Weekly Cotton Market Review
Weekly Cotton Market Review
Mp_cn812
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133
No report will be published on December 29. Publication will resume on January 5, 2018.
Vol. 99 No. 20 December 15, 2017 Inside this Issue Market Overview Price Support Spot Quotations
ICE Futures A Index Southeastern
Average quotations were 68 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 71.72 cents per pound for the week ending Thursday, December 14, 2017. The weekly average was up from 71.04 last week and from 70.55 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 70.90 cents Tuesday, December 12 to a high of 73.13 cents Thursday, December 14. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended December 14 totaled 107,687 bales. This compares to 81,415 bales reported last week and 79,957 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 624,027 bales compared to 495,618 bales the corresponding week a year ago. The ICE March settlement prices ended the week at 75.33 cents, compared to 74.23 cents last week.
Textile Mill Report South Central Southwestern Western Pima Quotations
Cotton Ginnings Cotton and Wool Crop Production Cotton Market Reports
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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 good. Producer offerings were moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Fieldwork was interrupted early in the period as a cold front brought a mix of snow and ice to most of Alabama and portions of north Georgia over the weekend. Snowfall accumulations totaled from one-half of an inch to several inches in areas across Alabama, and heavier accumulations in excess of 10 inches were observed in areas of north Georgia. Portions of the Florida panhandle and areas of central Georgia also received a light dusting of snow from the winter storm. Mostly sunny to partly cloudy conditions prevailed across the lower southeast during the remainder of the week with seasonably cold daytime high temperatures observed in the mid-40s to low 60s. Producers attempted to complete harvesting and fieldwork where soils were firm enough to support equipment ahead of additional wet weather forecast in the near term. Similar winter weather was observed across western North Carolina and Virginia, but eastern areas of the upper Southeast received around one-half of an inch to one inch of
rainfall from scattered showers early in the period. Daytime high temperatures were observed in the mid-40s to lower 50s throughout the remainder week and fieldwork neared completion in fields dry enough to support equipment. Several gins had gone on gin days in North Carolina as they waited for additional modules to accumulate on gin yards. Elsewhere ginning continued uninterrupted throughout the Southeast. Textile Mill Domestic mill buyers purchased a moderate volume of color 41, leaf 3, and staple 35 and 36 for second quarter 2018 delivery. Mill buyers also purchased a moderate volume of color 42, leaf 5, and staple 35 for April/May 2018 delivery. Some mills made initial inquiries for 2018-crop cotton, color 41, leaf 4, and staple 34 for fourth quarter 2018 delivery; no sales were reported. Most mills operated five to seven days. Demand through export channels was moderate. Turkish mill buyers purchased a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 35 for nearby shipment.
Trading
A moderate volume of color 21-41, leaf 2 and 3, staple 33-36, mike 43-52, strength 26-28, and uniformity 80-82 sold for around 76.50 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). A moderate volume of color 31 and 41, leaf 3 and 4, staple 35-38, mike 43-49, strength 29-32, and uniformity 80-83 sold for around 75.30 cents per pound, FOB car/truck (Rule 5, compression charges paid).
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South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts. Seasonably cold weather prevailed during the week. Daytime temperatures were in the 50s to 70s. Overnight lows were in the 20s and 40s. No precipitation was reported. Ginning was winding down throughout the region. The Dumas Classing Office eliminated 1 of 3 shifts, while the Memphis Classing Office continued to operate 3 shifts. A number of gins were expected to complete annual operations by Christmas; several large gins may operate into the new year. According to the National Agricultural Statistics Service, as of December 1, cotton production in Arkansas is forecast at 1.06 million bales, up 220,000 bales from last year. Yield is expected to average 1,162 pounds per harvest acre, up 87 pounds from 2016. Production in Missouri is estimated at 725,000 bales, up 159,000 from 2016; yield per acre is estimated at 1,172, up 151 pounds. Tennessee is expected to harvest 730,000 bales, up 155,000 from 2016; yield per acre is estimated at 1,031 pounds, down 45 pounds from last year. According to the U.S. Drought Monitor, areas of moderate-to-extreme drought expanded in most of the cotton-producing areas in Arkansas and Missouri.
South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts. Clear and cold conditions prevailed during the week. Daytime temperatures were in the 50s. Overnight lows were in the 20s to 30s. Harvesting activities were completed for the season. A few larger gins were still pressing cotton throughout the region. A few gins were expected to continue working until early January. According to the National Agricultural Statistics Service, as of December 1, cotton production is forecast at 420,000 bales in Louisiana, up 152,000 bales from 2016. Yield is expected to average 938 pounds per harvest acre, down 1 pound from 2016. In Mississippi, cotton production is forecast at 1.41 million bales, up 329,000 bales from 2016. Yield is expected to average 1,083 pounds, down 126 pounds from last year. According to the U.S. Drought Monitor, areas of moderate-to-severe drought expanded in most of the cotton-producing areas in Louisiana and Mississippi. Rainfall totals in the past 90 days are around 20 percent of normal. Rain is in the forecast for the week to come. Producers were hoping for an extended period of wet weather to restore soil moisture prior to spring planting.
Trading
North Delta A light volume of mixed lots, color mostly 51 and better, leaf 4 and better, staple 36 and 37, mike 37-47, strength 28-32, and uniformity 80-83 traded at around 76.00 cents per pound, FOB car/truck (Rule 5, compression charges paid). South Delta No trading activity was reported.
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Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
East Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was active. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. In south Texas, ginning progressed under sunny conditions with daytime temperatures in the upper 60s to low 70s, with nighttime lows in the upper 40s to low 50s. Rainfall is in the forecast. The Corpus Christi Classing Office is operating 1 shift to keep pace with the reduced amount of sample receipts. More than 10 gins continued pressing services in this territory. Ginning advanced in the Blackland Prairies with daytime temperatures in the low 60s to low 80s. Fertilizer was applied and fields were tilled to help control weeds. In Kansas and Oklahoma, temperature highs were mostly in the 50s to 60s, with nighttime lows around freezing. Harvesting made good progress in Kansas under partly cloudy outside conditions. According to local reports, harvesting is around 70 percent completed and ginning is approximately 20 percent completed. Gins operated 2 shifts for 12-hours each and found it difficult to keep pace with the exceptionally large amount of modules. Industry experts reported that dry conditions, among other factors, attributed to several module fires. According to the National Agricultural Statistics Service’s (NASS) Crop Production report released on December 12, production is forecast at 185,000 bales. That is up 161 percent compared to last year. Harvested acres were reported at 91,000 acres and increased 194 percent from the previous year. Yields are forecast at 976 pounds per acre,
down 123 pounds from last year. In Oklahoma, NASS reported 78 percent higher production than 2016 with 1.10 million bales. Yields averaged lower at 951 pounds per acre compared with 1,021 pounds per acre last year. Acreage harvested is forecast at 555,000 acres and 91 percent higher than last year. West Texas Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was very good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. According to the National Agricultural Statistics Service’s Crop Production report released on December 12, production in all of Texas is estimated at 9.50 million bales, compared to 8.1 million last season. Yields averaged 786 pounds per acre compared with 748 pounds per acre last year. Acreage harvested is estimated at 5.80 million acres compared with 5.2 million acres in 2016. Final harvesting made good progress under mostly sunny conditions with daytime temperature highs in the mid-50s to low 70s and overnight lows were mostly around freezing. Modules dotted the countryside and accumulated at gin yards. Yields remained variable with some fields producing up to 5 bales per acre as expected, and other fields falling short of production estimates. Module fires have been more frequent this season, mainly due to dry conditions and finer fiber, according to local industry reports. The region’s last significant rainfall was 35 to 90 days ago, depending on location.
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Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
Trading East Texas
In Texas, a mixed lot containing a light volume of mostly color 42 and better, leaf 4 and better, staple 34 and longer, mike 46-49, strength 28-30, and uniformity 80-83 sold for around 67.75 cents per pound, FOB warehouse (compression charges not paid). A mixed lot containing a light volume of mostly color 42 and better, leaf 2 and 3, staple 32 and longer, mike 42-51, strength 26-31, and uniformity 77-82 sold for around 63.00 cents same terms as above. In Oklahoma, a moderate volume of mostly color 21 and 31, leaf 3 and better, staple 37 and longer, mike 46-48, strength 30-31, and uniformity 82-83 sold for around 74.25 cents, FOB car/truck (compression charges not paid). A light volume of color 34 and better, leaf 5 and better, staple 36 and longer, mike averaging 28.1, strength averaging 29.9, uniformity averaging 79.3, and 75 percent extraneous matter sold for around 55.00 cents, same terms as above. A heavy volume of CCC-loan equities traded for 17.50 to 17.75 cents. West Texas
A heavy volume of color 31 and better, leaf 3 and better, staple 35, mike 35-49, strength 25-33, and uniformity 77-81 sold for around 72.25 cents per pound, FOB car/truck (compression charges not paid). A mixed lot containing a heavy volume of mostly color 31 and better, leaf 3 and better, staple 34 and longer, mike 39-43, strength 25-29, and uniformity 77-80 sold for around 71.00 cents, same terms as above. A light volume of mostly color 11 and 21, leaf 4 and better, staple 36 and 37, mike 29-34, strength 30-32, and uniformity 79-81 sold for around 64.75 cents, same terms as above.
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Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Desert Southwest (DSW) Spot cotton trading was slow. Supplies were light. Demand was moderate. Producers delivered cotton to the coop, merchant marketing pools, or into the CCC loan program. Average local prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. Pleasant, mild conditions continued in southern and central Arizona. No moisture was recorded in Arizona, New Mexico, and El Paso, Texas in the period. Harvesting neared completion in New Mexico and El Paso, Texas. Ginning continued uninterrupted. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Producers delivered 2017-crop cotton to the coop, merchant marketing pools, or into the CCC loan program. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. Shipper’s price ideas were firm for saw and roller-ginned Acala. Hazy conditions prevailed, due to wildfires burning in southern California. No moisture was recorded in the period. Shippers were busy trucking cotton to ports. All highways were open to ports, no delays. Ginning continued. Some gins completed
pressing operations for the season. Fieldwork was active. American Pima (AP) Spot cotton trading was slow. Supplies and demand were moderate. Average local spot prices were steady. No forward contracting was reported. Domestic mill inquiries were active. Foreign mill inquiries were moderate and for prompt shipment. Interest was best from China. Some shippers continued to limit offerings and sales. Shipper’s prices were higher. According to the Foreign Agricultural Service export sales report, approximately 444,600 bales of 2017-crop AP was committed for the week ending December 7, 2017. Sale commitments of 2018-crop cotton were reported at 35,400 bales compared to no bales committed at this same time last year. Temperatures were mostly in the 60s and 70s in the region. Overnight lows were chilly with temperatures in the high 30s to low 50s. Mostly hazy conditions were observed in the San Joaquin Valley of California, due to the wildfires raging in southern California. No moisture was recorded in the period. Ginning advanced at a steady pace in the far west. A couple of California gins completed pressing operations for the season.
Trading Desert Southwest A light volume of mostly color 21, leaf 3 and better, staple 35-37, mike averaging 29.7, strength averaging 29.3, and uniformity averaging 80.1 traded for around 62.50 cents per pound, uncompressed, FOB warehouse. No trading activity was reported.
San Joaquin Valley
American Pima A light volume of Texas Pima color 3 and better, leaf 2 and 3, and mostly staple 48 and longer traded for around 137.50 cents per pound, FOB car/truck (compression charges not paid).
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Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Cutting-edge Technology
Technological advancements, such as this innovative equipment for handling round modules, are being developed to facilitate the proper removal of the plastic covering.
This system positions the module such that the protective wrapper is precisely cut in the recommended location, to eliminate small scraps of plastic.
Photos courtesy of Maria Townsend
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Cotton Ginnings
For complete Cotton Ginnings report click here.
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Cotton and Wool The following information was excerpted from the Cotton &Wool Outlook report, released on December 14, 2017 The latest U.S. Department of Agriculture (USDA) projections for 2017/18 indicate that world cotton trade is forecast to expand 3 percent from last season and reach a 4-year high. Global trade is projected at 38.5 million bales in 2017/18, 1.2 million bales above last season. However, 2017/18 world cotton trade remains 17 percent below 2012/13’s record of 46.5 million bales. The rising trade outlook is largely attributable to the above-average growth expected in world cotton mill use in 2017/18. Most of the world’s primary spinners of cotton rely on imports, and the leading importers this season are considered nonproducing countries. As a result, this import demand is satisfied by producing and exporting countries (fig. 1). In 2017/18, export prospects for the United States are once again expected to remain strong, while those from Brazil and Australia are forecast to increase as they harvest larger high-quality crops; these three countries are projected to attain a combined 60 percent of global trade. In contrast, cotton exports from India and Uzbekistan are forecast to decline again in 2017/18.
For complete Cotton and Wool report click here.
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Crop Production The following information was excerpted from the Cotton Production report, released on December 12, 2017 All cotton production is forecast at 21.4 million 480-pound bales, up less than 1 percent from November and up 25 percent from last year. Yield is expected to average 902 pounds per harvested acre, up 2 pounds from last month and up 35 pounds from last year. If realized, the cotton yield forecast for the Nation will be the highest yield on record. Upland cotton production is forecast at 20.7 million 480-pound bales, up 25 percent from 2016. Pima cotton production, forecast at 727,000 bales, was carried forward from an earlier forecast.
For complete Crop Production report click here. 10
Supply and Demand The following information was excerpted from the World Agricultural Supply and Demand Estimates report released on December 12, 2017 This month’s 2017/18 U.S. cotton forecasts include higher exports, slightly higher production, and lower ending stocks. Production is raised 63,000 bales as increases in the Southwest are largely offset by decreases in other regions. Domestic mill use is unchanged, but exports are raised 300,000 bales due to reduced production in other countries. Ending stocks are now projected at 5.8 million bales, 200,000 lower than forecast in November, but more than double their 2016/17 level. The forecast range for the marketing year average price received by producers is raised 3 cents at each end, to a midpoint of 66 cents. The global 2017/18 cotton forecasts include lower beginning stocks, production, and ending stocks. Global production is reduced 1.5 million bales as reductions for Pakistan, India, Burkina Faso, Argentina, and Australia are only partly offset by increases in Turkey and Central Asia. A 1.0-million-bale decline in India’s estimated beginning stocks results in a similar decline in global 2017/18 beginning stocks. The revision in India’s beginning stocks reflects higher estimated consumption since 2015/16, and both India’s and world 2017/18 consumption is forecast higher this month—a 335,000-bale increase in the global forecast. World consumption is forecast to grow at a 4.2 percent annual rate in 2017/18, more than double its long-run level. Projected world ending stocks are 2.9 million bales lower this month than in November, and at 87.9 million bales are now forecast marginally higher than the year before.
For complete WASDE report click here.
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2017 Crop Quality Southeast Quality Summary 2017-Crop Region Southeast
Classing Office Florence Macon Memphis Southeast
Bales 1,084,538 2,107,463 199,030 3,391,031
Color Grade 41 31 41 31
Leaf Grade 3 3 4 3
Trash 0.46 0.37 0.54 0.41
Mike 4.55 4.42 4.17 4.45
Staple 36.55 36.69 37.60 36.70
Strength 30.39 29.45 30.27 29.80
Uniformity 81.91 81.88 82.08 81.90
Number of Gins 53 79 14 146
Uniformity 81.90 82.28 81.48
Number Of Gins 41 76 19
South Central Quality Summary 2017-Crop Region South Central
Classing Office Dumas Memphis Rayville
Bales 1,174,877 2,185,534 412,420
Color Grade 31 31 31
Leaf Grade 4 4 3
Trash 0.49 0.50 0.43
Mike 4.37 4.34 4.53
Staple 37.87 37.69 37.10
Strength 31.71 30.58 31.34
South Central
3,772,831
31
4
0.49
4.37
37.68
31.01
Staple 35.91 36.03 35.41 36.23 35.99
Strength 29.51 30.01 29.25 29.73 29.74
82.07
136
Southwest Quality Summary 2017-Crop Region Southwest
Classing Office Abilene Corpus Christi Lamesa Lubbock Southwest
Bales 662,379 2,152,510 919,861 1,897,751 5,640,763
Color Grade 21 31 21 21 21
Leaf Grade 2 3 2 3 3
Trash 0.28 0.34 0.26 0.28 0.30
Mike 4.01 4.48 3.80 3.31 3.92
Uniformity 80.07 81.13 79.45 79.78 80.28
Number Of Gins 42 59 39 72 213
Uniformity 81.33 81.33 86.3 86.28
Number Of Gins 35 35 2 23
Far West and American Pima Quality Summary 2017-Crop Classing Office Region Far West Visalia Far West PIMA - Southwest Visalia PIMA - Far West Visalia
Bales 363,558 363,558 14,291 372,504
Color Grade 21 21 1 1
Leaf Grade 2 2 2 2
Trash 0.20 0.20 0.30 0.26
Mike 4.40 4.40 4.21 4.16
Staple 37.35 37.35 47.99 49.24
Strength 32.77 32.77 42.82 43.77
United States Quality Summary 2017-Crop United States Upland United States Pima
13,168,183 386,795
31 1
3 2
0.38 0.26
4.2 4.16
36.69 49.20
30.20 43.74
81.24 86.28
530 25
Source: USDA, AMS, Cotton and Tobacco Program
For complete Quality reports click here.
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World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2017-2018 Nov
Nov
Nov
Dec
Dec
Dec
10-16
17-23
24-30
1-7
8-14
15-21
Adjusted world price 1/
61.38
61.37
62.59
64.22
65.03
65.95
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
0.36
0.39
0.47
0.55
0.48
0.45
Fine count adjustment 2017
0.51
0.54
0.62
0.70
0.63
0.60
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 December 8, 2016
Through December 7, 2017
Week
Mkt. Year
Outstanding sales
-
Exports
218,400
Total export commitments New sales Buy-backs and cancellations Net sales Sales next marketing year
Week
Mkt. Year
4,537,500
-
7,489,300
3,034,000
166,600
2,603,000
-
7,571,500
-
10,092,300
375,300
-
268,600
-
63,700
-
8,900
311,700
-
259,700
-
66,000
560,700
36,000
1,079,600
Net sales of 259,700 running bales for 2017/2018 were up 39 percent from the previous week, but down 22 percent from the prior 4-week average. Increases were reported for Turkey (63,300 RB), Vietnam (59,500 RB, including 1,100 RB switched from South Korea, 1,100 RB switched from Thailand, 900 RB switched from Japan, and 400 RB switched from China), Pakistan (43,900 RB), and Bangladesh (21,800 RB, including 100 RB switched from Mexico). Reductions were reported for Venezuela (2,200 RB) and Japan (1,300 RB). For 2018/2019, net sales of 36,000 RB were reported for Thailand (18,900 RB), China (8,800 RB), Mexico (6,100 RB), and Peru (2,200 RB). Exports of 166,600 RB were down 33 percent from the previous week, but up 24 percent from the prior 4-week average. The primary destinations were Vietnam (45,100 RB), China (33,200 RB), Mexico (21,500 RB), Indonesia (16,300 RB), and South Korea (11,800 RB). Net sales of Pima totaling 10,100 RB for 2017/2018 were down noticeably from the previous week, but up 29 percent from the prior 4-week average. Increases were reported for Peru (3,300 RB), India (2,700 RB), Hong Kong (2,200 RB), and South Korea (1,300 RB). Reductions of 100 RB were reported for Honduras. Exports of 13,700 RB were down 42 percent from the previous week and 3 percent from the prior 4-week average. The primary destinations were China (4,500 RB), Pakistan (2,800 RB), India (2,100 RB), and Peru (2,000 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 8,700 RB were reported to Vietnam (3,900 RB), Indonesia (3,700 RB), and South Korea (1,100 RB). Exports to Vietnam (3,100 RB), South Korea (1,100 RB), and Indonesia (600 RB), were applied to new or outstanding sales. Decreases totaling 400 RB were reported for China. The current outstanding balance of 64,100 RB is for Indonesia (37,900 RB), Taiwan (11,600 RB), Vietnam (8,700 RB), India (3,800 RB), China (1,500 RB), Bangladesh (500 RB), and Pakistan (100 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
December 14, 2017
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Number of Bales in Certificated Stocks Stocks as of 12-14-2017
Awaiting Review
Non-Rain Grown Cotton
357
0
0
Galveston, TX
21,787
0
0
Greenville, SC
37
0
0
Houston, TX
7,025
0
0
Memphis, TN
18,422
0
0
Total
47,628
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 74.73 76.48 76.98 78.48
SOUTHEAST 41-4 51-5 73.23 69.73 75.23 70.73 76.23 71.23 77.48 71.48 21-2 69.00 69.50 71.25 73.50 74.75 76.25 76.50 76.75
42-4 70.98 72.48 72.48 72.73
31-3 72.48 74.23 75.23 77.48
EAST TEXAS-OKLAHOMA 31-3 41-4 68.25 66.75 69.00 68.25 71.00 69.25 72.50 72.00 73.75 72.00 75.00 73.00 75.50 73.25 75.75 75.75
NORTH DELTA 41-4 51-5 70.73 66.23 73.48 68.23 73.48 68.73 74.73 68.98 42-4 65.75 66.75 67.50 71.00 71.00 71.75 71.75 71.75
21-2 69.75 70.75 72.75 73.25 75.25 75.75 76.25 76.50
42-4 68.98 69.73 70.48 70.48
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 67.75 66.00 69.50 68.00 71.50 68.75 72.25 72.00 74.00 72.00 75.00 73.00 75.50 73.25 75.75 75.75
42-4 65.50 67.25 68.25 70.25 71.00 72.75 72.75 72.75
SOUTH DELTA 41-4 51-5 70.73 66.23 73.48 68.23 73.48 68.73 74.73 68.98
31-3 72.48 74.23 75.23 77.48
Staple 26-31 32 33 34 35 36 37 38
21-2
74.38 80.63 84.13 85.63 87.88
42-4 68.98 69.73 70.48 70.73
21-2 67.98 70.23 74.48 75.33
SAN JOAQUIN VALLEY 31-3 41-4
72.88 79.13 82.63 83.88 85.63
70.23 72.23 73.03 73.13 73.13
DESERT SOUTHWEST 31-3 41-4 67.23 62.73 69.48 68.98 72.98 69.23 74.58 69.33
51-5 60.98 61.48 63.23 63.48
32-3
69.73 72.23 72.98 73.48 74.48
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 -1050 -975 -750 -475 -350 0 0 0 -225 -350
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 -1050 -975 -750 -475 -350 0 0 0 -225 -350
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. -1100 -979 -832 -482 -271 0 14 0 -271 -396 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
December 14, 2017
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American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color
Leaf
Staple 44
46
48
1
1
137.50
145.50
147.25
2
137.25
145.25
147.00
3
129.50
136.50
137.25
1
137.25
145.25
147.00
2
137.00
145.00
146.75
3
129.25
136.25
137.00
4
119.25
126.75
127.50
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on December 7, 2017.
5 6 2
5 6 3
Mike Range
Diff.
26 & Below
-1900
27-29
-1400
30-32
-900
1
127.00
134.00
134.75
2
124.50
131.50
132.25
33-34
-400
3
123.25
130.25
131.00
35 & Above
0
4
114.25
121.25
122.00
5
98.25
104.75
105.50 Strength
6 4
1
108.00
115.00
116.50
2
107.75
114.75
115.75
Range
Diff.
3
107.50
114.50
115.00
35.4 & Below
-1350
4
102.50
109.50
110.00
35.5-36.4
-1100
5
91.25
98.25
98.75
36.5-37.4
-850
37.5 & Above
0
6 5
1 2
87.00
96.25
96.75
3
87.00
95.75
96.75
4
87.00
90.25
90.75
5
86.75
90.00
90.50
6 6
(Grams per Tex)
Extraneous Matter Level
Diff.
Prep
1 2
79.25
81.50
82.00
3
79.25
81.50
82.00
1 2
4
79.25
81.50
82.00
Other
5
79.00
81.25
81.75
1 2
-810 -1095 -715
6 78.50 80.75 81.25 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
December 14, 2017
15
Mp_cn812
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133
No report will be published on December 29. Publication will resume on January 5, 2018.
Vol. 99 No. 20 December 15, 2017 Inside this Issue Market Overview Price Support Spot Quotations
ICE Futures A Index Southeastern
Average quotations were 68 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 71.72 cents per pound for the week ending Thursday, December 14, 2017. The weekly average was up from 71.04 last week and from 70.55 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 70.90 cents Tuesday, December 12 to a high of 73.13 cents Thursday, December 14. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended December 14 totaled 107,687 bales. This compares to 81,415 bales reported last week and 79,957 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 624,027 bales compared to 495,618 bales the corresponding week a year ago. The ICE March settlement prices ended the week at 75.33 cents, compared to 74.23 cents last week.
Textile Mill Report South Central Southwestern Western Pima Quotations
Cotton Ginnings Cotton and Wool Crop Production Cotton Market Reports
Subscribe to this report Subscribe to all Cotton Market reports
Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
Spot cotton trading was moderate. Supplies were moderate. Demand was good. Producer offerings were moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Fieldwork was interrupted early in the period as a cold front brought a mix of snow and ice to most of Alabama and portions of north Georgia over the weekend. Snowfall accumulations totaled from one-half of an inch to several inches in areas across Alabama, and heavier accumulations in excess of 10 inches were observed in areas of north Georgia. Portions of the Florida panhandle and areas of central Georgia also received a light dusting of snow from the winter storm. Mostly sunny to partly cloudy conditions prevailed across the lower southeast during the remainder of the week with seasonably cold daytime high temperatures observed in the mid-40s to low 60s. Producers attempted to complete harvesting and fieldwork where soils were firm enough to support equipment ahead of additional wet weather forecast in the near term. Similar winter weather was observed across western North Carolina and Virginia, but eastern areas of the upper Southeast received around one-half of an inch to one inch of
rainfall from scattered showers early in the period. Daytime high temperatures were observed in the mid-40s to lower 50s throughout the remainder week and fieldwork neared completion in fields dry enough to support equipment. Several gins had gone on gin days in North Carolina as they waited for additional modules to accumulate on gin yards. Elsewhere ginning continued uninterrupted throughout the Southeast. Textile Mill Domestic mill buyers purchased a moderate volume of color 41, leaf 3, and staple 35 and 36 for second quarter 2018 delivery. Mill buyers also purchased a moderate volume of color 42, leaf 5, and staple 35 for April/May 2018 delivery. Some mills made initial inquiries for 2018-crop cotton, color 41, leaf 4, and staple 34 for fourth quarter 2018 delivery; no sales were reported. Most mills operated five to seven days. Demand through export channels was moderate. Turkish mill buyers purchased a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 35 for nearby shipment.
Trading
A moderate volume of color 21-41, leaf 2 and 3, staple 33-36, mike 43-52, strength 26-28, and uniformity 80-82 sold for around 76.50 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). A moderate volume of color 31 and 41, leaf 3 and 4, staple 35-38, mike 43-49, strength 29-32, and uniformity 80-83 sold for around 75.30 cents per pound, FOB car/truck (Rule 5, compression charges paid).
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
North Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts. Seasonably cold weather prevailed during the week. Daytime temperatures were in the 50s to 70s. Overnight lows were in the 20s and 40s. No precipitation was reported. Ginning was winding down throughout the region. The Dumas Classing Office eliminated 1 of 3 shifts, while the Memphis Classing Office continued to operate 3 shifts. A number of gins were expected to complete annual operations by Christmas; several large gins may operate into the new year. According to the National Agricultural Statistics Service, as of December 1, cotton production in Arkansas is forecast at 1.06 million bales, up 220,000 bales from last year. Yield is expected to average 1,162 pounds per harvest acre, up 87 pounds from 2016. Production in Missouri is estimated at 725,000 bales, up 159,000 from 2016; yield per acre is estimated at 1,172, up 151 pounds. Tennessee is expected to harvest 730,000 bales, up 155,000 from 2016; yield per acre is estimated at 1,031 pounds, down 45 pounds from last year. According to the U.S. Drought Monitor, areas of moderate-to-extreme drought expanded in most of the cotton-producing areas in Arkansas and Missouri.
South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts. Clear and cold conditions prevailed during the week. Daytime temperatures were in the 50s. Overnight lows were in the 20s to 30s. Harvesting activities were completed for the season. A few larger gins were still pressing cotton throughout the region. A few gins were expected to continue working until early January. According to the National Agricultural Statistics Service, as of December 1, cotton production is forecast at 420,000 bales in Louisiana, up 152,000 bales from 2016. Yield is expected to average 938 pounds per harvest acre, down 1 pound from 2016. In Mississippi, cotton production is forecast at 1.41 million bales, up 329,000 bales from 2016. Yield is expected to average 1,083 pounds, down 126 pounds from last year. According to the U.S. Drought Monitor, areas of moderate-to-severe drought expanded in most of the cotton-producing areas in Louisiana and Mississippi. Rainfall totals in the past 90 days are around 20 percent of normal. Rain is in the forecast for the week to come. Producers were hoping for an extended period of wet weather to restore soil moisture prior to spring planting.
Trading
North Delta A light volume of mixed lots, color mostly 51 and better, leaf 4 and better, staple 36 and 37, mike 37-47, strength 28-32, and uniformity 80-83 traded at around 76.00 cents per pound, FOB car/truck (Rule 5, compression charges paid). South Delta No trading activity was reported.
3
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
East Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was active. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. In south Texas, ginning progressed under sunny conditions with daytime temperatures in the upper 60s to low 70s, with nighttime lows in the upper 40s to low 50s. Rainfall is in the forecast. The Corpus Christi Classing Office is operating 1 shift to keep pace with the reduced amount of sample receipts. More than 10 gins continued pressing services in this territory. Ginning advanced in the Blackland Prairies with daytime temperatures in the low 60s to low 80s. Fertilizer was applied and fields were tilled to help control weeds. In Kansas and Oklahoma, temperature highs were mostly in the 50s to 60s, with nighttime lows around freezing. Harvesting made good progress in Kansas under partly cloudy outside conditions. According to local reports, harvesting is around 70 percent completed and ginning is approximately 20 percent completed. Gins operated 2 shifts for 12-hours each and found it difficult to keep pace with the exceptionally large amount of modules. Industry experts reported that dry conditions, among other factors, attributed to several module fires. According to the National Agricultural Statistics Service’s (NASS) Crop Production report released on December 12, production is forecast at 185,000 bales. That is up 161 percent compared to last year. Harvested acres were reported at 91,000 acres and increased 194 percent from the previous year. Yields are forecast at 976 pounds per acre,
down 123 pounds from last year. In Oklahoma, NASS reported 78 percent higher production than 2016 with 1.10 million bales. Yields averaged lower at 951 pounds per acre compared with 1,021 pounds per acre last year. Acreage harvested is forecast at 555,000 acres and 91 percent higher than last year. West Texas Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was very good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. According to the National Agricultural Statistics Service’s Crop Production report released on December 12, production in all of Texas is estimated at 9.50 million bales, compared to 8.1 million last season. Yields averaged 786 pounds per acre compared with 748 pounds per acre last year. Acreage harvested is estimated at 5.80 million acres compared with 5.2 million acres in 2016. Final harvesting made good progress under mostly sunny conditions with daytime temperature highs in the mid-50s to low 70s and overnight lows were mostly around freezing. Modules dotted the countryside and accumulated at gin yards. Yields remained variable with some fields producing up to 5 bales per acre as expected, and other fields falling short of production estimates. Module fires have been more frequent this season, mainly due to dry conditions and finer fiber, according to local industry reports. The region’s last significant rainfall was 35 to 90 days ago, depending on location.
4
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
Trading East Texas
In Texas, a mixed lot containing a light volume of mostly color 42 and better, leaf 4 and better, staple 34 and longer, mike 46-49, strength 28-30, and uniformity 80-83 sold for around 67.75 cents per pound, FOB warehouse (compression charges not paid). A mixed lot containing a light volume of mostly color 42 and better, leaf 2 and 3, staple 32 and longer, mike 42-51, strength 26-31, and uniformity 77-82 sold for around 63.00 cents same terms as above. In Oklahoma, a moderate volume of mostly color 21 and 31, leaf 3 and better, staple 37 and longer, mike 46-48, strength 30-31, and uniformity 82-83 sold for around 74.25 cents, FOB car/truck (compression charges not paid). A light volume of color 34 and better, leaf 5 and better, staple 36 and longer, mike averaging 28.1, strength averaging 29.9, uniformity averaging 79.3, and 75 percent extraneous matter sold for around 55.00 cents, same terms as above. A heavy volume of CCC-loan equities traded for 17.50 to 17.75 cents. West Texas
A heavy volume of color 31 and better, leaf 3 and better, staple 35, mike 35-49, strength 25-33, and uniformity 77-81 sold for around 72.25 cents per pound, FOB car/truck (compression charges not paid). A mixed lot containing a heavy volume of mostly color 31 and better, leaf 3 and better, staple 34 and longer, mike 39-43, strength 25-29, and uniformity 77-80 sold for around 71.00 cents, same terms as above. A light volume of mostly color 11 and 21, leaf 4 and better, staple 36 and 37, mike 29-34, strength 30-32, and uniformity 79-81 sold for around 64.75 cents, same terms as above.
5
Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Desert Southwest (DSW) Spot cotton trading was slow. Supplies were light. Demand was moderate. Producers delivered cotton to the coop, merchant marketing pools, or into the CCC loan program. Average local prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. Pleasant, mild conditions continued in southern and central Arizona. No moisture was recorded in Arizona, New Mexico, and El Paso, Texas in the period. Harvesting neared completion in New Mexico and El Paso, Texas. Ginning continued uninterrupted. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Producers delivered 2017-crop cotton to the coop, merchant marketing pools, or into the CCC loan program. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. Shipper’s price ideas were firm for saw and roller-ginned Acala. Hazy conditions prevailed, due to wildfires burning in southern California. No moisture was recorded in the period. Shippers were busy trucking cotton to ports. All highways were open to ports, no delays. Ginning continued. Some gins completed
pressing operations for the season. Fieldwork was active. American Pima (AP) Spot cotton trading was slow. Supplies and demand were moderate. Average local spot prices were steady. No forward contracting was reported. Domestic mill inquiries were active. Foreign mill inquiries were moderate and for prompt shipment. Interest was best from China. Some shippers continued to limit offerings and sales. Shipper’s prices were higher. According to the Foreign Agricultural Service export sales report, approximately 444,600 bales of 2017-crop AP was committed for the week ending December 7, 2017. Sale commitments of 2018-crop cotton were reported at 35,400 bales compared to no bales committed at this same time last year. Temperatures were mostly in the 60s and 70s in the region. Overnight lows were chilly with temperatures in the high 30s to low 50s. Mostly hazy conditions were observed in the San Joaquin Valley of California, due to the wildfires raging in southern California. No moisture was recorded in the period. Ginning advanced at a steady pace in the far west. A couple of California gins completed pressing operations for the season.
Trading Desert Southwest A light volume of mostly color 21, leaf 3 and better, staple 35-37, mike averaging 29.7, strength averaging 29.3, and uniformity averaging 80.1 traded for around 62.50 cents per pound, uncompressed, FOB warehouse. No trading activity was reported.
San Joaquin Valley
American Pima A light volume of Texas Pima color 3 and better, leaf 2 and 3, and mostly staple 48 and longer traded for around 137.50 cents per pound, FOB car/truck (compression charges not paid).
6
Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Cutting-edge Technology
Technological advancements, such as this innovative equipment for handling round modules, are being developed to facilitate the proper removal of the plastic covering.
This system positions the module such that the protective wrapper is precisely cut in the recommended location, to eliminate small scraps of plastic.
Photos courtesy of Maria Townsend
7
Cotton Ginnings
For complete Cotton Ginnings report click here.
8
Cotton and Wool The following information was excerpted from the Cotton &Wool Outlook report, released on December 14, 2017 The latest U.S. Department of Agriculture (USDA) projections for 2017/18 indicate that world cotton trade is forecast to expand 3 percent from last season and reach a 4-year high. Global trade is projected at 38.5 million bales in 2017/18, 1.2 million bales above last season. However, 2017/18 world cotton trade remains 17 percent below 2012/13’s record of 46.5 million bales. The rising trade outlook is largely attributable to the above-average growth expected in world cotton mill use in 2017/18. Most of the world’s primary spinners of cotton rely on imports, and the leading importers this season are considered nonproducing countries. As a result, this import demand is satisfied by producing and exporting countries (fig. 1). In 2017/18, export prospects for the United States are once again expected to remain strong, while those from Brazil and Australia are forecast to increase as they harvest larger high-quality crops; these three countries are projected to attain a combined 60 percent of global trade. In contrast, cotton exports from India and Uzbekistan are forecast to decline again in 2017/18.
For complete Cotton and Wool report click here.
9
Crop Production The following information was excerpted from the Cotton Production report, released on December 12, 2017 All cotton production is forecast at 21.4 million 480-pound bales, up less than 1 percent from November and up 25 percent from last year. Yield is expected to average 902 pounds per harvested acre, up 2 pounds from last month and up 35 pounds from last year. If realized, the cotton yield forecast for the Nation will be the highest yield on record. Upland cotton production is forecast at 20.7 million 480-pound bales, up 25 percent from 2016. Pima cotton production, forecast at 727,000 bales, was carried forward from an earlier forecast.
For complete Crop Production report click here. 10
Supply and Demand The following information was excerpted from the World Agricultural Supply and Demand Estimates report released on December 12, 2017 This month’s 2017/18 U.S. cotton forecasts include higher exports, slightly higher production, and lower ending stocks. Production is raised 63,000 bales as increases in the Southwest are largely offset by decreases in other regions. Domestic mill use is unchanged, but exports are raised 300,000 bales due to reduced production in other countries. Ending stocks are now projected at 5.8 million bales, 200,000 lower than forecast in November, but more than double their 2016/17 level. The forecast range for the marketing year average price received by producers is raised 3 cents at each end, to a midpoint of 66 cents. The global 2017/18 cotton forecasts include lower beginning stocks, production, and ending stocks. Global production is reduced 1.5 million bales as reductions for Pakistan, India, Burkina Faso, Argentina, and Australia are only partly offset by increases in Turkey and Central Asia. A 1.0-million-bale decline in India’s estimated beginning stocks results in a similar decline in global 2017/18 beginning stocks. The revision in India’s beginning stocks reflects higher estimated consumption since 2015/16, and both India’s and world 2017/18 consumption is forecast higher this month—a 335,000-bale increase in the global forecast. World consumption is forecast to grow at a 4.2 percent annual rate in 2017/18, more than double its long-run level. Projected world ending stocks are 2.9 million bales lower this month than in November, and at 87.9 million bales are now forecast marginally higher than the year before.
For complete WASDE report click here.
11
2017 Crop Quality Southeast Quality Summary 2017-Crop Region Southeast
Classing Office Florence Macon Memphis Southeast
Bales 1,084,538 2,107,463 199,030 3,391,031
Color Grade 41 31 41 31
Leaf Grade 3 3 4 3
Trash 0.46 0.37 0.54 0.41
Mike 4.55 4.42 4.17 4.45
Staple 36.55 36.69 37.60 36.70
Strength 30.39 29.45 30.27 29.80
Uniformity 81.91 81.88 82.08 81.90
Number of Gins 53 79 14 146
Uniformity 81.90 82.28 81.48
Number Of Gins 41 76 19
South Central Quality Summary 2017-Crop Region South Central
Classing Office Dumas Memphis Rayville
Bales 1,174,877 2,185,534 412,420
Color Grade 31 31 31
Leaf Grade 4 4 3
Trash 0.49 0.50 0.43
Mike 4.37 4.34 4.53
Staple 37.87 37.69 37.10
Strength 31.71 30.58 31.34
South Central
3,772,831
31
4
0.49
4.37
37.68
31.01
Staple 35.91 36.03 35.41 36.23 35.99
Strength 29.51 30.01 29.25 29.73 29.74
82.07
136
Southwest Quality Summary 2017-Crop Region Southwest
Classing Office Abilene Corpus Christi Lamesa Lubbock Southwest
Bales 662,379 2,152,510 919,861 1,897,751 5,640,763
Color Grade 21 31 21 21 21
Leaf Grade 2 3 2 3 3
Trash 0.28 0.34 0.26 0.28 0.30
Mike 4.01 4.48 3.80 3.31 3.92
Uniformity 80.07 81.13 79.45 79.78 80.28
Number Of Gins 42 59 39 72 213
Uniformity 81.33 81.33 86.3 86.28
Number Of Gins 35 35 2 23
Far West and American Pima Quality Summary 2017-Crop Classing Office Region Far West Visalia Far West PIMA - Southwest Visalia PIMA - Far West Visalia
Bales 363,558 363,558 14,291 372,504
Color Grade 21 21 1 1
Leaf Grade 2 2 2 2
Trash 0.20 0.20 0.30 0.26
Mike 4.40 4.40 4.21 4.16
Staple 37.35 37.35 47.99 49.24
Strength 32.77 32.77 42.82 43.77
United States Quality Summary 2017-Crop United States Upland United States Pima
13,168,183 386,795
31 1
3 2
0.38 0.26
4.2 4.16
36.69 49.20
30.20 43.74
81.24 86.28
530 25
Source: USDA, AMS, Cotton and Tobacco Program
For complete Quality reports click here.
12
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 Nov
Nov
Nov
Dec
Dec
Dec
10-16
17-23
24-30
1-7
8-14
15-21
Adjusted world price 1/
61.38
61.37
62.59
64.22
65.03
65.95
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
0.36
0.39
0.47
0.55
0.48
0.45
Fine count adjustment 2017
0.51
0.54
0.62
0.70
0.63
0.60
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 December 8, 2016
Through December 7, 2017
Week
Mkt. Year
Outstanding sales
-
Exports
218,400
Total export commitments New sales Buy-backs and cancellations Net sales Sales next marketing year
Week
Mkt. Year
4,537,500
-
7,489,300
3,034,000
166,600
2,603,000
-
7,571,500
-
10,092,300
375,300
-
268,600
-
63,700
-
8,900
311,700
-
259,700
-
66,000
560,700
36,000
1,079,600
Net sales of 259,700 running bales for 2017/2018 were up 39 percent from the previous week, but down 22 percent from the prior 4-week average. Increases were reported for Turkey (63,300 RB), Vietnam (59,500 RB, including 1,100 RB switched from South Korea, 1,100 RB switched from Thailand, 900 RB switched from Japan, and 400 RB switched from China), Pakistan (43,900 RB), and Bangladesh (21,800 RB, including 100 RB switched from Mexico). Reductions were reported for Venezuela (2,200 RB) and Japan (1,300 RB). For 2018/2019, net sales of 36,000 RB were reported for Thailand (18,900 RB), China (8,800 RB), Mexico (6,100 RB), and Peru (2,200 RB). Exports of 166,600 RB were down 33 percent from the previous week, but up 24 percent from the prior 4-week average. The primary destinations were Vietnam (45,100 RB), China (33,200 RB), Mexico (21,500 RB), Indonesia (16,300 RB), and South Korea (11,800 RB). Net sales of Pima totaling 10,100 RB for 2017/2018 were down noticeably from the previous week, but up 29 percent from the prior 4-week average. Increases were reported for Peru (3,300 RB), India (2,700 RB), Hong Kong (2,200 RB), and South Korea (1,300 RB). Reductions of 100 RB were reported for Honduras. Exports of 13,700 RB were down 42 percent from the previous week and 3 percent from the prior 4-week average. The primary destinations were China (4,500 RB), Pakistan (2,800 RB), India (2,100 RB), and Peru (2,000 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 8,700 RB were reported to Vietnam (3,900 RB), Indonesia (3,700 RB), and South Korea (1,100 RB). Exports to Vietnam (3,100 RB), South Korea (1,100 RB), and Indonesia (600 RB), were applied to new or outstanding sales. Decreases totaling 400 RB were reported for China. The current outstanding balance of 64,100 RB is for Indonesia (37,900 RB), Taiwan (11,600 RB), Vietnam (8,700 RB), India (3,800 RB), China (1,500 RB), Bangladesh (500 RB), and Pakistan (100 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
December 14, 2017
13
Number of Bales in Certificated Stocks Stocks as of 12-14-2017
Awaiting Review
Non-Rain Grown Cotton
357
0
0
Galveston, TX
21,787
0
0
Greenville, SC
37
0
0
Houston, TX
7,025
0
0
Memphis, TN
18,422
0
0
Total
47,628
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 74.73 76.48 76.98 78.48
SOUTHEAST 41-4 51-5 73.23 69.73 75.23 70.73 76.23 71.23 77.48 71.48 21-2 69.00 69.50 71.25 73.50 74.75 76.25 76.50 76.75
42-4 70.98 72.48 72.48 72.73
31-3 72.48 74.23 75.23 77.48
EAST TEXAS-OKLAHOMA 31-3 41-4 68.25 66.75 69.00 68.25 71.00 69.25 72.50 72.00 73.75 72.00 75.00 73.00 75.50 73.25 75.75 75.75
NORTH DELTA 41-4 51-5 70.73 66.23 73.48 68.23 73.48 68.73 74.73 68.98 42-4 65.75 66.75 67.50 71.00 71.00 71.75 71.75 71.75
21-2 69.75 70.75 72.75 73.25 75.25 75.75 76.25 76.50
42-4 68.98 69.73 70.48 70.48
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 67.75 66.00 69.50 68.00 71.50 68.75 72.25 72.00 74.00 72.00 75.00 73.00 75.50 73.25 75.75 75.75
42-4 65.50 67.25 68.25 70.25 71.00 72.75 72.75 72.75
SOUTH DELTA 41-4 51-5 70.73 66.23 73.48 68.23 73.48 68.73 74.73 68.98
31-3 72.48 74.23 75.23 77.48
Staple 26-31 32 33 34 35 36 37 38
21-2
74.38 80.63 84.13 85.63 87.88
42-4 68.98 69.73 70.48 70.73
21-2 67.98 70.23 74.48 75.33
SAN JOAQUIN VALLEY 31-3 41-4
72.88 79.13 82.63 83.88 85.63
70.23 72.23 73.03 73.13 73.13
DESERT SOUTHWEST 31-3 41-4 67.23 62.73 69.48 68.98 72.98 69.23 74.58 69.33
51-5 60.98 61.48 63.23 63.48
32-3
69.73 72.23 72.98 73.48 74.48
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 -1050 -975 -750 -475 -350 0 0 0 -225 -350
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 -1050 -975 -750 -475 -350 0 0 0 -225 -350
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. -1100 -979 -832 -482 -271 0 14 0 -271 -396 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
December 14, 2017
14
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color
Leaf
Staple 44
46
48
1
1
137.50
145.50
147.25
2
137.25
145.25
147.00
3
129.50
136.50
137.25
1
137.25
145.25
147.00
2
137.00
145.00
146.75
3
129.25
136.25
137.00
4
119.25
126.75
127.50
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on December 7, 2017.
5 6 2
5 6 3
Mike Range
Diff.
26 & Below
-1900
27-29
-1400
30-32
-900
1
127.00
134.00
134.75
2
124.50
131.50
132.25
33-34
-400
3
123.25
130.25
131.00
35 & Above
0
4
114.25
121.25
122.00
5
98.25
104.75
105.50 Strength
6 4
1
108.00
115.00
116.50
2
107.75
114.75
115.75
Range
Diff.
3
107.50
114.50
115.00
35.4 & Below
-1350
4
102.50
109.50
110.00
35.5-36.4
-1100
5
91.25
98.25
98.75
36.5-37.4
-850
37.5 & Above
0
6 5
1 2
87.00
96.25
96.75
3
87.00
95.75
96.75
4
87.00
90.25
90.75
5
86.75
90.00
90.50
6 6
(Grams per Tex)
Extraneous Matter Level
Diff.
Prep
1 2
79.25
81.50
82.00
3
79.25
81.50
82.00
1 2
4
79.25
81.50
82.00
Other
5
79.00
81.25
81.75
1 2
-810 -1095 -715
6 78.50 80.75 81.25 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
December 14, 2017
15
