Weekly Cotton Market Review
Mp_cn812
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 34 March 30, 2018 Inside this Issue Market Overview Price Support Spot Quotations
ICE Futures
Average quotations were 85 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 78.34 cents per pound for the week ending Thursday, March 29, 2018. The weekly average was down from 79.19 last week, but up from 73.80 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 78.76 cents Tuesday, March 27 to a low of 77.49 cents Wednesday, March 28. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 29 totaled 25,617 bales. This compares to 33,642 bales reported last week and 13,405 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,697,617 bales compared to 1,508,984 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 81.46 cents, compared to 82.15 cents last week.
A Index Southeastern Textile Mill Report South Central Southwestern Western
Prospective Plantings Pima Quotations Cotton Market Reports
Subscribe to this report
Subscribe to all Cotton Market reports Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
Spot cotton trading was inactive. Supplies were moderate. Demand was moderate. Producer offerings were moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Mostly cloudy conditions prevailed across the lower Southeast with variable daytime high temperatures in the upper 60s to low 80s. Temperatures briefly dipped into the low 50s early week as a cold front entered the region and was accompanied by widespread rainfall. Day-to-day precipitation totals measured from trace amounts to around one-half of an inch of moisture in most areas. Moderate-to-severe drought conditions persist throughout south Alabama and much of central and south Georgia due to widespread 30-day precipitation deficits of 1-3 inches, according to the U.S. Drought Monitor. Sunny to cloudy conditions prevailed over the Carolinas and Virginia during the week. Daytime highs were mostly in the low to high 50s in the Carolinas during the week, with slightly colder temperatures observed in Virginia. Warmer conditions prevailed late week with temperatures in upper 70s to low 80s. Widespread rainfall brought moisture throughout much of North Carolina and portions of Virginia during the period. Weekly
No trading activity was reported.
accumulated rainfall totals measured from trace amounts to around 1 inch of moisture. Despite the wet weather, a patch of severe drought persists in the southern Piedmont region of Virginia. Moderate-to-severe drought also existed along much of coastal South Carolina, according to the U.S. Drought Monitor. Fieldwork was underway across the region as dry conditions allowed. Textile Mill Domestic mill buyers purchased a moderate volume of color 31, leaf 3, and staple 35 for May through June delivery. Mill buyers purchased a moderate volume of color 41 and 51, leaf 4 and better, and staple 35 for nearby delivery. Domestic mill buyers also inquired for a moderate volume of 2018-crop cotton, color 52 and better, leaf 5 and better, staple 34 and longer for first quarter through fourth quarter 2019 delivery. No sales were reported. Yarn demand was moderate. Most mills operated five to seven days. Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted styles of cotton.
Trading
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
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 slow. Thundershowers brought widespread rainfall to the region over the weekend and early week. Precipitation totals measured from trace amounts to around one-fourth of an inch, with slightly heavier weekly accumulations recorded as moderate showers returned late week. Seasonably warmer daytime high temperatures varied from the mid-60s to low 80s. Overnight lows varied from the upper 40s to upper 50s. Flood warnings were issued in many areas as rivers approached flood stage. Fieldwork was limited, but was underway in areas where soils were firm enough to support equipment. Producers considered planting options. Adequate-to-surplus soil moisture was reported throughout the region.
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. Partly cloudy to overcast conditions prevailed over the region during the period. A band of showers moved across the region late week bringing moderately heavy rainfall to some areas. Precipitation totals measured several inches with heavier totals received in some locales. Seasonably warm daytime high temperatures were observed in the upper 70s to low 80s. Overnight lows varied from the upper 40s to upper 60s. Producers applied fertilizer and herbicides ahead of the wet weather received mid-to-late week. Producers considered planting options. Adequate-to-surplus soil moisture conditions were observed throughout the region.
Trading North Delta A heavy volume CCC-loan equity traded for around 24.00 cents per pound. No trading activity was reported.
South Delta
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 lower. Producer interest in forward contracting was moderate and some producers held out for higher prices. Merchants offered contracts in south Texas. The contracts contained premiums for color 31, leaf 3, staple 36 and better. Trading of CCC-loan equities was active. Mill interest was good for May through October shipments. Foreign inquiries were moderate. Planting expanded in south Texas and continued in the Rio Grande Valley (RGV). Stands had begun to establish and were cited in the cotyledon stage to the 4 and 5 true leaf stages in the RGV, according to the Pest Cast newsletter published on March 23. A light amount of thrips damage was observed and aphid populations were present. Beneficial ladybugs were detected and their populations were expected to increase. Irrigation was underway. Planting had begun in south central Texas around rain showers. Some producers were finishing corn and sorghum planting before sowing cotton. Rainy conditions prevailed in the Blackland Prairies, interrupting fieldwork. Ginning continued in Kansas and in
Oklahoma. Most gins plan to offer pressing services through April, maybe longer. Modules were transported from fields to the gin yards. Some fields were plowed and stalks were shredded. West Texas Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were lower. Producer interest in forward contracting was light, due to droughty conditions. Trading of CCC-loan equities was active. Foreign inquiries were light to moderate. Widespread precipitation was received with daytime temperature highs in the mid-60s to upper 80s, and nighttime lows in the mid-40s to upper 50s. Most rainfall amounts varied from trace to 3 inches with heavier amounts of precipitation received in the Rolling Plains. Weeds have begun to grow in the warmer conditions. Winds continued to gust periodically and dry topsoil. Producers booked seed and prepped equipment ahead of planting. Irrigated fields were watered where needed. Ginning continued.
Trading
East Texas In Oklahoma, a light volume of color 21 and 31, leaf 3 and better, staple 38, mike 43-46, strength 28-30, and uniformity 80-81 sold for around 80.75 cents per pound, FOB car/truck (compression charges not paid). A mixed lot containing a light volume of mostly color 21 and 31, leaf 4 and better, mostly staple 36, mike 41-40, strength 27-30, uniformity 79-80, and 75 percent extraneous matter sold for around 77.25 cents, same terms as above. A light volume of mostly color 51, leaf 3 and 4, staple 34 and longer, mike 41-42, strength 28.9, uniformity 80-81, and 100 percent extraneous matter sold for around 74.25 cents, same terms as above. A heavy volume of CCC-loan equities traded for 12.50 to 20.50 cents.
West Texas A light volume of mostly color 31 and better, leaf 3 and better, staple 36 and longer, mike 35-40, strength 28-31, and uniformity 79-81 sold for around 80.50 cents per pound, FOB car/truck (compression charges not paid). A light volume of color 41 and better, leaf 4 and better, staple 35 and longer, mike 35-41, strength 28-31, and uniformity 78-82 sold for around 76.50 cents, same terms as above. 4
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
A heavy volume of color 23 and better, leaf 4 and better, staple 35 and longer, mike 22-28, strength 23-29, uniformity 75-80, and 25 percent extraneous matter sold for around 51.00 cents, same terms as above. A heavy volume of CCC-loan equities traded for 12.75 to 19.00 cents.
Rio Grande Valley Cotton
Photo Credits: Danielle Sekula, IPM Extension Agent, Texas A&M Agrilife Extension
2017 Crop Quality Quality Summary 2017-Crop Region Southeast South Central Southwest Far West
Bales 4,436,842
Color Grade 31
Leaf Grade 3
Trash 0.41
Mike 4.43
Staple 36.64
Strength 29.61
4,220,422 9,951,194 723,151
31 21 21
4 3 2
0.49 0.29 0.21
4.37 3.75 4.34
37.69 35.82 37.19
30.98 29.46 32.29
82.06 80.01 81.39
136 215 37
29.93 43.42
80.93 86.17
534 26
Uniformity 81.83
Number of Gins 146
United States Quality Summary 2017-Crop United States Upland United States Pima
19,331,609 675,809
31 1
3 2
0.36 0.26
4.06 4.13
36.46 49.09
For complete Quality reports click here.
5
Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Arizona cotton planting had reached 20 percent completed, according to the National Agricultural Statistics Service’s Crop Progress and Condition report published on March 26. Stands that had been replanted in Yuma, due to cool growing conditions, had emerged and were established. Approximately 5 to 10 percent of the acres in central Arizona had been planted and were up to a stand. Sowing activities were expected to expand after the Easter holiday. Fields were irrigated, and local reports indicated that water was plentiful. However, industry members monitored low levels in Lake Mead, which could affect irrigation the following season. Ginning was expected to be completed by March 31. Sowing activities were anticipated to launch in Safford, AZ around the middle of April. Planting was expected to begin the week of April 2 in El Paso, TX and in the cotton-growing areas of New Mexico. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Beneficial rainfall was received, which left fields soggy and unable to support machinery. Planting will begin after soils have firmed. Preliminary fieldwork was completed. Some ginning personnel made plans to attend the Southwest Ginners’ School.
American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Rows were built and preliminary fieldwork was completed in the San Joaquin Valley (SJV). Beneficial rainfall was received, which left fields soggy. Planting will begin after soils have firmed, according to local reports. Replanted stands were up in Yuma, AZ, and made good progress. The forecast shows daytime temperatures in the upper 80s and 90s in the near term. Sowing was expected to start midApril in the Safford area. Producers were eager to plant, but waited for soils to warm to optimal temperatures to ensure early plant development. Limited acreage had been planted in Pinal and Maricopa Counties and will expand the week of April 2. Ginning was expected to be finalized by March 31. In El Paso, TX, daytime temperature highs were in the upper 60s to upper 80s, and nighttime lows were in the low 50s to low 60s. Soil temperatures were not at the preferred planting levels. AP sowing in New Mexico will begin April 10. Planted acreage was expected to be the same as the previous season. Irrigation was underway in all AP growing areas, but limited in the SJV due to recent rainfall. As of March 29, the Visalia Classing Office had classed 675,809 samples this season for producers in Arizona, California, New Mexico, and Texas, according to the Quality of Cotton Classed by Classing Office released on March 30. A total of 26 gins submitted samples for classification during the 2017-crop year.
Trading No trading activity was reported No trading activity was reported No trading activity was reported
Desert Southwest San Joaquin Valley American Pima 6
Prospective Plantings
For complete Prospective Plantings report click here.
7
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 Feb 23
Mar
Mar
Mar
Mar
Mar 30
Mar 1
02-08
09-15
16-22
23-29
Apr 05
Adjusted world price 1/
69.69
73.09
74.13
75.12
73.92
72.88
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
0.51
0.56
0.71
0.87
0.99
1.00
Fine count adjustment 2017
0.66
0.71
0.86
1.02
1.14
1.15
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 March 23, 2017
Through March 22, 2018
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
Exports
394,000
4,431,000
-
6,988,400
7,874,100
438,400
7,517,000
-
12,305,100
-
14,505,400
New sales
414,400
-
324,000
-
Buy-backs and cancellations
22,100
-
19,800
-
392,300
-
304,300
-
84,300
1,705,100
62,100
2,779,100
Total export commitments
Net sales Sales next marketing year
Net sales of 304,300 running bales for 2017/2018 were down 10 percent from the previous week and 9 percent from the prior 4-week average. Increases were reported for Vietnam (96,100 RB, including 400 RB switched from Japan and decreases of 900 RB), Indonesia (82,600 RB, including 900 RB switched from Japan, 300 RB switched from China, and decreases of 500 RB), China (33,900 RB, including 13,200 RB switched from Turkey, 900 RB switched from Hong Kong, and decreases of 2,200 RB), Thailand (21,200 RB, including 300 RB switched from Japan and decreases of 100 RB), and Bangladesh (17,700 RB). Reductions were reported primarily for Mexico (3,400 RB), India (3,300 RB), and Japan (2,800 RB). For 2018/2019, net sales of 62,100 RB were primarily for Thailand (25,100 RB), China (15,400 RB), and Vietnam (10,100 RB). Exports of 438,400 RB were up 3 percent from the previous week and 7 percent from the prior 4-week average. The primary destinations were Vietnam (79,700 RB), China (58,500 RB), Turkey (57,400 RB), Pakistan (42,100 RB), and Indonesia (41,900 RB). Net sales of Pima totaling 5,200 RB for 2017/2018 were up 28 percent from the previous week, but down 20 percent from the prior 4-week average. Increases were primarily reported for China (2,000 RB), Peru (1,000 RB), and India (1,000 RB). For 2018/2019, net sales of 1,600 RB were reported for India. Exports of 14,800 RB were down 25 percent from the previous week and 30 percent from the prior 4-week average. The primary destinations were India (6,700 RB), China (4,400 RB), Peru (2,100 RB), and Indonesia (1,000 RB). Optional Origin Sales: For 2017/2018, the current optional origin outstanding balance is 16,500 RB, all Indonesia. Exports for Own Account: New exports for own account totaling 1,400 RB were reported to Indonesia. Exports to Indonesia (100 RB) were applied to new or outstanding sales. The current outstanding balance of 20,300 RB is for Vietnam (10,300 RB), Indonesia (5,700 RB), China (3,800 RB), and Bangladesh (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
March 29, 2018
8
Number of Bales in Certificated Stocks Stocks as of 3-29-2018
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
9,355
0
0
Galveston, TX
14,121
0
0
Greenville, SC
37
0
0
Houston, TX
7
0
0
Memphis, TN
33,704
0
0
Total
57,224
0
0
Delivery Points
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 81.46 83.21 84.21 85.71
SOUTHEAST 41-4 51-5 79.96 76.46 81.96 77.46 83.46 77.96 83.71 78.21 21-2 73.00 73.50 75.25 77.50 78.75 80.25 80.50 80.75
42-4 77.71 79.21 79.21 79.46
31-3 79.46 81.21 82.21 84.46
EAST TEXAS-OKLAHOMA 31-3 41-4 72.25 70.75 73.00 72.25 75.00 73.25 76.50 76.00 77.75 76.00 79.00 77.00 79.50 77.25 79.75 79.75
NORTH DELTA 41-4 51-5 77.71 73.21 80.46 75.21 80.46 75.71 81.71 75.96 42-4 69.75 70.75 71.50 75.00 75.00 75.75 75.75 75.75
21-2 73.00 74.00 76.00 76.25 78.25 78.75 79.25 79.50
42-4 75.96 76.71 77.46 77.46
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 71.00 69.25 72.75 71.25 74.75 72.00 75.50 75.25 77.25 75.25 78.25 76.25 78.75 76.50 79.00 79.00
42-4 68.50 70.25 71.25 73.25 74.00 75.75 75.75 75.75
SOUTH DELTA 41-4 51-5 77.71 73.21 80.46 75.21 80.46 75.71 81.71 75.96
31-3 79.46 81.21 82.21 84.46
Staple 26-31 32 33 34 35 36 37 38
21-2
81.11 87.36 90.86 92.36 94.61
42-4 75.96 76.71 77.46 77.71
21-2 75.46 77.71 81.96 82.91
SAN JOAQUIN VALLEY 31-3 41-4
79.61 85.86 89.36 90.61 92.36
76.96 78.96 79.76 79.86 79.86
DESERT SOUTHWEST 31-3 41-4 74.71 70.21 76.96 76.46 80.46 76.71 81.91 76.81
51-5 68.46 68.96 70.71 70.96
32-3
76.46 78.96 79.71 80.21 81.21
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 -2000 -2000 -1275 -925 -700 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 -2000 -2000 -1275 -925 -700 0 0 0 -225 -350
SW -1350 -1150 -1050 -650 -450 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 -125 -75 78 -95 -60 79 -80 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. -1783 -1346 -1004 -632 -393 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. -97 -83 -71 -4 0 7 29 37 47 57
March 29, 2018
9
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color 1
Leaf
Staple 44
46
48
1
139.00
147.75
150.25
2
138.75
147.50
150.00
3
131.00
138.75
140.25
1
138.75
147.50
150.00
2
138.50
147.25
149.75
3
130.75
138.50
140.00
4
120.75
129.00
130.50
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on December 22, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
27-29
-1400
1
128.50
136.25
137.75
30-32
-900
2
126.00
133.75
135.25
33-34
-400
3
124.75
132.50
134.00
35 & Above
0
4
115.75
123.50
125.00
5
99.75
107.00
108.50 Strength
6 4
1
109.50
117.25
119.50
2
109.25
117.00
118.75
Range
Diff.
3
109.00
116.75
118.00
35.4 & Below
-1350
4
104.00
111.75
113.00
35.5-36.4
-1100
5
92.75
100.50
101.75
36.5-37.4
-850
37.5 & Above
0
6 5
6
(Grams per Tex)
1 2
88.50
98.50
99.75
3
88.50
98.00
99.75
4
88.50
92.50
93.75
5
88.25
92.25
93.50
Extraneous Matter
6
Level
1
Prep
2
80.75
83.75
85.00
3
80.75
83.75
85.00
1 2
4
80.75
83.75
85.00
Other
5
80.50
83.50
84.75
Diff. -810 -1095
1 -715 2 6 80.00 83.00 84.25 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
March 29, 2018
10
Weekly Cotton Market Review
Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN 38133 901.384.3016
Vol. 99 No. 34 March 30, 2018 Inside this Issue Market Overview Price Support Spot Quotations
ICE Futures
Average quotations were 85 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 78.34 cents per pound for the week ending Thursday, March 29, 2018. The weekly average was down from 79.19 last week, but up from 73.80 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 78.76 cents Tuesday, March 27 to a low of 77.49 cents Wednesday, March 28. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 29 totaled 25,617 bales. This compares to 33,642 bales reported last week and 13,405 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,697,617 bales compared to 1,508,984 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 81.46 cents, compared to 82.15 cents last week.
A Index Southeastern Textile Mill Report South Central Southwestern Western
Prospective Plantings Pima Quotations Cotton Market Reports
Subscribe to this report
Subscribe to all Cotton Market reports Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook
Southeastern Markets Regional Summary
Danny Pino Macon, GA [email protected]
Spot cotton trading was inactive. Supplies were moderate. Demand was moderate. Producer offerings were moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Mostly cloudy conditions prevailed across the lower Southeast with variable daytime high temperatures in the upper 60s to low 80s. Temperatures briefly dipped into the low 50s early week as a cold front entered the region and was accompanied by widespread rainfall. Day-to-day precipitation totals measured from trace amounts to around one-half of an inch of moisture in most areas. Moderate-to-severe drought conditions persist throughout south Alabama and much of central and south Georgia due to widespread 30-day precipitation deficits of 1-3 inches, according to the U.S. Drought Monitor. Sunny to cloudy conditions prevailed over the Carolinas and Virginia during the week. Daytime highs were mostly in the low to high 50s in the Carolinas during the week, with slightly colder temperatures observed in Virginia. Warmer conditions prevailed late week with temperatures in upper 70s to low 80s. Widespread rainfall brought moisture throughout much of North Carolina and portions of Virginia during the period. Weekly
No trading activity was reported.
accumulated rainfall totals measured from trace amounts to around 1 inch of moisture. Despite the wet weather, a patch of severe drought persists in the southern Piedmont region of Virginia. Moderate-to-severe drought also existed along much of coastal South Carolina, according to the U.S. Drought Monitor. Fieldwork was underway across the region as dry conditions allowed. Textile Mill Domestic mill buyers purchased a moderate volume of color 31, leaf 3, and staple 35 for May through June delivery. Mill buyers purchased a moderate volume of color 41 and 51, leaf 4 and better, and staple 35 for nearby delivery. Domestic mill buyers also inquired for a moderate volume of 2018-crop cotton, color 52 and better, leaf 5 and better, staple 34 and longer for first quarter through fourth quarter 2019 delivery. No sales were reported. Yarn demand was moderate. Most mills operated five to seven days. Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted styles of cotton.
Trading
2
South Central Markets Regional Summary
Jeff Carnahan Memphis, TN [email protected]
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 slow. Thundershowers brought widespread rainfall to the region over the weekend and early week. Precipitation totals measured from trace amounts to around one-fourth of an inch, with slightly heavier weekly accumulations recorded as moderate showers returned late week. Seasonably warmer daytime high temperatures varied from the mid-60s to low 80s. Overnight lows varied from the upper 40s to upper 50s. Flood warnings were issued in many areas as rivers approached flood stage. Fieldwork was limited, but was underway in areas where soils were firm enough to support equipment. Producers considered planting options. Adequate-to-surplus soil moisture was reported throughout the region.
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. Partly cloudy to overcast conditions prevailed over the region during the period. A band of showers moved across the region late week bringing moderately heavy rainfall to some areas. Precipitation totals measured several inches with heavier totals received in some locales. Seasonably warm daytime high temperatures were observed in the upper 70s to low 80s. Overnight lows varied from the upper 40s to upper 60s. Producers applied fertilizer and herbicides ahead of the wet weather received mid-to-late week. Producers considered planting options. Adequate-to-surplus soil moisture conditions were observed throughout the region.
Trading North Delta A heavy volume CCC-loan equity traded for around 24.00 cents per pound. No trading activity was reported.
South Delta
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 lower. Producer interest in forward contracting was moderate and some producers held out for higher prices. Merchants offered contracts in south Texas. The contracts contained premiums for color 31, leaf 3, staple 36 and better. Trading of CCC-loan equities was active. Mill interest was good for May through October shipments. Foreign inquiries were moderate. Planting expanded in south Texas and continued in the Rio Grande Valley (RGV). Stands had begun to establish and were cited in the cotyledon stage to the 4 and 5 true leaf stages in the RGV, according to the Pest Cast newsletter published on March 23. A light amount of thrips damage was observed and aphid populations were present. Beneficial ladybugs were detected and their populations were expected to increase. Irrigation was underway. Planting had begun in south central Texas around rain showers. Some producers were finishing corn and sorghum planting before sowing cotton. Rainy conditions prevailed in the Blackland Prairies, interrupting fieldwork. Ginning continued in Kansas and in
Oklahoma. Most gins plan to offer pressing services through April, maybe longer. Modules were transported from fields to the gin yards. Some fields were plowed and stalks were shredded. West Texas Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were lower. Producer interest in forward contracting was light, due to droughty conditions. Trading of CCC-loan equities was active. Foreign inquiries were light to moderate. Widespread precipitation was received with daytime temperature highs in the mid-60s to upper 80s, and nighttime lows in the mid-40s to upper 50s. Most rainfall amounts varied from trace to 3 inches with heavier amounts of precipitation received in the Rolling Plains. Weeds have begun to grow in the warmer conditions. Winds continued to gust periodically and dry topsoil. Producers booked seed and prepped equipment ahead of planting. Irrigated fields were watered where needed. Ginning continued.
Trading
East Texas In Oklahoma, a light volume of color 21 and 31, leaf 3 and better, staple 38, mike 43-46, strength 28-30, and uniformity 80-81 sold for around 80.75 cents per pound, FOB car/truck (compression charges not paid). A mixed lot containing a light volume of mostly color 21 and 31, leaf 4 and better, mostly staple 36, mike 41-40, strength 27-30, uniformity 79-80, and 75 percent extraneous matter sold for around 77.25 cents, same terms as above. A light volume of mostly color 51, leaf 3 and 4, staple 34 and longer, mike 41-42, strength 28.9, uniformity 80-81, and 100 percent extraneous matter sold for around 74.25 cents, same terms as above. A heavy volume of CCC-loan equities traded for 12.50 to 20.50 cents.
West Texas A light volume of mostly color 31 and better, leaf 3 and better, staple 36 and longer, mike 35-40, strength 28-31, and uniformity 79-81 sold for around 80.50 cents per pound, FOB car/truck (compression charges not paid). A light volume of color 41 and better, leaf 4 and better, staple 35 and longer, mike 35-41, strength 28-31, and uniformity 78-82 sold for around 76.50 cents, same terms as above. 4
Southwestern Markets Regional Summary
Jane Byers-Angle Lubbock, TX [email protected]
A heavy volume of color 23 and better, leaf 4 and better, staple 35 and longer, mike 22-28, strength 23-29, uniformity 75-80, and 25 percent extraneous matter sold for around 51.00 cents, same terms as above. A heavy volume of CCC-loan equities traded for 12.75 to 19.00 cents.
Rio Grande Valley Cotton
Photo Credits: Danielle Sekula, IPM Extension Agent, Texas A&M Agrilife Extension
2017 Crop Quality Quality Summary 2017-Crop Region Southeast South Central Southwest Far West
Bales 4,436,842
Color Grade 31
Leaf Grade 3
Trash 0.41
Mike 4.43
Staple 36.64
Strength 29.61
4,220,422 9,951,194 723,151
31 21 21
4 3 2
0.49 0.29 0.21
4.37 3.75 4.34
37.69 35.82 37.19
30.98 29.46 32.29
82.06 80.01 81.39
136 215 37
29.93 43.42
80.93 86.17
534 26
Uniformity 81.83
Number of Gins 146
United States Quality Summary 2017-Crop United States Upland United States Pima
19,331,609 675,809
31 1
3 2
0.36 0.26
4.06 4.13
36.46 49.09
For complete Quality reports click here.
5
Western Markets Regional Summary
Maria Townsend Visalia, CA [email protected]
Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Arizona cotton planting had reached 20 percent completed, according to the National Agricultural Statistics Service’s Crop Progress and Condition report published on March 26. Stands that had been replanted in Yuma, due to cool growing conditions, had emerged and were established. Approximately 5 to 10 percent of the acres in central Arizona had been planted and were up to a stand. Sowing activities were expected to expand after the Easter holiday. Fields were irrigated, and local reports indicated that water was plentiful. However, industry members monitored low levels in Lake Mead, which could affect irrigation the following season. Ginning was expected to be completed by March 31. Sowing activities were anticipated to launch in Safford, AZ around the middle of April. Planting was expected to begin the week of April 2 in El Paso, TX and in the cotton-growing areas of New Mexico. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Beneficial rainfall was received, which left fields soggy and unable to support machinery. Planting will begin after soils have firmed. Preliminary fieldwork was completed. Some ginning personnel made plans to attend the Southwest Ginners’ School.
American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Rows were built and preliminary fieldwork was completed in the San Joaquin Valley (SJV). Beneficial rainfall was received, which left fields soggy. Planting will begin after soils have firmed, according to local reports. Replanted stands were up in Yuma, AZ, and made good progress. The forecast shows daytime temperatures in the upper 80s and 90s in the near term. Sowing was expected to start midApril in the Safford area. Producers were eager to plant, but waited for soils to warm to optimal temperatures to ensure early plant development. Limited acreage had been planted in Pinal and Maricopa Counties and will expand the week of April 2. Ginning was expected to be finalized by March 31. In El Paso, TX, daytime temperature highs were in the upper 60s to upper 80s, and nighttime lows were in the low 50s to low 60s. Soil temperatures were not at the preferred planting levels. AP sowing in New Mexico will begin April 10. Planted acreage was expected to be the same as the previous season. Irrigation was underway in all AP growing areas, but limited in the SJV due to recent rainfall. As of March 29, the Visalia Classing Office had classed 675,809 samples this season for producers in Arizona, California, New Mexico, and Texas, according to the Quality of Cotton Classed by Classing Office released on March 30. A total of 26 gins submitted samples for classification during the 2017-crop year.
Trading No trading activity was reported No trading activity was reported No trading activity was reported
Desert Southwest San Joaquin Valley American Pima 6
Prospective Plantings
For complete Prospective Plantings report click here.
7
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 Feb 23
Mar
Mar
Mar
Mar
Mar 30
Mar 1
02-08
09-15
16-22
23-29
Apr 05
Adjusted world price 1/
69.69
73.09
74.13
75.12
73.92
72.88
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
0.51
0.56
0.71
0.87
0.99
1.00
Fine count adjustment 2017
0.66
0.71
0.86
1.02
1.14
1.15
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 March 23, 2017
Through March 22, 2018
Week
Mkt. Year
Week
Mkt. Year
Outstanding sales
-
Exports
394,000
4,431,000
-
6,988,400
7,874,100
438,400
7,517,000
-
12,305,100
-
14,505,400
New sales
414,400
-
324,000
-
Buy-backs and cancellations
22,100
-
19,800
-
392,300
-
304,300
-
84,300
1,705,100
62,100
2,779,100
Total export commitments
Net sales Sales next marketing year
Net sales of 304,300 running bales for 2017/2018 were down 10 percent from the previous week and 9 percent from the prior 4-week average. Increases were reported for Vietnam (96,100 RB, including 400 RB switched from Japan and decreases of 900 RB), Indonesia (82,600 RB, including 900 RB switched from Japan, 300 RB switched from China, and decreases of 500 RB), China (33,900 RB, including 13,200 RB switched from Turkey, 900 RB switched from Hong Kong, and decreases of 2,200 RB), Thailand (21,200 RB, including 300 RB switched from Japan and decreases of 100 RB), and Bangladesh (17,700 RB). Reductions were reported primarily for Mexico (3,400 RB), India (3,300 RB), and Japan (2,800 RB). For 2018/2019, net sales of 62,100 RB were primarily for Thailand (25,100 RB), China (15,400 RB), and Vietnam (10,100 RB). Exports of 438,400 RB were up 3 percent from the previous week and 7 percent from the prior 4-week average. The primary destinations were Vietnam (79,700 RB), China (58,500 RB), Turkey (57,400 RB), Pakistan (42,100 RB), and Indonesia (41,900 RB). Net sales of Pima totaling 5,200 RB for 2017/2018 were up 28 percent from the previous week, but down 20 percent from the prior 4-week average. Increases were primarily reported for China (2,000 RB), Peru (1,000 RB), and India (1,000 RB). For 2018/2019, net sales of 1,600 RB were reported for India. Exports of 14,800 RB were down 25 percent from the previous week and 30 percent from the prior 4-week average. The primary destinations were India (6,700 RB), China (4,400 RB), Peru (2,100 RB), and Indonesia (1,000 RB). Optional Origin Sales: For 2017/2018, the current optional origin outstanding balance is 16,500 RB, all Indonesia. Exports for Own Account: New exports for own account totaling 1,400 RB were reported to Indonesia. Exports to Indonesia (100 RB) were applied to new or outstanding sales. The current outstanding balance of 20,300 RB is for Vietnam (10,300 RB), Indonesia (5,700 RB), China (3,800 RB), and Bangladesh (500 RB).
Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding.
March 29, 2018
8
Number of Bales in Certificated Stocks Stocks as of 3-29-2018
Awaiting Review
Non-Rain Grown Cotton
Dallas/FT. Worth, TX
9,355
0
0
Galveston, TX
14,121
0
0
Greenville, SC
37
0
0
Houston, TX
7
0
0
Memphis, TN
33,704
0
0
Total
57,224
0
0
Delivery Points
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 81.46 83.21 84.21 85.71
SOUTHEAST 41-4 51-5 79.96 76.46 81.96 77.46 83.46 77.96 83.71 78.21 21-2 73.00 73.50 75.25 77.50 78.75 80.25 80.50 80.75
42-4 77.71 79.21 79.21 79.46
31-3 79.46 81.21 82.21 84.46
EAST TEXAS-OKLAHOMA 31-3 41-4 72.25 70.75 73.00 72.25 75.00 73.25 76.50 76.00 77.75 76.00 79.00 77.00 79.50 77.25 79.75 79.75
NORTH DELTA 41-4 51-5 77.71 73.21 80.46 75.21 80.46 75.71 81.71 75.96 42-4 69.75 70.75 71.50 75.00 75.00 75.75 75.75 75.75
21-2 73.00 74.00 76.00 76.25 78.25 78.75 79.25 79.50
42-4 75.96 76.71 77.46 77.46
Staple 33 34 35 36
WEST TEXAS 31-3 41-4 71.00 69.25 72.75 71.25 74.75 72.00 75.50 75.25 77.25 75.25 78.25 76.25 78.75 76.50 79.00 79.00
42-4 68.50 70.25 71.25 73.25 74.00 75.75 75.75 75.75
SOUTH DELTA 41-4 51-5 77.71 73.21 80.46 75.21 80.46 75.71 81.71 75.96
31-3 79.46 81.21 82.21 84.46
Staple 26-31 32 33 34 35 36 37 38
21-2
81.11 87.36 90.86 92.36 94.61
42-4 75.96 76.71 77.46 77.71
21-2 75.46 77.71 81.96 82.91
SAN JOAQUIN VALLEY 31-3 41-4
79.61 85.86 89.36 90.61 92.36
76.96 78.96 79.76 79.86 79.86
DESERT SOUTHWEST 31-3 41-4 74.71 70.21 76.96 76.46 80.46 76.71 81.91 76.81
51-5 68.46 68.96 70.71 70.96
32-3
76.46 78.96 79.71 80.21 81.21
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 -2000 -2000 -1275 -925 -700 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 -2000 -2000 -1275 -925 -700 0 0 0 -225 -350
SW -1350 -1150 -1050 -650 -450 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 -125 -75 78 -95 -60 79 -80 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. -1783 -1346 -1004 -632 -393 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. -97 -83 -71 -4 0 7 29 37 47 57
March 29, 2018
9
American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/
AMERICAN PIMA SPOT QUOTATIONS Color 1
Leaf
Staple 44
46
48
1
139.00
147.75
150.25
2
138.75
147.50
150.00
3
131.00
138.75
140.25
1
138.75
147.50
150.00
2
138.50
147.25
149.75
3
130.75
138.50
140.00
4
120.75
129.00
130.50
4
The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on December 22, 2017.
5 6 2
3
Mike Range
Diff.
5
26 & Below
-1900
6
27-29
-1400
1
128.50
136.25
137.75
30-32
-900
2
126.00
133.75
135.25
33-34
-400
3
124.75
132.50
134.00
35 & Above
0
4
115.75
123.50
125.00
5
99.75
107.00
108.50 Strength
6 4
1
109.50
117.25
119.50
2
109.25
117.00
118.75
Range
Diff.
3
109.00
116.75
118.00
35.4 & Below
-1350
4
104.00
111.75
113.00
35.5-36.4
-1100
5
92.75
100.50
101.75
36.5-37.4
-850
37.5 & Above
0
6 5
6
(Grams per Tex)
1 2
88.50
98.50
99.75
3
88.50
98.00
99.75
4
88.50
92.50
93.75
5
88.25
92.25
93.50
Extraneous Matter
6
Level
1
Prep
2
80.75
83.75
85.00
3
80.75
83.75
85.00
1 2
4
80.75
83.75
85.00
Other
5
80.50
83.50
84.75
Diff. -810 -1095
1 -715 2 6 80.00 83.00 84.25 -1035 1/ Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported.
March 29, 2018
10
