Weekly Cotton Market Review
Mp_cn812
Vol. 98
No. 49
July 14, 2017 Inside this Issue Market Overview Price Support Southeastern South Central Southwestern Western Textile Mill Report Price Information
USDA, AMS, Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, Tennessee 38133
Weekly Cotton Market Review Average quotations were 146 points lower than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton and Tobacco Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets averaged 65.52 cents per pound for the week ending Thursday, July 13, 2017. The weekly average was down from 66.98 last week and from 68.85 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 67.29 cents Friday, July 7 to a low of 63.92 cents Thursday, July 13. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 13 totaled 239 bales. This compares to 375 bales reported last week and 40,551 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,564,064 bales compared to 1,509,704 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 66.54 cents, compared to 69.47 cents last week. Prices are in effect from July 14-20, 2017
Spot Quotations Supply & Demand Cotton & Wool ICE Futures A Index Pima Quotations
Contact Us [email protected]
Adjusted World Price (AWP) Loan Deficiency Payment (LDP) Coarse Count Adjustment (CCA)
65.47 0.00 0.00
Source: Farm Service Agency, FSA, USDA
ELS Competitiveness Payment Fine Count Adjustment 2016 Crop Fine Count Adjustment 2017 Crop
0.00 0.00 0.00
Regional Summaries Southeastern Market Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Clear to partly cloudy conditions prevailed across South Carolina and much of the lower Southeast during the period with daytime high temperatures in the 80s to high 90s. Scattered showers and thunderstorms brought around one-half of an inch up to 4 inches of moisture to areas throughout Alabama, portions of south Georgia, and the Gulf and Atlantic coastal regions. The U.S. Drought Monitor reported the state of Georgia is entirely drought-free for the first time since April 19, 2016 on it’s map. The crop made good progress under excellent conditions. Early-planted cotton was treated with plant growth regulators in some areas. Cotton extension specialists reported that populations of Silver Whitefly, plant bugs, and stink bugs were building rapidly. Hotspots were treated as necessary. Mostly clear conditions were observed across North Carolina and Virginia during the period with daytime high temperatures in the mid-80s. Intermittent afternoon shower activity brought less than one-half of an inch of accumulated moisture to these areas during the period. Local experts reported that the crop made good progress in the Carolinas and Virginia. Insect pressure was mostly light, but cotton extension specialists reported that pest populations, including bollworms, were building. Some hotspots were treated. Producers continued to battle weeds in wet fields. Boll-setting was underway across the entire Southeast region and reached 21 percent in Alabama, 20 in Georgia, 7 in North Carolina, 17 in South Carolina, and 4 percent in Virginia, according to the National Agricultural Statistics Service’s Crop Progress report released on July 10. South Central Markets North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Mostly clear and hot climatic conditions prevailed during the period. A few scattered showers brought
light amounts of moisture to isolated areas late-week. Daytime temperatures were in the 90s, with the heat index just reaching the triple digits. Overnight lows were in the 70s. Crop specialists from the University of Tennessee advised producers to closely monitor soil moisture levels and irrigation scheduling during periods of high temperatures, which are forecast for the remainder of July and into August, to minimize the potential yield loss associated with hot weather and droughty conditions. The crop made normal progress under good conditions. Plant growth regulators were applied as necessary. Fields were closely monitored for insect pests, particularly plant bugs and bollworms. Treatments were applied as necessary to control outbreaks. According to the National Agricultural Statistics Service’s Crop Progress report released on July 10, boll-setting reached 50 percent in Arkansas, 9 in Missouri, and 11 percent in Tennessee. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Open skies and hot temperatures characterized weather conditions during the period. Isolated thunderstorms brought light amounts of moisture to some areas late-week. Daytime temperatures were in the 80s to 90s. Overnight lows were in the 70s. The crop made good progress in most areas. Outdoor activities included measures to control weeds in fields that have been too wet to support equipment. Plant growth regulators were applied as necessary. The levels of boll worms, fleahoppers, and plant bugs were carefully monitored; local experts reported that insect pressure was light. Chemicals were applied as necessary to control outbreaks. According to the National Agricultural Statistics Service’s Crop Progress report released on July 10, boll-setting reached 54 percent in Louisiana and 22 in Mississippi. Southwestern Markets East Texas-Oklahoma Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very 2
Regional Summaries light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from Bangladesh, China, and Indonesia. Dryland harvesting expanded and modules accumulated on gin yards in the Rio Grande Valley. More gins opened for the season and began to provide ginning services. Defoliants were applied to irrigated fields. Cotton fields were in full-bloom in south Texas. The crop progressed in the Upper Coast and Coastal Bend counties and bolls had begun to open. Defoliants and pre-harvest aids were expected to be applied in about 10 days. Some stray thunderstorms were present and caused delays. In east Texas, the crop progressed with daytime temperature highs in the upper 90s to low 100s. A considerable amount of acreage was cultivated to control weeds. Fields had begun to bloom. Intermittent storms brought rainfall to localized areas. In Kansas, the crop advanced under hot weather conditions with high temperatures in the upper 90s to low 100s. Industry was encouraged with producers who grew cotton for the first time. In Oklahoma, recent rainfall gave a boost to stands. Producers applied insecticides and herbicides as needed. West Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from Bangladesh, China, and Indonesia. The crop advanced and fields dried with daytime temperatures in the mid-to-upper 90s. Stands squared and first blooms were detected in some fields. Replanted fields had emerged and were at the 2 to 3 true leaf stage. Irrigation was underway. Fertilizer and plant growth regulators were applied as needed. Industry sources cited heavy damage from hail. Some areas reported as much as 50 percent loss of planted acres. Local reports indicated that some fields that had been lost to hail storms were replanted with uninsured cotton, dryland sorghum, or left fallow. Recent rainfall increased weed pressure and spraying was active. Educational information and expert support reminded industry members that communication and label use is essential to minimalize drift issues. Teams of hoe crews were in the fields helping to control weed populations. Insect pressure was light, according to industry sources. Active monitoring for the fall armyworm and other pests was underway. Western Markets Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Triple digit temperatures continued, with a one day high of 118 degrees in central and western Arizona. Producers managed the crop to prevent heat stress with irrigation. Little-to-no insect pressure was reported. Bolls were cracking open in Yuma, Arizona. Sunny, hot conditions progressed the crop in New Mexico and El Paso, Texas. Passing thunderstorms produced little moisture. Producers managed growth with plant growth regulators. Overall, the crop made good progress in the DSW. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Hot, dry conditions advanced the crop. Producers were irrigating. The crop was blooming and in good condition.
3
Regional Summaries American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were good for new-crop cotton. Interest was best from China and Peru. Triple digit temperatures continued for most of the far west. Afternoon thunderstorms deposited less than one-quarter of an inch of moisture for cotton-growing areas of New Mexico and El Paso, Texas. Crop experts reminded producers to continue to monitor insect activity and check plant growth to best decide on treatment schedules. Overall, the crop made good progress in the region. Textile Mill Domestic mill buyers inquired for a light volume color 41, leaf 4 and better, and staple 35 and longer for January 2018 and forward delivery. No sales were reported. Most mills have covered their immediate to nearby raw cotton needs. The undertone from mill buyers was cautious. Demand through export channels was light. Mill buyers in the Far East continued to inquire for a light volume of low-grade styles of cotton for January through May 2018 shipment. No sales were reported.
Photos courtesy of El Paso County Water Improvement District #1
4
Regional Price Information
Southeastern Markets
No trading activity was reported.
South Central Markets
North Delta
No trading activity was reported. South Delta No trading activity was reported.
Southwestern Markets
East Texas In Oklahoma, a light volume of mostly color 31, leaf 3, staple 36 and 37, mike 37-45, strength 27-30, uniformity 80-82, and 100 percent extraneous matter sold for around 70.00 cents per pound, FOB car/truck (compression charges not paid). In Kansas, a mixed lot containing a light volume of mostly color 41 and better, leaf 3 and better, staple 37 and longer, mike 35-46, strength 26-31, uniformity 79-82, and 50 percent extraneous matter sold for around 67.00 cents, same terms as above. West Texas A mixed lot containing a light volume of mostly color 41 and better, leaf 3 and better, staple 37 and longer, mike 35-46, strength 26-31, uniformity 79-82, and 50 percent extraneous matter sold for around 67.00 cents per pound, FOB car/truck (compression charges not paid).
Western Markets
Desert Southwest No trading activity was reported. San Joaquin Valley No trading activity was reported. American Pima No trading activity was reported.
5
San Joaquin Valley - Kern County Cotton Fields
6
Supply & Demand
The following information was excerpted from the World Agricultural Supply and Demand Estimates report released on July 12, 2017 The U.S. 2017/18 cotton projections show production is 200,000 bales lower than last month. With no change in domestic use or exports, ending stocks are also revised down 200,000 bales. The decrease in the crop projection is attributed mainly to lower planted area as indicated in the June 30 A creage report, combined with slightly less favorable assumptions about abandonment based on current conditions. The projected range of 54 to 68 cents per pound for the marketing year average price received by producers is unchanged on the lower end and reduced 6 cents on the upper end; the midpoint of 61 cents is reduced 3 cents from last month. Higher production is increasing this month’s global cotton stocks forecasts for both 2016/17 and 2017/18. The world carry in for 2017/18 is increased 934,000 bales owing in large part to an upward revision of 500,000 bales for India’s estimated 2016/17 crop. World 2017/18 production is increased 636,000 bales, despite the lower expected U.S. crop, mainly on increased area expectations for India. Production is also raised for Turkey, but is lowered for Pakistan and Mexico. World consumption is also forecast higher in both 2016/17—up nearly 200,000 bales—and 2017/18—up more than 500,000 bales. World 2017/18 ending stocks are now projected at 88.7 million bales, an increase of 1.0 million from the June forecast.
For the complete Supply & Demand report click here. 7
Cotton & Wool The following information was excerpted from the Cotton & Wool Outlook report, released on July 14, 2017 Global Growth of Cotton Mill Use Varies by Country The latest U.S. Department of Agriculture (USDA) cotton projections for 2017/18 (August-July) indicate that global cotton mill use is forecast to rise for the second consecutive season. World cotton consumption is projected at 117.0 million bales in 2017/18, 3 percent higher than 2016/17 and the highest mill use since 2009/10 when consumption reached 119.5 million bales. China—the leading spinner of raw cotton—has expanded its mill use since 2014/15, and is forecast to account for nearly one-third of the 2017/18 global total. Cotton mill use is also projected to expand in a number of other countries as well. With 2014/15 as the base year, 2017/18 world cotton consumption is projected 5 percent higher (fig. 1). While China’s mill use is expected nearly 12 percent above 2014/15, cotton mill use in India and Pakistan remains relatively flat. In contrast, cotton mill use continues to rise in Bangladesh, and 2017/18 use is projected to be 19 percent above 2014/15. Even more remarkable has been the growth in Vietnam, where 2017/18 mill use is expected to be 44 percent above 2014/15.
For the complete Cotton & Wool Outlook report click here.
8
Number of Bales in Certificated Stocks Stocks as of 7-13-2017
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
22,844
0
0
Galveston, TX
10,640
0
0
Greenville, SC
57
0
0
Houston, TX
165
0
0
Memphis, TN
33,119
1,371
0
Total
66,825
1,371
0
Delivery Points
Source: USDA, AMS and ICE U. S. Futures
Market
Average Price for 41-4-34 Fri Mon Tue Wed 7-Jul 10-Jul 11-Jul 12-Jul
Thu 13-Jul
SE ND SD ETX WTX DSW
69.00 68.25 68.25 68.00 68.00 64.25
66.97 66.22 66.22 66.00 66.00 62.22
67.40 66.65 66.65 66.25 66.25 62.65
67.38 66.63 66.63 65.75 65.75 62.63
65.79 65.04 65.04 64.25 64.25 61.04
SJV
65.25
63.22
63.65
63.63
62.04
7-Mkt Avg
67.29
65.26
65.64
65.49
63.92
Market SE ND SD ETX WTX DSW SJV 7-Mkt Avg
Source: USDA, AMS, Cotton and Tobacco Program
Market
Average Price for 31-3-35 Fri Mon Tue Wed 7-Jul 10-Jul 11-Jul 12-Jul 70.25 69.50 69.50 69.50 69.50 68.25 74.15 70.09
68.22 67.47 67.47 67.50 67.50 66.22 72.12 68.07
68.65 67.90 67.90 67.75 67.75 66.65 72.55 68.45
68.63 67.88 67.88 67.25 67.25 66.63 72.53 68.29
Thu 13-Jul 67.04 66.29 66.29 65.75 65.75 65.04 70.94 66.73
Source: USDA, AMS, Cotton and Tobacco Program
Spot Transactions Mon Tue 10-Jul 11-Jul
Fri 7-Jul
Wed 12-Jul
Thu 13-Jul
Upland SE ND SD ETX WTX DSW SJV
0 0 0 4 0 0 0
0 0 0 0 0 0 0
0 0 0 10 225 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Total
4
0
235
0
0
Pima
0
0
0
0
0
Source: USDA, AMS, Cotton and Tobacco Program 9
31-3 65.29 66.54 67.04 68.54
SOUTHEAST 41-4 51-5 63.79 60.29 65.79 61.29 66.29 61.79 68.04 62.04
21-2 61.25 61.75 63.50 65.00 66.50 67.25 68.00 68.00
42-4 61.54 63.04 63.04 63.29
Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. NORTH DELTA SOUTH DELTA 31-3 41-4 51-5 42-4 Staple 31-3 41-4 51-5 64.04 62.29 57.79 60.54 33 64.04 62.29 57.79 65.79 65.04 59.29 61.29 34 65.79 65.04 59.29 66.29 65.54 60.29 62.04 35 66.29 65.54 60.29 68.54 66.79 60.54 62.04 36 68.54 66.79 60.54
EAST TEXAS-OKLAHOMA 31-3 41-4 60.50 59.00 61.25 60.50 63.25 61.50 65.00 64.25 65.75 64.25 66.00 64.75 66.25 65.00 66.25 66.25
42-4 58.00 59.00 59.75 63.25 63.25 63.50 63.50 63.50
21-2 61.50 62.50 64.50 65.00 67.00 67.25 68.00 68.00
WEST TEXAS 31-3 41-4 60.00 58.25 61.75 60.25 63.50 61.00 64.25 64.25 65.75 64.25 66.50 65.00 67.00 65.50 67.25 66.25
42-4 57.25 59.00 60.00 62.00 62.75 64.50 64.50 64.50
Staple 26-31 32 33 34 35 36 37 38
21-2
66.19 72.44 75.94 77.44 79.69
42-4 60.54 61.29 62.04 62.29
21-2 60.04 62.29 66.54 67.14
SAN JOAQUIN VALLEY 31-3 41-4
64.69 70.94 74.44 75.69 77.44
62.04 64.04 64.84 64.94 64.94
DESERT SOUTHWEST 31-3 41-4 59.29 54.79 61.54 61.04 65.04 61.29 66.39 61.39
51-5 53.04 53.54 55.29 55.54
32-3
61.54 64.04 64.79 65.29 66.29
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
LANDED MILL QUOTATIONS - GROUP 201 MILL POINTS Cents per pound, even running lots, mike 35-49, strength 23.5 or more grams per tex, net weight, prompt shipment, delivered brokerage included. Quotations for group 200 mill points are slightly higher and for Alabama, Georgia and east Tennessee mills are slightly lower. 31-3
NQ NQ NQ
SE GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ--No quote available
NQ NQ NQ
42-4
31-3
NQ NQ NQ
NQ NQ NQ
DELTA GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ NQ NQ
42-4
NQ NQ NQ
Staple 31 32 33 34 35 36
31-3 NQ NQ NQ NQ
TX-OK GROWTH AREA 41-4 32-3 NQ NQ NQ NQ NQ NQ NQ NQ
42-4 NQ NQ NQ NQ
SJV GROWTH AREA 31-3 41-4 51-5
NQ NQ NQ
NQ NQ NQ
NQ NQ NQ July 13, 2017
10
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2016-2017 Description
June
June
June
June 30
July
July
9-15
16-22
23-29
July 6
7-13
14-20
Adjusted world price 1/
68.03
67.31
64.60
64.79
65.33
65.47
Coarse count adjustment
0.00
0.00
0.00
0.00
0.00
0.00
Loan Deficiency Payment (LDP)
0.00
0.00
0.00
0.00
0.00
0.00
1/ Color 41, leaf 4, staple 34, mike 35-36 & 43-49, strength readings of 26.0-28.9 grams per tex, length uniformity of 80.0-81.9 percent. Source: Farm Service Agency, USDA. ICE futures contract settlement, designated spot market average for color 41, leaf 4, staple 34, and Far Eastern 'A' Index Color 41, Leaf 4, Staple 34 Date
Far Eastern
Futures Settlement
7-Market
A Index 1/
Jul-17
Oct-17
Dec-17
Mar-18
May-18
Jul-18
Average
Current
Forward
July 07
75.29
69.75
68.59
68.38
68.74
69.11
67.29
84.60
78.40
July 10
-
67.72
67.29
67.19
67.64
68.12
65.26
84.80
78.65
July 11
-
68.15
67.67
67.27
67.72
68.24
65.64
83.45
77.50
July 12
-
68.13
67.27
66.94
67.41
67.93
65.49
83.70
77.95
July 13
-
66.54
66.37
66.16
66.75
67.33
63.92
83.20
77.65
1/ Far Eastern A Index furnished by Cotton Outlook of Liverpool. Color 41, Leaf 4, Staple 34 Cents per Pound
7-Market
Date
Southeast
North Delta
South Delta
East TX/OK
West Texas
Desert SW
SJ Valley
Average
July 07
69.00
68.25
68.25
68.00
68.00
64.25
65.25
67.29
July 10
66.97
66.22
66.22
66.00
66.00
62.22
63.22
65.26
July 11
67.40
66.65
66.65
66.25
66.25
62.65
63.65
65.64
July 12
67.38
66.63
66.63
65.75
65.75
62.63
63.63
65.49
July 13
65.79
65.04
65.04
64.25
64.25
61.04
62.04
63.92
Source: USDA, AMS, Cotton and Tobacco Program, Cotton Market News. Marketing Years Description
2015-2016
2016-2017
Through July 7, 2016
Through July 6, 2017
Week
Mkt. Year
Week
Outstanding sales
-
1,176,900
-
1,734,700
Exports
148,700
7,739,700
195,300
12,838,200
Total export commitments
Mkt. Year
-
8,916,600
-
14,572,900
New sales
55,800
-
23,400
-
Buy-backs and cancellations
600
-
10,400
-
55,200
-
13,000
-
113,700
2,052,800
152,600
4,596,500
Net sales Sales next marketing year
Net upland sales of 13,000 RB for 2016/2017--a marketing-year low--were down 93 percent from the previous week and from the prior 4-week average. Increases were reported for Mexico (5,300 RB), Turkey (3,300 RB), Vietnam (3,100 RB, including 2,400 RB switched from South Korea), India (2,800 RB), and Thailand (1,200 RB, including 400 RB switched from Japan). Reductions were reported for South Korea (2,600 RB), China (2,000 RB), and Japan (1,300 RB). For 2017/2018, net sales of 152,600 RB were reported primarily for China (62,100 RB), Bangladesh (25,100 RB), Vietnam (21,100 RB), and Turkey (21,100 RB). Exports of 195,300 RB were down 35 percent from the previous week and 25 percent from the prior 4-week average. The primary destinations were Vietnam (48,100 RB), Turkey (42,500 RB), Mexico (16,400 RB), China (16,300 RB), and India (15,800 RB). Net sales of Pima totaling 2,600 RB for 2016/2017 were up 48 percent from the previous week, but down 33 percent from the prior 4-week average. Increases for Japan (1,300 RB), South Korea (1,300 RB), and Turkey (300 RB), were partially offset by reductions for India (200 RB). For 2017/2018, net sales of 2,100 RB were reported for primarily for Hong Kong (1,400 RB) and Japan (600 RB). Exports of 7,400 RB were up 82 percent from the previous week, but down 15 percent from the prior 4-week average. The destinations were primarily Peru (2,000 RB), India (1,900 RB), Bangladesh (1,000 RB), and Japan (900 RB). Exports for Own Account: New exports for own account were reported to Indonesia (2,400 RB), Vietnam (2,200 RB), and India (500 RB). Exports to Vietnam (1,800 RB), Indonesia (900 RB), Thailand (600 RB), and India (500 RB were applied to new or outstanding sales. Decreases were reported for Indonesia (1,100 RB) and Bangladesh (400 RB). The current outstanding balance of 77,400 RB is for Indonesia (38,600 RB), Taiwan (14,400 RB), Vietnam (9,700 RB), India (5,500 RB), South Korea (4,600 RB), Bangladesh (2,800 RB), Thailand (1,300 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
July 13, 2017
11
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color 1
Leaf
Staple 44
46
48
1
138.50
146.50
147.75
2
138.25
146.25
147.50
3
130.50
137.50
137.75
1
138.25
146.25
147.50
2
138.00
146.00
147.25
3
130.25
137.25
137.50
4
120.25
127.75
128.00
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
27-29
-1400
30-32
-900
1
128.00
135.00
135.25
2
125.50
132.50
132.75
33-34
-400
3
124.25
131.25
131.50
35 & Above
0
4
115.25
122.25
122.50
5
99.25
105.75
106.00 Strength
6 4
1
109.00
116.00
117.00
2
108.75
115.75
116.25
Range
Diff.
3
108.50
115.50
115.50
35.4 & Below
-1350
4
103.50
110.50
110.50
35.5-36.4
-1100
5
92.25
99.25
99.25
36.5-37.4
-850
37.5 & Above
0
6 5
6
(Grams per Tex)
1 2
88.00
97.25
97.25
3
88.00
96.75
97.25
4
88.00
91.25
91.25
5
87.75
91.00
91.00
Extraneous Matter
6
Level
1
Prep
2
80.25
82.50
82.50
3
80.25
82.50
82.50
1 2
4
80.25
82.50
82.50
Other
5
80.00
82.25
82.25
1 2
Diff. -810 -1095 -715
6 79.50 81.75 81.75 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
July 13, 2017
12
Contact & Subscription Information
Contact Information Division Director Barbara Meredith
[email protected]
(901) 384-3016
Deputy Division Director Cathy L. Greene
[email protected]
(901) 384-3016
Southeastern Area Reporter Danny Pino Jr.
[email protected]
(478) 752-3560
South Central Area Reporter Jeff Carnahan
[email protected]
(901) 384-3016
Southwestern Area Reporter Jane Byers-Angle
[email protected]
(806) 472-7635
Western Area Reporter Maria Townsend
[email protected]
(559) 651-3019
National Reporter Veronica Williamson
[email protected]
(843) 667-4381
Subscription Information All Market News reports can be found on the internet, free of charge. Click here for reports. Subscribe to email delivery of any Market News reports at [email protected] Printed copies can also be obtained by contacting Market News headquarters at the following address: USDA, AMS, Cotton and Tobacco Program Cotton Market News Division - Room 10 3275 Appling Road Memphis, TN 38133 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or part of an individual’s income is derived from any public assistance program (not all prohibited bases apply to all programs). Persons with disabilities who require alternative means of communication of program information (Braille, large print, audiotape, etc.) should contact the USDA’s TARGET Center at (202) 720-2600 (Voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC 202509410 or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.
13
Vol. 98
No. 49
July 14, 2017 Inside this Issue Market Overview Price Support Southeastern South Central Southwestern Western Textile Mill Report Price Information
USDA, AMS, Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, Tennessee 38133
Weekly Cotton Market Review Average quotations were 146 points lower than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton and Tobacco Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets averaged 65.52 cents per pound for the week ending Thursday, July 13, 2017. The weekly average was down from 66.98 last week and from 68.85 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 67.29 cents Friday, July 7 to a low of 63.92 cents Thursday, July 13. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 13 totaled 239 bales. This compares to 375 bales reported last week and 40,551 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,564,064 bales compared to 1,509,704 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 66.54 cents, compared to 69.47 cents last week. Prices are in effect from July 14-20, 2017
Spot Quotations Supply & Demand Cotton & Wool ICE Futures A Index Pima Quotations
Contact Us [email protected]
Adjusted World Price (AWP) Loan Deficiency Payment (LDP) Coarse Count Adjustment (CCA)
65.47 0.00 0.00
Source: Farm Service Agency, FSA, USDA
ELS Competitiveness Payment Fine Count Adjustment 2016 Crop Fine Count Adjustment 2017 Crop
0.00 0.00 0.00
Regional Summaries Southeastern Market Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Clear to partly cloudy conditions prevailed across South Carolina and much of the lower Southeast during the period with daytime high temperatures in the 80s to high 90s. Scattered showers and thunderstorms brought around one-half of an inch up to 4 inches of moisture to areas throughout Alabama, portions of south Georgia, and the Gulf and Atlantic coastal regions. The U.S. Drought Monitor reported the state of Georgia is entirely drought-free for the first time since April 19, 2016 on it’s map. The crop made good progress under excellent conditions. Early-planted cotton was treated with plant growth regulators in some areas. Cotton extension specialists reported that populations of Silver Whitefly, plant bugs, and stink bugs were building rapidly. Hotspots were treated as necessary. Mostly clear conditions were observed across North Carolina and Virginia during the period with daytime high temperatures in the mid-80s. Intermittent afternoon shower activity brought less than one-half of an inch of accumulated moisture to these areas during the period. Local experts reported that the crop made good progress in the Carolinas and Virginia. Insect pressure was mostly light, but cotton extension specialists reported that pest populations, including bollworms, were building. Some hotspots were treated. Producers continued to battle weeds in wet fields. Boll-setting was underway across the entire Southeast region and reached 21 percent in Alabama, 20 in Georgia, 7 in North Carolina, 17 in South Carolina, and 4 percent in Virginia, according to the National Agricultural Statistics Service’s Crop Progress report released on July 10. South Central Markets North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Mostly clear and hot climatic conditions prevailed during the period. A few scattered showers brought
light amounts of moisture to isolated areas late-week. Daytime temperatures were in the 90s, with the heat index just reaching the triple digits. Overnight lows were in the 70s. Crop specialists from the University of Tennessee advised producers to closely monitor soil moisture levels and irrigation scheduling during periods of high temperatures, which are forecast for the remainder of July and into August, to minimize the potential yield loss associated with hot weather and droughty conditions. The crop made normal progress under good conditions. Plant growth regulators were applied as necessary. Fields were closely monitored for insect pests, particularly plant bugs and bollworms. Treatments were applied as necessary to control outbreaks. According to the National Agricultural Statistics Service’s Crop Progress report released on July 10, boll-setting reached 50 percent in Arkansas, 9 in Missouri, and 11 percent in Tennessee. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Open skies and hot temperatures characterized weather conditions during the period. Isolated thunderstorms brought light amounts of moisture to some areas late-week. Daytime temperatures were in the 80s to 90s. Overnight lows were in the 70s. The crop made good progress in most areas. Outdoor activities included measures to control weeds in fields that have been too wet to support equipment. Plant growth regulators were applied as necessary. The levels of boll worms, fleahoppers, and plant bugs were carefully monitored; local experts reported that insect pressure was light. Chemicals were applied as necessary to control outbreaks. According to the National Agricultural Statistics Service’s Crop Progress report released on July 10, boll-setting reached 54 percent in Louisiana and 22 in Mississippi. Southwestern Markets East Texas-Oklahoma Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very 2
Regional Summaries light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from Bangladesh, China, and Indonesia. Dryland harvesting expanded and modules accumulated on gin yards in the Rio Grande Valley. More gins opened for the season and began to provide ginning services. Defoliants were applied to irrigated fields. Cotton fields were in full-bloom in south Texas. The crop progressed in the Upper Coast and Coastal Bend counties and bolls had begun to open. Defoliants and pre-harvest aids were expected to be applied in about 10 days. Some stray thunderstorms were present and caused delays. In east Texas, the crop progressed with daytime temperature highs in the upper 90s to low 100s. A considerable amount of acreage was cultivated to control weeds. Fields had begun to bloom. Intermittent storms brought rainfall to localized areas. In Kansas, the crop advanced under hot weather conditions with high temperatures in the upper 90s to low 100s. Industry was encouraged with producers who grew cotton for the first time. In Oklahoma, recent rainfall gave a boost to stands. Producers applied insecticides and herbicides as needed. West Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from Bangladesh, China, and Indonesia. The crop advanced and fields dried with daytime temperatures in the mid-to-upper 90s. Stands squared and first blooms were detected in some fields. Replanted fields had emerged and were at the 2 to 3 true leaf stage. Irrigation was underway. Fertilizer and plant growth regulators were applied as needed. Industry sources cited heavy damage from hail. Some areas reported as much as 50 percent loss of planted acres. Local reports indicated that some fields that had been lost to hail storms were replanted with uninsured cotton, dryland sorghum, or left fallow. Recent rainfall increased weed pressure and spraying was active. Educational information and expert support reminded industry members that communication and label use is essential to minimalize drift issues. Teams of hoe crews were in the fields helping to control weed populations. Insect pressure was light, according to industry sources. Active monitoring for the fall armyworm and other pests was underway. Western Markets Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Triple digit temperatures continued, with a one day high of 118 degrees in central and western Arizona. Producers managed the crop to prevent heat stress with irrigation. Little-to-no insect pressure was reported. Bolls were cracking open in Yuma, Arizona. Sunny, hot conditions progressed the crop in New Mexico and El Paso, Texas. Passing thunderstorms produced little moisture. Producers managed growth with plant growth regulators. Overall, the crop made good progress in the DSW. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Hot, dry conditions advanced the crop. Producers were irrigating. The crop was blooming and in good condition.
3
Regional Summaries American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were good for new-crop cotton. Interest was best from China and Peru. Triple digit temperatures continued for most of the far west. Afternoon thunderstorms deposited less than one-quarter of an inch of moisture for cotton-growing areas of New Mexico and El Paso, Texas. Crop experts reminded producers to continue to monitor insect activity and check plant growth to best decide on treatment schedules. Overall, the crop made good progress in the region. Textile Mill Domestic mill buyers inquired for a light volume color 41, leaf 4 and better, and staple 35 and longer for January 2018 and forward delivery. No sales were reported. Most mills have covered their immediate to nearby raw cotton needs. The undertone from mill buyers was cautious. Demand through export channels was light. Mill buyers in the Far East continued to inquire for a light volume of low-grade styles of cotton for January through May 2018 shipment. No sales were reported.
Photos courtesy of El Paso County Water Improvement District #1
4
Regional Price Information
Southeastern Markets
No trading activity was reported.
South Central Markets
North Delta
No trading activity was reported. South Delta No trading activity was reported.
Southwestern Markets
East Texas In Oklahoma, a light volume of mostly color 31, leaf 3, staple 36 and 37, mike 37-45, strength 27-30, uniformity 80-82, and 100 percent extraneous matter sold for around 70.00 cents per pound, FOB car/truck (compression charges not paid). In Kansas, a mixed lot containing a light volume of mostly color 41 and better, leaf 3 and better, staple 37 and longer, mike 35-46, strength 26-31, uniformity 79-82, and 50 percent extraneous matter sold for around 67.00 cents, same terms as above. West Texas A mixed lot containing a light volume of mostly color 41 and better, leaf 3 and better, staple 37 and longer, mike 35-46, strength 26-31, uniformity 79-82, and 50 percent extraneous matter sold for around 67.00 cents per pound, FOB car/truck (compression charges not paid).
Western Markets
Desert Southwest No trading activity was reported. San Joaquin Valley No trading activity was reported. American Pima No trading activity was reported.
5
San Joaquin Valley - Kern County Cotton Fields
6
Supply & Demand
The following information was excerpted from the World Agricultural Supply and Demand Estimates report released on July 12, 2017 The U.S. 2017/18 cotton projections show production is 200,000 bales lower than last month. With no change in domestic use or exports, ending stocks are also revised down 200,000 bales. The decrease in the crop projection is attributed mainly to lower planted area as indicated in the June 30 A creage report, combined with slightly less favorable assumptions about abandonment based on current conditions. The projected range of 54 to 68 cents per pound for the marketing year average price received by producers is unchanged on the lower end and reduced 6 cents on the upper end; the midpoint of 61 cents is reduced 3 cents from last month. Higher production is increasing this month’s global cotton stocks forecasts for both 2016/17 and 2017/18. The world carry in for 2017/18 is increased 934,000 bales owing in large part to an upward revision of 500,000 bales for India’s estimated 2016/17 crop. World 2017/18 production is increased 636,000 bales, despite the lower expected U.S. crop, mainly on increased area expectations for India. Production is also raised for Turkey, but is lowered for Pakistan and Mexico. World consumption is also forecast higher in both 2016/17—up nearly 200,000 bales—and 2017/18—up more than 500,000 bales. World 2017/18 ending stocks are now projected at 88.7 million bales, an increase of 1.0 million from the June forecast.
For the complete Supply & Demand report click here. 7
Cotton & Wool The following information was excerpted from the Cotton & Wool Outlook report, released on July 14, 2017 Global Growth of Cotton Mill Use Varies by Country The latest U.S. Department of Agriculture (USDA) cotton projections for 2017/18 (August-July) indicate that global cotton mill use is forecast to rise for the second consecutive season. World cotton consumption is projected at 117.0 million bales in 2017/18, 3 percent higher than 2016/17 and the highest mill use since 2009/10 when consumption reached 119.5 million bales. China—the leading spinner of raw cotton—has expanded its mill use since 2014/15, and is forecast to account for nearly one-third of the 2017/18 global total. Cotton mill use is also projected to expand in a number of other countries as well. With 2014/15 as the base year, 2017/18 world cotton consumption is projected 5 percent higher (fig. 1). While China’s mill use is expected nearly 12 percent above 2014/15, cotton mill use in India and Pakistan remains relatively flat. In contrast, cotton mill use continues to rise in Bangladesh, and 2017/18 use is projected to be 19 percent above 2014/15. Even more remarkable has been the growth in Vietnam, where 2017/18 mill use is expected to be 44 percent above 2014/15.
For the complete Cotton & Wool Outlook report click here.
8
Number of Bales in Certificated Stocks Stocks as of 7-13-2017
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
22,844
0
0
Galveston, TX
10,640
0
0
Greenville, SC
57
0
0
Houston, TX
165
0
0
Memphis, TN
33,119
1,371
0
Total
66,825
1,371
0
Delivery Points
Source: USDA, AMS and ICE U. S. Futures
Market
Average Price for 41-4-34 Fri Mon Tue Wed 7-Jul 10-Jul 11-Jul 12-Jul
Thu 13-Jul
SE ND SD ETX WTX DSW
69.00 68.25 68.25 68.00 68.00 64.25
66.97 66.22 66.22 66.00 66.00 62.22
67.40 66.65 66.65 66.25 66.25 62.65
67.38 66.63 66.63 65.75 65.75 62.63
65.79 65.04 65.04 64.25 64.25 61.04
SJV
65.25
63.22
63.65
63.63
62.04
7-Mkt Avg
67.29
65.26
65.64
65.49
63.92
Market SE ND SD ETX WTX DSW SJV 7-Mkt Avg
Source: USDA, AMS, Cotton and Tobacco Program
Market
Average Price for 31-3-35 Fri Mon Tue Wed 7-Jul 10-Jul 11-Jul 12-Jul 70.25 69.50 69.50 69.50 69.50 68.25 74.15 70.09
68.22 67.47 67.47 67.50 67.50 66.22 72.12 68.07
68.65 67.90 67.90 67.75 67.75 66.65 72.55 68.45
68.63 67.88 67.88 67.25 67.25 66.63 72.53 68.29
Thu 13-Jul 67.04 66.29 66.29 65.75 65.75 65.04 70.94 66.73
Source: USDA, AMS, Cotton and Tobacco Program
Spot Transactions Mon Tue 10-Jul 11-Jul
Fri 7-Jul
Wed 12-Jul
Thu 13-Jul
Upland SE ND SD ETX WTX DSW SJV
0 0 0 4 0 0 0
0 0 0 0 0 0 0
0 0 0 10 225 0 0
0 0 0 0 0 0 0
0 0 0 0 0 0 0
Total
4
0
235
0
0
Pima
0
0
0
0
0
Source: USDA, AMS, Cotton and Tobacco Program 9
31-3 65.29 66.54 67.04 68.54
SOUTHEAST 41-4 51-5 63.79 60.29 65.79 61.29 66.29 61.79 68.04 62.04
21-2 61.25 61.75 63.50 65.00 66.50 67.25 68.00 68.00
42-4 61.54 63.04 63.04 63.29
Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. NORTH DELTA SOUTH DELTA 31-3 41-4 51-5 42-4 Staple 31-3 41-4 51-5 64.04 62.29 57.79 60.54 33 64.04 62.29 57.79 65.79 65.04 59.29 61.29 34 65.79 65.04 59.29 66.29 65.54 60.29 62.04 35 66.29 65.54 60.29 68.54 66.79 60.54 62.04 36 68.54 66.79 60.54
EAST TEXAS-OKLAHOMA 31-3 41-4 60.50 59.00 61.25 60.50 63.25 61.50 65.00 64.25 65.75 64.25 66.00 64.75 66.25 65.00 66.25 66.25
42-4 58.00 59.00 59.75 63.25 63.25 63.50 63.50 63.50
21-2 61.50 62.50 64.50 65.00 67.00 67.25 68.00 68.00
WEST TEXAS 31-3 41-4 60.00 58.25 61.75 60.25 63.50 61.00 64.25 64.25 65.75 64.25 66.50 65.00 67.00 65.50 67.25 66.25
42-4 57.25 59.00 60.00 62.00 62.75 64.50 64.50 64.50
Staple 26-31 32 33 34 35 36 37 38
21-2
66.19 72.44 75.94 77.44 79.69
42-4 60.54 61.29 62.04 62.29
21-2 60.04 62.29 66.54 67.14
SAN JOAQUIN VALLEY 31-3 41-4
64.69 70.94 74.44 75.69 77.44
62.04 64.04 64.84 64.94 64.94
DESERT SOUTHWEST 31-3 41-4 59.29 54.79 61.54 61.04 65.04 61.29 66.39 61.39
51-5 53.04 53.54 55.29 55.54
32-3
61.54 64.04 64.79 65.29 66.29
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
LANDED MILL QUOTATIONS - GROUP 201 MILL POINTS Cents per pound, even running lots, mike 35-49, strength 23.5 or more grams per tex, net weight, prompt shipment, delivered brokerage included. Quotations for group 200 mill points are slightly higher and for Alabama, Georgia and east Tennessee mills are slightly lower. 31-3
NQ NQ NQ
SE GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ--No quote available
NQ NQ NQ
42-4
31-3
NQ NQ NQ
NQ NQ NQ
DELTA GROWTH AREA 41-4 51-5
NQ NQ NQ
NQ NQ NQ
42-4
NQ NQ NQ
Staple 31 32 33 34 35 36
31-3 NQ NQ NQ NQ
TX-OK GROWTH AREA 41-4 32-3 NQ NQ NQ NQ NQ NQ NQ NQ
42-4 NQ NQ NQ NQ
SJV GROWTH AREA 31-3 41-4 51-5
NQ NQ NQ
NQ NQ NQ
NQ NQ NQ July 13, 2017
10
World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday 2016-2017 Description
June
June
June
June 30
July
July
9-15
16-22
23-29
July 6
7-13
14-20
Adjusted world price 1/
68.03
67.31
64.60
64.79
65.33
65.47
Coarse count adjustment
0.00
0.00
0.00
0.00
0.00
0.00
Loan Deficiency Payment (LDP)
0.00
0.00
0.00
0.00
0.00
0.00
1/ Color 41, leaf 4, staple 34, mike 35-36 & 43-49, strength readings of 26.0-28.9 grams per tex, length uniformity of 80.0-81.9 percent. Source: Farm Service Agency, USDA. ICE futures contract settlement, designated spot market average for color 41, leaf 4, staple 34, and Far Eastern 'A' Index Color 41, Leaf 4, Staple 34 Date
Far Eastern
Futures Settlement
7-Market
A Index 1/
Jul-17
Oct-17
Dec-17
Mar-18
May-18
Jul-18
Average
Current
Forward
July 07
75.29
69.75
68.59
68.38
68.74
69.11
67.29
84.60
78.40
July 10
-
67.72
67.29
67.19
67.64
68.12
65.26
84.80
78.65
July 11
-
68.15
67.67
67.27
67.72
68.24
65.64
83.45
77.50
July 12
-
68.13
67.27
66.94
67.41
67.93
65.49
83.70
77.95
July 13
-
66.54
66.37
66.16
66.75
67.33
63.92
83.20
77.65
1/ Far Eastern A Index furnished by Cotton Outlook of Liverpool. Color 41, Leaf 4, Staple 34 Cents per Pound
7-Market
Date
Southeast
North Delta
South Delta
East TX/OK
West Texas
Desert SW
SJ Valley
Average
July 07
69.00
68.25
68.25
68.00
68.00
64.25
65.25
67.29
July 10
66.97
66.22
66.22
66.00
66.00
62.22
63.22
65.26
July 11
67.40
66.65
66.65
66.25
66.25
62.65
63.65
65.64
July 12
67.38
66.63
66.63
65.75
65.75
62.63
63.63
65.49
July 13
65.79
65.04
65.04
64.25
64.25
61.04
62.04
63.92
Source: USDA, AMS, Cotton and Tobacco Program, Cotton Market News. Marketing Years Description
2015-2016
2016-2017
Through July 7, 2016
Through July 6, 2017
Week
Mkt. Year
Week
Outstanding sales
-
1,176,900
-
1,734,700
Exports
148,700
7,739,700
195,300
12,838,200
Total export commitments
Mkt. Year
-
8,916,600
-
14,572,900
New sales
55,800
-
23,400
-
Buy-backs and cancellations
600
-
10,400
-
55,200
-
13,000
-
113,700
2,052,800
152,600
4,596,500
Net sales Sales next marketing year
Net upland sales of 13,000 RB for 2016/2017--a marketing-year low--were down 93 percent from the previous week and from the prior 4-week average. Increases were reported for Mexico (5,300 RB), Turkey (3,300 RB), Vietnam (3,100 RB, including 2,400 RB switched from South Korea), India (2,800 RB), and Thailand (1,200 RB, including 400 RB switched from Japan). Reductions were reported for South Korea (2,600 RB), China (2,000 RB), and Japan (1,300 RB). For 2017/2018, net sales of 152,600 RB were reported primarily for China (62,100 RB), Bangladesh (25,100 RB), Vietnam (21,100 RB), and Turkey (21,100 RB). Exports of 195,300 RB were down 35 percent from the previous week and 25 percent from the prior 4-week average. The primary destinations were Vietnam (48,100 RB), Turkey (42,500 RB), Mexico (16,400 RB), China (16,300 RB), and India (15,800 RB). Net sales of Pima totaling 2,600 RB for 2016/2017 were up 48 percent from the previous week, but down 33 percent from the prior 4-week average. Increases for Japan (1,300 RB), South Korea (1,300 RB), and Turkey (300 RB), were partially offset by reductions for India (200 RB). For 2017/2018, net sales of 2,100 RB were reported for primarily for Hong Kong (1,400 RB) and Japan (600 RB). Exports of 7,400 RB were up 82 percent from the previous week, but down 15 percent from the prior 4-week average. The destinations were primarily Peru (2,000 RB), India (1,900 RB), Bangladesh (1,000 RB), and Japan (900 RB). Exports for Own Account: New exports for own account were reported to Indonesia (2,400 RB), Vietnam (2,200 RB), and India (500 RB). Exports to Vietnam (1,800 RB), Indonesia (900 RB), Thailand (600 RB), and India (500 RB were applied to new or outstanding sales. Decreases were reported for Indonesia (1,100 RB) and Bangladesh (400 RB). The current outstanding balance of 77,400 RB is for Indonesia (38,600 RB), Taiwan (14,400 RB), Vietnam (9,700 RB), India (5,500 RB), South Korea (4,600 RB), Bangladesh (2,800 RB), Thailand (1,300 RB), and Pakistan (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
July 13, 2017
11
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color 1
Leaf
Staple 44
46
48
1
138.50
146.50
147.75
2
138.25
146.25
147.50
3
130.50
137.50
137.75
1
138.25
146.25
147.50
2
138.00
146.00
147.25
3
130.25
137.25
137.50
4
120.25
127.75
128.00
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
27-29
-1400
30-32
-900
1
128.00
135.00
135.25
2
125.50
132.50
132.75
33-34
-400
3
124.25
131.25
131.50
35 & Above
0
4
115.25
122.25
122.50
5
99.25
105.75
106.00 Strength
6 4
1
109.00
116.00
117.00
2
108.75
115.75
116.25
Range
Diff.
3
108.50
115.50
115.50
35.4 & Below
-1350
4
103.50
110.50
110.50
35.5-36.4
-1100
5
92.25
99.25
99.25
36.5-37.4
-850
37.5 & Above
0
6 5
6
(Grams per Tex)
1 2
88.00
97.25
97.25
3
88.00
96.75
97.25
4
88.00
91.25
91.25
5
87.75
91.00
91.00
Extraneous Matter
6
Level
1
Prep
2
80.25
82.50
82.50
3
80.25
82.50
82.50
1 2
4
80.25
82.50
82.50
Other
5
80.00
82.25
82.25
1 2
Diff. -810 -1095 -715
6 79.50 81.75 81.75 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
July 13, 2017
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