Average spot cotton quotations were 70 points higher than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton 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 87.45 cents per pound for the week ended Thursday, March 20, 2014. The weekly average was up from 86.75 cents last week, and 85.13 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 87.09 cents on Monday, March 17 to a high of 88.02 cents on Tuesday, March 18.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 20, totaled 6,896 bales. This compares to 26,402 bales last week and 13,446 bales reported a year ago. Total spot transactions for the season were 1,239,432 bales, compared to 1,548,894 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 92.18 cents, compared to 91.68 cents last week.
Prices are in effect from March 21-27, 2014
Adjustment World Price (AWP) 75.29 ELS Competitiveness Payment 0.00
Loan Deficiency Payment (LDP) 0.00 Fine Count Adjustment 2012 Crop 0.25
Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2013 Crop 0.40
Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #6 FOR UPLAND COTTON March 20, 2014
The Department of Agriculture’s Commodity Credit Corporation announced a special import quota for upland cotton that permits importation of a quantity of upland cotton equal to one week’s domestic mill use. The quota will be established on March 27, 2014 allowing importation of 14,941,776 kilograms (68,627 bales) of upland cotton. Quota number 6 will be established as of March 27, and will apply to upland cotton purchased not later than June 24, 2014, and entered into the U.S. not later than September 22, 2014. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period October 2013 through December 2013, the most recent three months for which data are available. Future quotas, in addition to the quantity announced, will be established if price conditions warrant.
Regional Summaries
Southeastern Markets
Spot cotton trading was slow. Supplies were light. Demand was moderate. Producer offerings were light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers took advantage of higher ICE futures prices to forward contract a moderate volume of 2014-crop cotton.
Cool, overcast weather prevailed most of the period throughout areas from south Alabama to the Carolinas, with daytime highs in the upper 50s to upper 60s. Conditions remained damp as scattered rainfall brought persistent moisture during the week. Rainfall accumulations totaled one-quarter of an inch up to two inches in some areas. Similar weather prevailed in Virginia with colder temperatures in the 30s to 50s and snow flurries were observed in some areas. Fieldwork was limited due to soggy conditions. Local experts reported that the persistent, cold weather helped to significantly reduce some populations of overwintering insects. Producers considered planting options for the 2014 season and attended farm bill educational meetings hosted by the National Cotton Council.
South Central Markets
North Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers took advantage of higher ICE futures prices and booked a light volume of 2014-crop cotton.
Unsettled weather conditions prevailed during the week. Daytime high temperatures were in the mid40s to the upper 60s. Overnight lows were in the 30s and 40s. Scattered rain showers brought up to one inch of precipitation to some areas. Adequate topsoil moisture was reported in most other areas, according to the National Agricultural Statistics Service. Producers focused their attention on the new Farm Bill, with particular emphasis on the provisions for crop insurance.
South Delta
Spot cotton trading was inactive. Supplies and producer offerings were very light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers booked a light volume of 2014-crop.
Windy, rainy weather, and fluctuating temperatures prevailed during the week. Daytime high temperatures varied from the upper 40s to the low 70s. Overnight low temperatures were in the low 30s to mid-50s. Up to one inch of rain was reported. The moisture helped alleviate the abnormal dryness that existed throughout the region. More rainfall is needed to recharge ponds, lakes, and groundwater supplies. Producers attended informational meetings that helped explain the impact of the new Farm Bill on their particular operations.
Southwestern Markets
East Texas-Oklahoma
Spot cotton trading was slow. Supplies and demand were light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Cotton planting was around 20 percent completed in the Rio Grande Valley. Cooler temperatures and soggy fields delayed planting activities. Most fields will be planted late. Recent beneficial rain eased droughty conditions in the Coastal Bend, South, and Central Texas. In Kansas, no rain was received in the cotton-growing areas, and windy conditions depleted the soil moisture. Producers made decisions on which crop to plant: cotton or corn. Recent upswings in the corn market have encouraged a shift in acres toward corn at the expense of cotton. In Oklahoma, beneficial rainfall was received, but more is needed to improve the droughty conditions in the southwestern counties.
West Texas
Spot cotton trading was slow. Supplies and demand were light. Average local spot prices were higher. Trading of CCC-loan equities was inactive.
Strong winds with 50 mile per hour gusts delayed field activities for two days and depleted soil moisture. Producers returned to the fields after the winds calmed and plowed fields to keep the soil from blowing. Herbicides and fertilizers were applied by aerial applications and ground rigs. Industry members attended meetings hosted by the National Cotton Council of America to learn more about integrating The Agricultural Act of 2014 into farming operations.
Western Markets
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies, producer offerings, and demand were light. Average local prices were higher. No forward contracting or domestic mill activity was reported.
Temperatures were in the low to mid-80s in cotton-growing areas of Arizona. Planting continued in Yuma, Arizona and in Blythe, California. Sources reported approximately 80 percent of the crop was planted in these areas. Conditions were breezy with brief passing showers in New Mexico and El Paso, Texas early in the period. Field preparations continued. Local experts reported that water allocations will be received, but releases are set for June 1, too late for pre-irrigation use. Producers attended the National Cotton Council’s educational meetings for the Agricultural Act of 2014 commonly referred to as the Farm Bill.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local prices were higher. No forward contracting or domestic mill activity was reported.
Temperatures were in the high 70s to low 80s. Initial planting began in the southern SJV early in the reporting period. Producers attended the National Cotton Council’s educational meetings for the Agricultural Act of 2014. A big water rally was held in Fresno to urge for environmental law changes and construction of reservoirs.
American Pima (AP)
Spot cotton trading was slow. Supplies were light. Demand was moderate. Average local prices were higher. Domestic mill inquiries increased as reports of the San Joaquin Valley (SJV) drought made national news. No forward contracting was reported.
Sunny, warm conditions were the norm for the far west. Planting was virtually completed in Yuma, Arizona. Initial planting began in central Arizona and the SJV early in the reporting period. Ginning continued in the SJV. Producers attended the National Cotton Council’s educational meetings for the Agricultural Act of 2014.
Textile Mill Report
Domestic mill buyers purchased a moderate volume of color 42 and better, leaf 5 and better, and staple 34 and longer for April through September delivery. Mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 35 and longer for nearby delivery. Demand for ring-spun and open-end yarn was good. Most mills operated on a five to seven day schedule.
Demand through export channels was moderate, but tapered due to higher ICE futures prices. Agents for mills in Indonesia and Thailand inquired for a moderate volume of color 31 and 41, leaf 3 and 4, and staple 36 for nearby shipment. Representatives for mills in Turkey inquired for a moderate volume of USDA Green Card Class, color 42, leaf 4, and staple 34 and longer for nearby shipment. No sales were reported.
Regional Price Information
Southeastern Markets
.. A light volume of color 31 and 41, leaf 2-4, staple 35-37, mike 43-49, strength 28-30, and uniformity 80-82 sold for around 87.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
.. Light volume, even-running lots containing color mostly 41, leaf 2 and 3, staple 35, mike 35-49, strength 28-30, and uniformity 80-82 sold for around 86.75 cents, same terms as above.
.. Mixed lots containing color 53 and better, leaf 3-5, staple 36-38, mike 43-52, strength 28-32, and uniformity 80-83 sold for around 67.50 cents, same terms as above.
.. Mixed lots containing color 53 and better, leaf 2-5, staple 34-37, mike 43-52, strength 29-32, and uniformity 80-83 sold for around 84.50 cents, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
South Central Markets
.. North Delta Producers booked a light volume of 2014-crop cotton at 350 points off ICE December 2014 futures.
.. South Delta Producers booked a light volume of 2014-crop cotton at 350 points off ICE December 2014 futures.
Southwestern Markets
East Texas
.. In Oklahoma, a light volume of color 31 and better, leaf 2 and 3, staple 35 and longer, mike 37-40, strength 25-31, and uniformity 77-80 sold for around 84.00 cents per pound, FOB car/truck (compression charges not paid).
.. A light volume of color 42 and better, leaf 3 and better, staple 36 and longer, mike 29-44, strength 27-32, and uniformity 76-80 sold for around 81.50 cents, same terms as above.
.. In Texas, mixed lots containing a light volume of color 42 and better, leaf 3 and better, staple 34 and 35, mike 44-51, strength averaging 31.7, and uniformity averaging 82.3 sold for around 80.00 cents, FOB warehouse (compression charges not paid).
West Texas
.. A light volume of color 11 and 21, leaf 1 and 2, staple 33, mike 41-52, strength 27-31, and uniformity 78-81 sold for around 83.50 cents per pound, FOB car/truck (compression charges not paid).
.. A light volume of color 31 and better, leaf 1 and 2, staple 33, mike 36-49, strength 27-30, and uniformity 77-80 sold for around 81.00 cents, same terms as above.
.. A light volume of 2012-crop cotton, color 21 and 31, leaf 2 and 3, staple 36 and longer, mike 3546, strength 29-33, and uniformity 79-81 sold for around 86.00 cents, same terms as above.
.. A light volume of CCC-loan equities traded for 26 cents per pound.
Western Markets
Desert Southwest
.. No trading activity was reported.
San Joaquin Valley
.. A heavy volume of roller-ginned Upland color 31 and better, leaf 3 and better, and staple 39 and longer was fixed at around 115.00 cents per pound, UD free, FOB warehouse.
American Pima
.. A moderate volume of color 2, leaf 2, and staple 46 and longer sold for around 182.00 cents per pound, UD free, FOB warehouse.
