08
68.11 68.58 68.34 68.15 68.97
69.16 69.65 69.42 69.22 70.03
69.89 70.36 70.16 69.96 70.73
69.39 69.88 69.71 69.39 69.98
68.97 69.47 69.30 69.05 69.83
79.10 79.10 79.55 79.25 79.00
Date 27-Oct 30-Oct 31-Oct 1-Nov 2-Nov
SE 1,107 0 526 0 0
ND 0 0 0 0 623
SD 0 0 0 0 2,848
ET-OK 1,322 2,088 4,492 3,839 9,150
WT 1,604 1,665 1,953 2,258 4,726
DSW 0 0 0 0 0
SJV 0 500 84 0 0
PIMA 0 0 0 0 0
Weekly Totals
1,633
623
2,848
20,891
12,206
0
584
0
Futures Settlement
Cotton Market Reports
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Spot Transactions
Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
Spot cotton trading was moderate. Supplies were moderate. Demand was moderate. Producer offerings were light. Average local spot prices were weak. Fieldwork and harvesting activity was briefly interrupted in areas throughout the Southeast as a frontal system brought around one-quarter of an inch of moisture to areas from the Gulf Coast to the eastern Carolinas. Sunny conditions returned early in the week and mostly clear to partly cloudy conditions prevailed. Seasonably cold daytime temperatures in the upper 50s to lower 60s warmed to the mid-70s to lower 80s late week. Harvesting advanced across the region. In Georgia, the aerial application of defoliants was still underway, but cooler temperatures had slowed desiccation of later-planted cotton. Yields of 1,200 to 1,400 pounds per acre were reported on some irrigated acreage; yields of 750 to 1,100 pounds per acre were reported on some dryland fields. In Alabama, some fields remained a couple of weeks behind as the crop progressed and bolls
continued to crack open throughout the state. Harvest activity advanced at a rapid pace in the Carolinas and Virginia as fieldwork remained uninterrupted. According to the National Agricultural Statistics Service’s Crop Progress report released October 30, harvesting was 66 percent completed in Virginia, 54 in South Carolina, 46 in Georgia, and 53 percent completed in Alabama and North Carolina. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41 and better, leaf 4 and better, and staple 34 and longer for second quarter 2018 delivery. No sales were reported. Mill buyers and domestic cotton shippers were busy scheduling deliveries of previously booked 2017-crop cotton. Most mills operated four to seven days. Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted or low grade styles of cotton.
Trading A light volume of color 41 and better, leaf 4 and better, staple 34 and longer, mike mostly 37-49, strength mostly 30-34, and uniformity 79-85 traded at around 73.55 cents per pound, Georgia terms, FOB car/truck (Rule 5, compression charges paid).
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta Spot cotton trading was moderate. Producers were steadily delivering previously contracted cotton. 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. Cold and partly cloudy conditions characterized the weather pattern during the week. Daytime temperatures were in the 50s and 60s. Overnight lows were in the 30s. Damp conditions returned late week and further delayed outdoor activities. Ginning continued without interruption, since most gins had large backlogs of modules on their yards. Producers were harvesting cotton and shredding stalks in fields dry enough to support equipment. Reported yields ranged from 900 to 1,400 pounds per acre. According to the National Agricultural Statistics Service’s Crop Progress report released October 30, harvesting in Arkansas was 82 percent completed, 81 in Missouri, and 65 percent in Tennessee.
South Delta Spot cotton trading was moderate. Producers were steadily delivering previously contracted cotton. Supplies of available cotton were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was slow. No forward contracting was reported. Clear and cold conditions early in the week allowed producers to make good progress harvesting and ginning. A warm, moist air mass brought rain showers and milder temperatures late week. Daytime temperatures were in the 50s to 80s. Overnight lows were in the 20s to 60s. Harvesting activities were briefly delayed throughout the region; producers were concerned about the effect of the wet weather on fiber quality. The cold, wet weather inhibited the effectiveness of defoliants in a few fields. Producers reported yields as high as 1,300 pounds per acre. Ginning progressed slowly, but steadily. Producers were forced to wait until fields dried sufficiently to support equipment to continue harvesting and shredding stalks. According to the National Agricultural Statistics Service’s Crop Progress report released October 30, the crop in Louisiana had been 94 percent harvested, compared to 77 percent in Mississippi.
Trading North Delta A moderate volume of color 41 and better, leaf mostly 5 and better, staple 35 and longer, mike 33-42, strength 29-31, and uniformity 81-84 traded at around 250 off ICE December futures, FOB car/truck (Rule 5, compression charges paid). A light volume of CCC-loan equities traded for around 14.00 cents.
South Delta A light volume of color 31 and better, leaf 3 and better, staple 35 and longer, mike averaging 44.5, strength averaging 30.7, and uniformity averaging 81.0 traded at around 100 points on ICE December futures, FOB car/truck (Rule 5, compression charges paid). A moderate volume of mostly color 42 and better, leaf 5 and better, staple 36 and longer, mike 37-49, strength 27-32, and uniformity 79-82 traded for around 25 points on ICE December futures, same terms as above. A light volume of color 41 and better, leaf 5 and better, staple 35 and 36, mike 48-53, strength 29-33, uniformity 79-82, and 25 percent extraneous matter (bark) traded at around 150 off ICE December futures, same terms as above. A moderate volume of CCC-loan equities sold for 12.00 to 14.00 cents. 3
Pictured above: Cotton modules arriving and awaiting ginning and fields where harvesting has been delayed due to wet fields.
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 heavy. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate to heavy. Interest was best from China, Taiwan, and Turkey. Harvesting neared completion in the Upper Coastal and Blackland Prairie counties. Modules were hauled from fields to gin yards as space became available. Ginning continued. Stalk destruction was underway, but was briefly interrupted by light, intermittent rainfall. Cottonseed prices paid to the producers were reported at $95 to $140 per ton, depending on quality. The Corpus Christi Classing Office continued to operate two shifts and has graded more than 1.6 million samples for producers in south Texas, the Rio Grande Valley, and east Texas. In Kansas and Oklahoma, a cold front early in the reporting period brought cooler conditions, rain, and gusty winds. Harvesting continued uninterrupted. Modules began to accumulate on gin yards and some gins launched operations. Harvesting was 12 percent completed in Kansas, and 32 percent completed in Oklahoma, according to the National Agricultural Statistics Service’s Crop Progress report released on October 30.
West Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate to heavy. Interest was best from China, Taiwan, and Turkey. A cold front moved into the region early in the reporting period with daytime temperature highs in the mid-40s to low 80s. Overnight temperatures were in the low 30s to low 50s. Outside conditions were breezy with gusts near 30 miles per hour, which helped leaves fall from plants. Light rainfall was received on October 31 that slowed harvesting activities. Eastern New Mexico received light snowfall and a wintry mix that briefly halted fieldwork. A warming trend returned that allowed harvesting and ginning to expand. Some gins added night shifts for around-the-clock operations. Modules were transported from fields to gin yards. Three module fires were reported in different locations that caused extensive damage to modules and some cotton still on the stalk, according to local reports. Irrigated acres that have been harvested were watered for winter wheat. The Abilene, Lamesa, and Lubbock Classing Offices added additional shifts to keep pace with the incoming volume of samples to be graded. Cottonseed prices paid to the producers were reported at $125 to $150 per ton.
Trading
East Texas A heavy volume of color 31 and better, leaf 3 and better, staple 36 and longer, mike 40-48, strength 27-32, and uniformity 78-83 sold for 69.00 to 70.00 cents per pound, FOB warehouse (compression charges not paid). A mixed lot containing a light volume of color 54 and better, leaf 4 and better, staple 36 and longer, mike 45-50, strength 28-32, uniformity 80-82, and 50 percent extraneous matter sold for around 60.50 cents, same terms as above. A mixed lot containing a moderate volume of color mostly 52 and better, leaf 4 and better, staple 34 and 35, mike 44-52, strength 28-34, uniformity 80-82, and 50 percent extraneous matter sold for around 59.00 cents, same terms as above.
5
In Oklahoma, a light volume of mostly color 32 and better, leaf 3 and 4, staple 36 and 37, mike 44-48, strength 28-30, and uniformity 81-82 sold for around 68.50 cents, FOB car/truck (compression charges not paid). West Texas A moderate volume of mostly color 31 and 41, leaf 4 and 5, staple 39 and 40, mike 34-41, strength 29-31, uniformity 80-82, and 25 percent extraneous matter sold for around 68.00 cents per pound, FOB car/truck (compression charges not paid). A mixed lot containing a light volume of mostly color 31 and 32, leaf 3 and better, staple 35 and longer, mike 42-47, strength averaging 29.5, and uniformity 76-81 sold for around 66.00 cents, same terms as above. A light volume of mixed lots containing mostly color 42 and 43, leaf 4 and better, staple 34 and longer, mike 33-36, strength 25-27, uniformity 76-78, and 75 percent extraneous matter sold for around 59.00 cents, same terms as above.
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 were light. Demand was moderate. Producers delivered 2017-crop cotton to the co-op, merchant marketing pools, or into the CCC loan program. Average local prices were steady. No domestic mill activity was reported. Foreign mill inquiries were light. Partly cloudy skies and moderate temperatures were prevalent in Arizona. Rainfall was recorded in the period. Harvesting was active in central Arizona. Producers were shredding stalks. In Safford, Arizona, defoliation advanced, but harvesting was slow as producers determined that the crop was not quite ready. Quality results of Arizona cotton were good. Temperatures were mostly in the 60s and 70s for New Mexico and El Paso, Texas. Scattered showers were reported early in the period. Harvesting was slowed. Modules were transported to gin yards. Ginning was initiated. San Joaquin Valley (SJV) Spot cotton trading was slow. Supplies and demand were light. Producers delivered 2017-crop cotton to the co-op, merchant marketing pools, or into the CCC
loan program. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the 80s for most of the week. Rain is in the near-term forecast. Harvesting was on-going. Stalk shredding was active. Ginning continued without interruption. American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. Producers inquired for contracts. No forward contracting or domestic mill activity were reported. Foreign mill inquiries were moderate. According to the Foreign Agricultural Service export sales report, approximately 389,800 bales of 2017-crop AP was committed for the week ending October 26, 2017. Temperatures were in the 70s to 80s in Arizona, California, New Mexico, and El Paso, Texas. Defoliation and harvesting activities were on-going for the region. Arizona producers were pleased with yield results and yields were near average. Ginning was active.
Trading Desert Southwest A heavy volume of 2017-crop Arizona cotton for contract base quality color 21, leaf 2, and staple 36 and longer was contracted at around 150 points on ICE December futures.
San Joaquin Valley A moderate volume of mostly color 31, leaf 2 and better, staple 37 and longer, mike 37-49, strength 32-33, and uniformity 81-83 traded for around 80.00 cents, UD free, FOB warehouse. No trading activity was reported.
American Pima
7
Photos Courtesy of: Maria Townsend
8
2017 Crop Quality Southeast Quality Summary 2017-Crop Region Southeast
Classing Office Florence Macon Memphis Southeast
Bales 293,543 565,927 55,276 914,746
Color Grade 41 31 41 31
Leaf Grade 3 3 4 3
Trash 0.45 0.37 0.53 0.40
Mike 4.60 4.40 4.15 4.45
Staple 36.36 36.63 37.57 36.60
Strength 30.34 29.73 31.01 30.00
Uniformity 81.87 81.74 82.14 81.81
Number of Gins 53 72 14 139
Uniformity 81.87 82.43 81.53
Number Of Gins 40 74 19
South Central Quality Summary 2017-Crop Region South Central
Classing Office Dumas Memphis Rayville
Bales 494,018 701,403 211,578
South Central
1,406,999
Color Grade 31 31 41
Leaf Grade 4 3 4
Trash 0.50 0.46 0.46
Mike 4.39 4.35 4.52
Staple 37.73 37.56 37.04
Strength 31.70 31.16 31.37
31
4
0.47
4.39
37.54
31.38
Staple 36.23 36.01 35.26 36.03 35.97
Strength 29.30 29.95 28.84 29.55 29.81
82.10
133
Southwest Quality Summary 2017-Crop Region Southwest
Classing Office Abilene Corpus Christi Lamesa Lubbock Southwest
Bales 91,482 1,697,489 152,276 198,943 2,140,637
Color Grade 31 31 31 31 31
Leaf Grade 3 3 3 3 3
Trash 0.33 0.34 0.31 0.31 0.33
Mike 4.11 4.46 3.94 3.51 4.32
Uniformity 80.14 81.11 79.30 79.81 80.82
Number Of Gins 28 59 35 64 187
Uniformity 81.73 81.73 86.14
Number Of Gins 21 21 17
Far West and American Pima Quality Summary 2017-Crop Region Far West PIMA - Far West
Classing Office Visalia Far West Visalia
Bales 105,646 105,646 84,996
Color Grade 21 21 1
Leaf Grade 2 2 1
Trash 0.20 0.20 0.24
Mike 4.49 4.49 4.20
Staple 37.23 37.23 48.72
Strength 32.70 32.70 43.23
United States Quality Summary 2017-Crop United States Upland United States Pima
4,568,028 86,378
31 1
3 1
0.39 0.24
4.37 4.2
36.61 48.70
30.40 43.22
81.43 86.14
480 18
Source: USDA, AMS, Cotton and Tobacco Program For complete Quality reports click here.
9
Forward Contracting For the 2017 upland cotton crop, growers in the United States had booked about 10 percent of their expected acreage by the end of October this season. This was up from 5 percent booked through the same period last year. Contracting has been most active in the Southeastern and South Central states where about 14 and 15 percent respectively, was under contract by the end of October, compared to 12 percent a year earlier. Southwestern states' growers had forward contracted about 7 percent, compared to only 1 percent the previous year. Western states’ growers had contracted 6 percent of the crop, the same as last year. These estimates were based on the National Agricultural Statistics Board's September Harvested Acreage report and informal surveys made by the USDA, Agricultural Marketing Service, Cotton and Tobacco Program.
Forward contracting of Upland cotton by growers, by states, and United States, final, crop years of 2008-2017 1/
Cotton Crops
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Acreage for harvest 2/
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
1,000 acres
Alabama Florida Georgia North Carolina South Carolina Virginia
10 16 12 10 10 13
3 10 16 4 2 7
15 30 29 29 22 30
41 18 20 52 30 42
32 8 18 14 7 11
30 15 40 33 34 51
23 8 24 22 31 36
7 7 4 9 14 20
6 9 15 12 4 29
6 4 20 10 8 19
428 98 1,280 365 245 83
Southeastern States
11
10
18
32
17
36
24
7
12
14
2,499
Arkansas Louisiana Mississippi Missouri Tennessee
5 68 6 19 1
2 13 * *
17 64 6 9 10
63 57 54 78 69
33 49 21 35 38
18 15 11 29 10
13 12 11 13 11
17 7 3 3 5
9 66 8 2 4
30 34 9 4 7
438 215 625 297 340
South Central States
17
2
17
64
33
17
12
7
12
15
1,915
Oklahoma 3/ Texas
11
3
22
33
5
4
2 6
2 1
* 1
1 8
646 5,900
Southwestern States
11
3
21
31
5
4
5
1
1
7
6,546
Arizona California New Mexico
6 -
-
16 14 -
1 7 -
5 8 -
3 4 1
3 -
11 -
8 4 2
11 -
158 90 55
Western States
3
-
15
3
5
3
2
6
6
6
303
United States
12
4
19
38
14
17
11
4
5
States
10
11,263
1/ Contracting estimates do not include cotton consigned to marketing organizations but do include cotton contracted with marketing organizations. 2/ October 2017, Agricultural Statistics Board, NASS, USDA. 3/ Includes Kansas, 2007-2016 crops. * Less than 0.5 percent.
10
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2017-2018 Sept 29
Oct
Oct
Oct
Oct 27
Nov
Oct 5
6-12
13-19
20-26
Nov 2
3-9
Adjusted world price 1/
60.55
60.04
60.44
59.73
61.01
61.05
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
0.47
0.57
0.61
0.58
0.33
0.33
Fine count adjustment 2017
0.62
0.72
0.76
0.73
0.48
0.48
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 October 27, 2016
Through October 26, 2017
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
3,924,600
-
6,527,100
Exports
127,000
2,089,600
86,800
1,773,400
-
6,014,200
-
8,300,500
New sales
168,800
-
224,500
-
Buy-backs and cancellations
8,500
-
15,000
-
160,400
-
209,500
-
Total export commitments
Net sales
Sales next marketing year 6,000 434,100 47,100 866,000 Net sales of 209,500 running bales for 2017/2018 were down 28 percent from the previous week and 2 percent from the prior 4-week average. Increases were reported for Pakistan (65,400 RB), China (43,500 RB, including decreases of 1,600 RB), Vietnam (40,600 RB, including 500 RB switched from Japan and decreases of 100 RB), Turkey (11,400 RB), and Thailand (10,100 RB, including 1,100 RB switched from Indonesia). Reductions were reported for Mexico (10,500 RB) and Nicaragua (1,100 RB). For 2018/2019, net sales of 47,100 RB were reported for Pakistan (22,000 RB), Indonesia (14,100 RB), and China (11,000 RB). Exports of 86,800 RB were down 8 percent from the previous week and 16 percent from the prior 4-week average. The primary destinations were reported Vietnam (23,600 RB), Mexico (15,200 RB), China (9,400 RB), South Korea (7,400 RB), and Indonesia (7,100 RB). Net sales of Pima totaling 19,100 RB for 2017/2018 were up 18 percent from the previous week, but down 4 percent from the prior 4-week average. Increases were reported for China (9,700 RB), India (3,500 RB), Peru (2,200 RB), and Egypt (1,800 RB). Exports of 3,400 RB were down 31 percent from the previous week and from the prior 4-week average. The primary destinations were India (1,900 RB), Turkey (400 RB), South Korea (400 RB), and Egypt (300 RB). Optional Origin Sales: The current optional origin outstanding balance of 16,500 RB is for Indonesia. Exports for Own Account: New exports for own account totaling 400 RB were reported to Indonesia. Exports of 3,900 RB to Indonesia were applied to new or outstanding sales. The current outstanding balance of 62,300 RB is for Indonesia (41,400 RB), Taiwan (13,100 RB), India (3,800 RB), Vietnam (1,400 RB), South Korea (1,100 RB), Bangladesh (500 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
November 2, 2017
USDA ANNOUNCES SPECIAL IMPORT QUOTA #2 FOR UPLAND COTTON November 2, 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 November 9, 2017, allowing importation of 12,803,341 kilograms (58,805 bales) of upland cotton. Quota number 2 will be established as of November 9, 2017, and will apply to upland cotton purchased not later than February 06, 2018, and entered into the U.S. not later than May 07, 2018. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period June 2017 through August 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.
11
Number of Bales in Certificated Stocks Stocks as of 11-2-2017
Awaiting Review
Non-Rain Grown Cotton
357
0
0
Galveston, TX
10,727
0
0
Greenville, SC
37
0
0
Houston, TX
3,184
0
0
Memphis, TN
13,690
0
0
Total
27,995
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 69.33 70.58 71.08 72.58
SOUTHEAST 41-4 51-5 67.83 64.33 69.83 65.33 70.33 65.83 72.08 66.08 21-2 64.75 65.25 67.00 68.50 69.75 71.00 71.75 71.75
42-4 65.58 67.08 67.08 67.33
31-3 67.33 69.08 69.58 71.83
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 70.00 68.75 70.25 69.00 70.25 70.25
NORTH DELTA 41-4 51-5 65.58 61.08 68.33 62.58 68.83 63.58 70.08 63.83 42-4 61.50 62.50 63.25 66.75 66.75 67.50 67.50 67.50
21-2 66.00 67.00 69.00 69.50 71.50 71.75 72.25 72.50
42-4 63.83 64.58 65.33 65.33
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 64.00 62.25 65.75 64.25 67.50 65.00 68.25 68.25 69.75 68.25 70.50 69.00 71.00 69.50 71.25 70.75
42-4 61.75 63.50 64.50 66.50 67.25 69.00 69.00 69.00
SOUTH DELTA 41-4 51-5 65.58 61.08 68.33 62.58 68.83 63.58 70.08 63.83
31-3 67.33 69.08 69.58 71.83
Staple 26-31 32 33 34 35 36 37 38
21-2
69.23 75.48 78.98 80.48 82.73
42-4 63.83 64.58 65.33 65.58
21-2 62.83 65.08 69.33 69.93
SAN JOAQUIN VALLEY 31-3 41-4
67.73 73.98 77.48 78.73 80.48
65.08 67.08 67.88 67.98 67.98
DESERT SOUTHWEST 31-3 41-4 62.08 57.58 64.33 63.83 67.83 64.08 69.18 64.18
51-5 55.83 56.33 58.08 58.33
32-3
64.58 67.08 67.83 68.33 69.33
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
November 2, 2017
12
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
122.50
130.50
131.75
2
122.25
130.25
131.50
3
114.50
121.50
121.75
1
122.25
130.25
131.50
2
122.00
130.00
131.25
3
114.25
121.25
121.50
4
104.25
111.75
112.00
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on October 11, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
27-29
-1400
1
112.00
119.00
119.25
30-32
-900
2
109.50
116.50
116.75
33-34
-400
3
108.25
115.25
115.50
35 & Above
0
4
99.25
106.25
106.50
5
83.25
89.75
90.00 Strength
6 4
1
93.00
100.00
101.00
2
92.75
99.75
100.25
Range
Diff.
3
92.50
99.50
99.50
35.4 & Below
-1350
4
87.50
94.50
94.50
35.5-36.4
-1100
5
76.25
83.25
83.25
36.5-37.4
-850
37.5 & Above
0
6 5
6
(Grams per Tex)
1 2
72.00
81.25
81.25
3
72.00
80.75
81.25
4
72.00
75.25
75.25
5
71.75
75.00
75.00
Extraneous Matter
6
Level
1
Prep
2
64.25
66.50
66.50
3
64.25
66.50
66.50
1 2
4
64.25
66.50
66.50
Other
5
64.00
66.25
66.25
1 2
Diff. -810 -1095 -715
6 63.50 65.75 65.75 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
November 2, 2017
13
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 14 November 3, 2017 Inside this Issue Market Overview Price Support Spot Quotations
ICE Futures
Average quotations were virtually the same as 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 66.92 cents per pound for the week ending Thursday, November 2, 2017. The weekly average was up from 66.91 last week, but down from 68.14 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 66.61 cents Friday, October 27 to a high of 67.34 cents Thursday, November 2. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended November 2 totaled 38,785 bales. This compares to 23,247 bales reported last week and 23,957 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 117,707 bales compared to 102,902 bales the corresponding week a year ago. The ICE December settlement prices ended the week at 69.08 cents, compared to 68.19 cents last week.
A Index Southeastern
Average Prices 41-4-34 Date
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Textile Mill Report
27-Oct 30-Oct 31-Oct
68.95 69.39 69.13
67.70 68.14 67.88
67.70 68.14 67.88
67.75 68.25 68.25
67.25 67.75 67.75
62.95 63.39 63.13
63.95 64.64 64.38
66.61 67.10 66.91
South Central
1-Nov 2-Nov
68.92 69.83
67.67 68.33
67.67 68.33
67.25 67.75
67.75 68.25
62.92 63.83
64.17 65.08
66.62 67.34
Date
SE
ND
SD
ET-OK
WT
DSW
SJV
7-MKT AVG
Western
27-Oct
70.20
68.95
68.95
69.25
68.75
66.95
72.85
69.41
30-Oct
70.64
69.39
69.39
69.75
69.25
67.39
73.54
69.91
Forward Contracting
31-Oct
70.38
69.13
69.13
69.75
69.25
67.13
73.28
69.72
1-Nov 2-Nov
70.17 71.08
68.92 69.58
68.92 69.58
68.75 69.25
69.25 69.75
66.92 67.83
73.07 73.98
69.43 70.15
Southwestern
Pima Quotations
Average Prices 31-3-35
Date
Dec-17
Mar-18
May-18
Jul-18
Oct-18
Dec-18
Far Eastern A Index 1/ Current
27-Oct 30-Oct 31-Oct 1-Nov 2-Nov
68.20 68.64 68.38 68.17 69.08
68.11 68.58 68.34 68.15 68.97
69.16 69.65 69.42 69.22 70.03
69.89 70.36 70.16 69.96 70.73
69.39 69.88 69.71 69.39 69.98
68.97 69.47 69.30 69.05 69.83
79.10 79.10 79.55 79.25 79.00
Date 27-Oct 30-Oct 31-Oct 1-Nov 2-Nov
SE 1,107 0 526 0 0
ND 0 0 0 0 623
SD 0 0 0 0 2,848
ET-OK 1,322 2,088 4,492 3,839 9,150
WT 1,604 1,665 1,953 2,258 4,726
DSW 0 0 0 0 0
SJV 0 500 84 0 0
PIMA 0 0 0 0 0
Weekly Totals
1,633
623
2,848
20,891
12,206
0
584
0
Futures Settlement
Cotton Market Reports
Subscribe to this report
Subscribe to all Cotton Market reports
Spot Transactions
Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
Spot cotton trading was moderate. Supplies were moderate. Demand was moderate. Producer offerings were light. Average local spot prices were weak. Fieldwork and harvesting activity was briefly interrupted in areas throughout the Southeast as a frontal system brought around one-quarter of an inch of moisture to areas from the Gulf Coast to the eastern Carolinas. Sunny conditions returned early in the week and mostly clear to partly cloudy conditions prevailed. Seasonably cold daytime temperatures in the upper 50s to lower 60s warmed to the mid-70s to lower 80s late week. Harvesting advanced across the region. In Georgia, the aerial application of defoliants was still underway, but cooler temperatures had slowed desiccation of later-planted cotton. Yields of 1,200 to 1,400 pounds per acre were reported on some irrigated acreage; yields of 750 to 1,100 pounds per acre were reported on some dryland fields. In Alabama, some fields remained a couple of weeks behind as the crop progressed and bolls
continued to crack open throughout the state. Harvest activity advanced at a rapid pace in the Carolinas and Virginia as fieldwork remained uninterrupted. According to the National Agricultural Statistics Service’s Crop Progress report released October 30, harvesting was 66 percent completed in Virginia, 54 in South Carolina, 46 in Georgia, and 53 percent completed in Alabama and North Carolina. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41 and better, leaf 4 and better, and staple 34 and longer for second quarter 2018 delivery. No sales were reported. Mill buyers and domestic cotton shippers were busy scheduling deliveries of previously booked 2017-crop cotton. Most mills operated four to seven days. Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted or low grade styles of cotton.
Trading A light volume of color 41 and better, leaf 4 and better, staple 34 and longer, mike mostly 37-49, strength mostly 30-34, and uniformity 79-85 traded at around 73.55 cents per pound, Georgia terms, FOB car/truck (Rule 5, compression charges paid).
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta Spot cotton trading was moderate. Producers were steadily delivering previously contracted cotton. 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. Cold and partly cloudy conditions characterized the weather pattern during the week. Daytime temperatures were in the 50s and 60s. Overnight lows were in the 30s. Damp conditions returned late week and further delayed outdoor activities. Ginning continued without interruption, since most gins had large backlogs of modules on their yards. Producers were harvesting cotton and shredding stalks in fields dry enough to support equipment. Reported yields ranged from 900 to 1,400 pounds per acre. According to the National Agricultural Statistics Service’s Crop Progress report released October 30, harvesting in Arkansas was 82 percent completed, 81 in Missouri, and 65 percent in Tennessee.
South Delta Spot cotton trading was moderate. Producers were steadily delivering previously contracted cotton. Supplies of available cotton were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was slow. No forward contracting was reported. Clear and cold conditions early in the week allowed producers to make good progress harvesting and ginning. A warm, moist air mass brought rain showers and milder temperatures late week. Daytime temperatures were in the 50s to 80s. Overnight lows were in the 20s to 60s. Harvesting activities were briefly delayed throughout the region; producers were concerned about the effect of the wet weather on fiber quality. The cold, wet weather inhibited the effectiveness of defoliants in a few fields. Producers reported yields as high as 1,300 pounds per acre. Ginning progressed slowly, but steadily. Producers were forced to wait until fields dried sufficiently to support equipment to continue harvesting and shredding stalks. According to the National Agricultural Statistics Service’s Crop Progress report released October 30, the crop in Louisiana had been 94 percent harvested, compared to 77 percent in Mississippi.
Trading North Delta A moderate volume of color 41 and better, leaf mostly 5 and better, staple 35 and longer, mike 33-42, strength 29-31, and uniformity 81-84 traded at around 250 off ICE December futures, FOB car/truck (Rule 5, compression charges paid). A light volume of CCC-loan equities traded for around 14.00 cents.
South Delta A light volume of color 31 and better, leaf 3 and better, staple 35 and longer, mike averaging 44.5, strength averaging 30.7, and uniformity averaging 81.0 traded at around 100 points on ICE December futures, FOB car/truck (Rule 5, compression charges paid). A moderate volume of mostly color 42 and better, leaf 5 and better, staple 36 and longer, mike 37-49, strength 27-32, and uniformity 79-82 traded for around 25 points on ICE December futures, same terms as above. A light volume of color 41 and better, leaf 5 and better, staple 35 and 36, mike 48-53, strength 29-33, uniformity 79-82, and 25 percent extraneous matter (bark) traded at around 150 off ICE December futures, same terms as above. A moderate volume of CCC-loan equities sold for 12.00 to 14.00 cents. 3
Pictured above: Cotton modules arriving and awaiting ginning and fields where harvesting has been delayed due to wet fields.
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 heavy. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate to heavy. Interest was best from China, Taiwan, and Turkey. Harvesting neared completion in the Upper Coastal and Blackland Prairie counties. Modules were hauled from fields to gin yards as space became available. Ginning continued. Stalk destruction was underway, but was briefly interrupted by light, intermittent rainfall. Cottonseed prices paid to the producers were reported at $95 to $140 per ton, depending on quality. The Corpus Christi Classing Office continued to operate two shifts and has graded more than 1.6 million samples for producers in south Texas, the Rio Grande Valley, and east Texas. In Kansas and Oklahoma, a cold front early in the reporting period brought cooler conditions, rain, and gusty winds. Harvesting continued uninterrupted. Modules began to accumulate on gin yards and some gins launched operations. Harvesting was 12 percent completed in Kansas, and 32 percent completed in Oklahoma, according to the National Agricultural Statistics Service’s Crop Progress report released on October 30.
West Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate to heavy. Interest was best from China, Taiwan, and Turkey. A cold front moved into the region early in the reporting period with daytime temperature highs in the mid-40s to low 80s. Overnight temperatures were in the low 30s to low 50s. Outside conditions were breezy with gusts near 30 miles per hour, which helped leaves fall from plants. Light rainfall was received on October 31 that slowed harvesting activities. Eastern New Mexico received light snowfall and a wintry mix that briefly halted fieldwork. A warming trend returned that allowed harvesting and ginning to expand. Some gins added night shifts for around-the-clock operations. Modules were transported from fields to gin yards. Three module fires were reported in different locations that caused extensive damage to modules and some cotton still on the stalk, according to local reports. Irrigated acres that have been harvested were watered for winter wheat. The Abilene, Lamesa, and Lubbock Classing Offices added additional shifts to keep pace with the incoming volume of samples to be graded. Cottonseed prices paid to the producers were reported at $125 to $150 per ton.
Trading
East Texas A heavy volume of color 31 and better, leaf 3 and better, staple 36 and longer, mike 40-48, strength 27-32, and uniformity 78-83 sold for 69.00 to 70.00 cents per pound, FOB warehouse (compression charges not paid). A mixed lot containing a light volume of color 54 and better, leaf 4 and better, staple 36 and longer, mike 45-50, strength 28-32, uniformity 80-82, and 50 percent extraneous matter sold for around 60.50 cents, same terms as above. A mixed lot containing a moderate volume of color mostly 52 and better, leaf 4 and better, staple 34 and 35, mike 44-52, strength 28-34, uniformity 80-82, and 50 percent extraneous matter sold for around 59.00 cents, same terms as above.
5
In Oklahoma, a light volume of mostly color 32 and better, leaf 3 and 4, staple 36 and 37, mike 44-48, strength 28-30, and uniformity 81-82 sold for around 68.50 cents, FOB car/truck (compression charges not paid). West Texas A moderate volume of mostly color 31 and 41, leaf 4 and 5, staple 39 and 40, mike 34-41, strength 29-31, uniformity 80-82, and 25 percent extraneous matter sold for around 68.00 cents per pound, FOB car/truck (compression charges not paid). A mixed lot containing a light volume of mostly color 31 and 32, leaf 3 and better, staple 35 and longer, mike 42-47, strength averaging 29.5, and uniformity 76-81 sold for around 66.00 cents, same terms as above. A light volume of mixed lots containing mostly color 42 and 43, leaf 4 and better, staple 34 and longer, mike 33-36, strength 25-27, uniformity 76-78, and 75 percent extraneous matter sold for around 59.00 cents, same terms as above.
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 were light. Demand was moderate. Producers delivered 2017-crop cotton to the co-op, merchant marketing pools, or into the CCC loan program. Average local prices were steady. No domestic mill activity was reported. Foreign mill inquiries were light. Partly cloudy skies and moderate temperatures were prevalent in Arizona. Rainfall was recorded in the period. Harvesting was active in central Arizona. Producers were shredding stalks. In Safford, Arizona, defoliation advanced, but harvesting was slow as producers determined that the crop was not quite ready. Quality results of Arizona cotton were good. Temperatures were mostly in the 60s and 70s for New Mexico and El Paso, Texas. Scattered showers were reported early in the period. Harvesting was slowed. Modules were transported to gin yards. Ginning was initiated. San Joaquin Valley (SJV) Spot cotton trading was slow. Supplies and demand were light. Producers delivered 2017-crop cotton to the co-op, merchant marketing pools, or into the CCC
loan program. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the 80s for most of the week. Rain is in the near-term forecast. Harvesting was on-going. Stalk shredding was active. Ginning continued without interruption. American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. Producers inquired for contracts. No forward contracting or domestic mill activity were reported. Foreign mill inquiries were moderate. According to the Foreign Agricultural Service export sales report, approximately 389,800 bales of 2017-crop AP was committed for the week ending October 26, 2017. Temperatures were in the 70s to 80s in Arizona, California, New Mexico, and El Paso, Texas. Defoliation and harvesting activities were on-going for the region. Arizona producers were pleased with yield results and yields were near average. Ginning was active.
Trading Desert Southwest A heavy volume of 2017-crop Arizona cotton for contract base quality color 21, leaf 2, and staple 36 and longer was contracted at around 150 points on ICE December futures.
San Joaquin Valley A moderate volume of mostly color 31, leaf 2 and better, staple 37 and longer, mike 37-49, strength 32-33, and uniformity 81-83 traded for around 80.00 cents, UD free, FOB warehouse. No trading activity was reported.
American Pima
7
Photos Courtesy of: Maria Townsend
8
2017 Crop Quality Southeast Quality Summary 2017-Crop Region Southeast
Classing Office Florence Macon Memphis Southeast
Bales 293,543 565,927 55,276 914,746
Color Grade 41 31 41 31
Leaf Grade 3 3 4 3
Trash 0.45 0.37 0.53 0.40
Mike 4.60 4.40 4.15 4.45
Staple 36.36 36.63 37.57 36.60
Strength 30.34 29.73 31.01 30.00
Uniformity 81.87 81.74 82.14 81.81
Number of Gins 53 72 14 139
Uniformity 81.87 82.43 81.53
Number Of Gins 40 74 19
South Central Quality Summary 2017-Crop Region South Central
Classing Office Dumas Memphis Rayville
Bales 494,018 701,403 211,578
South Central
1,406,999
Color Grade 31 31 41
Leaf Grade 4 3 4
Trash 0.50 0.46 0.46
Mike 4.39 4.35 4.52
Staple 37.73 37.56 37.04
Strength 31.70 31.16 31.37
31
4
0.47
4.39
37.54
31.38
Staple 36.23 36.01 35.26 36.03 35.97
Strength 29.30 29.95 28.84 29.55 29.81
82.10
133
Southwest Quality Summary 2017-Crop Region Southwest
Classing Office Abilene Corpus Christi Lamesa Lubbock Southwest
Bales 91,482 1,697,489 152,276 198,943 2,140,637
Color Grade 31 31 31 31 31
Leaf Grade 3 3 3 3 3
Trash 0.33 0.34 0.31 0.31 0.33
Mike 4.11 4.46 3.94 3.51 4.32
Uniformity 80.14 81.11 79.30 79.81 80.82
Number Of Gins 28 59 35 64 187
Uniformity 81.73 81.73 86.14
Number Of Gins 21 21 17
Far West and American Pima Quality Summary 2017-Crop Region Far West PIMA - Far West
Classing Office Visalia Far West Visalia
Bales 105,646 105,646 84,996
Color Grade 21 21 1
Leaf Grade 2 2 1
Trash 0.20 0.20 0.24
Mike 4.49 4.49 4.20
Staple 37.23 37.23 48.72
Strength 32.70 32.70 43.23
United States Quality Summary 2017-Crop United States Upland United States Pima
4,568,028 86,378
31 1
3 1
0.39 0.24
4.37 4.2
36.61 48.70
30.40 43.22
81.43 86.14
480 18
Source: USDA, AMS, Cotton and Tobacco Program For complete Quality reports click here.
9
Forward Contracting For the 2017 upland cotton crop, growers in the United States had booked about 10 percent of their expected acreage by the end of October this season. This was up from 5 percent booked through the same period last year. Contracting has been most active in the Southeastern and South Central states where about 14 and 15 percent respectively, was under contract by the end of October, compared to 12 percent a year earlier. Southwestern states' growers had forward contracted about 7 percent, compared to only 1 percent the previous year. Western states’ growers had contracted 6 percent of the crop, the same as last year. These estimates were based on the National Agricultural Statistics Board's September Harvested Acreage report and informal surveys made by the USDA, Agricultural Marketing Service, Cotton and Tobacco Program.
Forward contracting of Upland cotton by growers, by states, and United States, final, crop years of 2008-2017 1/
Cotton Crops
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Acreage for harvest 2/
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
Pct.
1,000 acres
Alabama Florida Georgia North Carolina South Carolina Virginia
10 16 12 10 10 13
3 10 16 4 2 7
15 30 29 29 22 30
41 18 20 52 30 42
32 8 18 14 7 11
30 15 40 33 34 51
23 8 24 22 31 36
7 7 4 9 14 20
6 9 15 12 4 29
6 4 20 10 8 19
428 98 1,280 365 245 83
Southeastern States
11
10
18
32
17
36
24
7
12
14
2,499
Arkansas Louisiana Mississippi Missouri Tennessee
5 68 6 19 1
2 13 * *
17 64 6 9 10
63 57 54 78 69
33 49 21 35 38
18 15 11 29 10
13 12 11 13 11
17 7 3 3 5
9 66 8 2 4
30 34 9 4 7
438 215 625 297 340
South Central States
17
2
17
64
33
17
12
7
12
15
1,915
Oklahoma 3/ Texas
11
3
22
33
5
4
2 6
2 1
* 1
1 8
646 5,900
Southwestern States
11
3
21
31
5
4
5
1
1
7
6,546
Arizona California New Mexico
6 -
-
16 14 -
1 7 -
5 8 -
3 4 1
3 -
11 -
8 4 2
11 -
158 90 55
Western States
3
-
15
3
5
3
2
6
6
6
303
United States
12
4
19
38
14
17
11
4
5
States
10
11,263
1/ Contracting estimates do not include cotton consigned to marketing organizations but do include cotton contracted with marketing organizations. 2/ October 2017, Agricultural Statistics Board, NASS, USDA. 3/ Includes Kansas, 2007-2016 crops. * Less than 0.5 percent.
10
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2017-2018 Sept 29
Oct
Oct
Oct
Oct 27
Nov
Oct 5
6-12
13-19
20-26
Nov 2
3-9
Adjusted world price 1/
60.55
60.04
60.44
59.73
61.01
61.05
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
0.47
0.57
0.61
0.58
0.33
0.33
Fine count adjustment 2017
0.62
0.72
0.76
0.73
0.48
0.48
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 October 27, 2016
Through October 26, 2017
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
3,924,600
-
6,527,100
Exports
127,000
2,089,600
86,800
1,773,400
-
6,014,200
-
8,300,500
New sales
168,800
-
224,500
-
Buy-backs and cancellations
8,500
-
15,000
-
160,400
-
209,500
-
Total export commitments
Net sales
Sales next marketing year 6,000 434,100 47,100 866,000 Net sales of 209,500 running bales for 2017/2018 were down 28 percent from the previous week and 2 percent from the prior 4-week average. Increases were reported for Pakistan (65,400 RB), China (43,500 RB, including decreases of 1,600 RB), Vietnam (40,600 RB, including 500 RB switched from Japan and decreases of 100 RB), Turkey (11,400 RB), and Thailand (10,100 RB, including 1,100 RB switched from Indonesia). Reductions were reported for Mexico (10,500 RB) and Nicaragua (1,100 RB). For 2018/2019, net sales of 47,100 RB were reported for Pakistan (22,000 RB), Indonesia (14,100 RB), and China (11,000 RB). Exports of 86,800 RB were down 8 percent from the previous week and 16 percent from the prior 4-week average. The primary destinations were reported Vietnam (23,600 RB), Mexico (15,200 RB), China (9,400 RB), South Korea (7,400 RB), and Indonesia (7,100 RB). Net sales of Pima totaling 19,100 RB for 2017/2018 were up 18 percent from the previous week, but down 4 percent from the prior 4-week average. Increases were reported for China (9,700 RB), India (3,500 RB), Peru (2,200 RB), and Egypt (1,800 RB). Exports of 3,400 RB were down 31 percent from the previous week and from the prior 4-week average. The primary destinations were India (1,900 RB), Turkey (400 RB), South Korea (400 RB), and Egypt (300 RB). Optional Origin Sales: The current optional origin outstanding balance of 16,500 RB is for Indonesia. Exports for Own Account: New exports for own account totaling 400 RB were reported to Indonesia. Exports of 3,900 RB to Indonesia were applied to new or outstanding sales. The current outstanding balance of 62,300 RB is for Indonesia (41,400 RB), Taiwan (13,100 RB), India (3,800 RB), Vietnam (1,400 RB), South Korea (1,100 RB), Bangladesh (500 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
November 2, 2017
USDA ANNOUNCES SPECIAL IMPORT QUOTA #2 FOR UPLAND COTTON November 2, 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 November 9, 2017, allowing importation of 12,803,341 kilograms (58,805 bales) of upland cotton. Quota number 2 will be established as of November 9, 2017, and will apply to upland cotton purchased not later than February 06, 2018, and entered into the U.S. not later than May 07, 2018. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period June 2017 through August 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.
11
Number of Bales in Certificated Stocks Stocks as of 11-2-2017
Awaiting Review
Non-Rain Grown Cotton
357
0
0
Galveston, TX
10,727
0
0
Greenville, SC
37
0
0
Houston, TX
3,184
0
0
Memphis, TN
13,690
0
0
Total
27,995
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 69.33 70.58 71.08 72.58
SOUTHEAST 41-4 51-5 67.83 64.33 69.83 65.33 70.33 65.83 72.08 66.08 21-2 64.75 65.25 67.00 68.50 69.75 71.00 71.75 71.75
42-4 65.58 67.08 67.08 67.33
31-3 67.33 69.08 69.58 71.83
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 70.00 68.75 70.25 69.00 70.25 70.25
NORTH DELTA 41-4 51-5 65.58 61.08 68.33 62.58 68.83 63.58 70.08 63.83 42-4 61.50 62.50 63.25 66.75 66.75 67.50 67.50 67.50
21-2 66.00 67.00 69.00 69.50 71.50 71.75 72.25 72.50
42-4 63.83 64.58 65.33 65.33
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 64.00 62.25 65.75 64.25 67.50 65.00 68.25 68.25 69.75 68.25 70.50 69.00 71.00 69.50 71.25 70.75
42-4 61.75 63.50 64.50 66.50 67.25 69.00 69.00 69.00
SOUTH DELTA 41-4 51-5 65.58 61.08 68.33 62.58 68.83 63.58 70.08 63.83
31-3 67.33 69.08 69.58 71.83
Staple 26-31 32 33 34 35 36 37 38
21-2
69.23 75.48 78.98 80.48 82.73
42-4 63.83 64.58 65.33 65.58
21-2 62.83 65.08 69.33 69.93
SAN JOAQUIN VALLEY 31-3 41-4
67.73 73.98 77.48 78.73 80.48
65.08 67.08 67.88 67.98 67.98
DESERT SOUTHWEST 31-3 41-4 62.08 57.58 64.33 63.83 67.83 64.08 69.18 64.18
51-5 55.83 56.33 58.08 58.33
32-3
64.58 67.08 67.83 68.33 69.33
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
November 2, 2017
12
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
122.50
130.50
131.75
2
122.25
130.25
131.50
3
114.50
121.50
121.75
1
122.25
130.25
131.50
2
122.00
130.00
131.25
3
114.25
121.25
121.50
4
104.25
111.75
112.00
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on October 11, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
27-29
-1400
1
112.00
119.00
119.25
30-32
-900
2
109.50
116.50
116.75
33-34
-400
3
108.25
115.25
115.50
35 & Above
0
4
99.25
106.25
106.50
5
83.25
89.75
90.00 Strength
6 4
1
93.00
100.00
101.00
2
92.75
99.75
100.25
Range
Diff.
3
92.50
99.50
99.50
35.4 & Below
-1350
4
87.50
94.50
94.50
35.5-36.4
-1100
5
76.25
83.25
83.25
36.5-37.4
-850
37.5 & Above
0
6 5
6
(Grams per Tex)
1 2
72.00
81.25
81.25
3
72.00
80.75
81.25
4
72.00
75.25
75.25
5
71.75
75.00
75.00
Extraneous Matter
6
Level
1
Prep
2
64.25
66.50
66.50
3
64.25
66.50
66.50
1 2
4
64.25
66.50
66.50
Other
5
64.00
66.25
66.25
1 2
Diff. -810 -1095 -715
6 63.50 65.75 65.75 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
November 2, 2017
13
