Spot cotton quotations were 17 points higher than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton and Tobacco Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets averaged 62.53 cents per pound for the week ended Thursday, July 23, 2015.
The weekly average was up from 62.36 cents last week, but lower than the 69.61 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 62.21 cents Tuesday, July 21, to a high of 62.73 cents Thursday, July 23. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 23, totaled 12,875 bales.
This compares to 342 bales reported last week and 678 spot transactions reported a year ago. Total spot transactions for the season were 2,103,629 bales, compared to 1,305,567 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 65.92 cents, compared to 65.30 cents last week.
Prices are in effect from July 24-July 30, 2015
- Adjustment World Price (AWP) – 50.02
- ELS Competitiveness Payment – 0.00
- Loan Deficiency Payment (LDP) – 1.98
- Fine Count Adjustment 2014 Crop – 0.58
- Coarse Count Adjustment (CCA) – 0.00
- Fine Count Adjustment 2015 Crop – 0.53
Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #24 FOR UPLAND COTTON July 23, 2015
The Department of Agriculture’s Commodity Credit Corporation today 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 July 30, 2015, allowing importation of 14,667,427 kilograms (67,367 bales) of upland cotton. Quota number 24 will be established as of July 30, 2015, and will apply to upland cotton purchased not later than October 27, 2015, and entered into the U.S. not later than January 25, 2016.
The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period November 2014 through January 2015, 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 and producer offerings were light. Demand was moderate. Average local spot prices were steady. Trading of CCC-loan equities was inactive.
Mostly sunny, hot conditions prevailed throughout the region with daytime high temperatures in the low-to-high 90s, with some areas rising into the low 100s mid-week. Afternoon pop-up thunderstorms brought light scattered rainfall to localized areas across the southeast throughout the period, but many areas missed significant rainfall. Weekly accumulated precipitation totals measured from one to four inches along the Gulf Coast and portions of eastern North Carolina, with lesser totals observed in South Carolina and Virginia.
Producers welcomed the moisture, which helped cool the intense heat indices and brought relief to stressed crops. Center pivots were operating in irrigated fields. Producers applied plant growth regulators to fields in areas that have received plentiful moisture in recent weeks. Boll-setting was underway across the region.
The focus of scouting has turned to stink bugs and treatments had begun in some areas. Pressure from aphids continued to be reported in some areas of Alabama, and fields were sprayed.
Squaring neared completion. According to the National Agricultural Statistics Service Crop Progress report released on July 20, in Alabama and Georgia boll-setting was at 54 percent, 43 in North Carolina, 33 in South Carolina, and 23 percent completed in Virginia.
South Central Markets
North Delta
Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Hot and uncomfortably humid conditions dominated the weather pattern. Temperatures in the high 90s early week and a series of thunderstorms resulted in extremely humid conditions. Up to two inches of precipitation was reported in some areas. The crop responded dramatically to the heat and rainfall, particularly in Arkansas. Producers applied plant growth regulators as needed to control excessive vegetative growth. Insect pressure from plant bugs and stink bugs was building steadily. Some producers made multiple applications to control outbreaks.
According to the National Agricultural Statistics Service, boll-setting was ahead of the five-year average in Arkansas, but lagged behind in Missouri and Tennessee. The crop was in mostly good condition.
South Delta
Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Hot, humid conditions dominated the weather pattern. Temperatures in the high 90s and a series of thunderstorms resulted in extremely humid conditions. Nearly two inches of precipitation were reported in some areas. The crop responded well to the heat and rainfall, especially in Mississippi. Producers applied plant growth regulators as needed to control excessive vegetative growth. Insect pressure from plant bugs was building steadily. Producers made applications of crop protection chemicals to control outbreaks.
According to the National Agricultural Statistics Service, boll-setting was behind the five-year average in Louisiana, but ahead in Mississippi. The crop was in mostly good condition.
Southwestern Markets
East Texas-Oklahoma
Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were firm. Trading of CCC-loan equities was slow. Foreign mill inquiries were light.
The first 2015-crop bale was delivered to a gin in the Rio Grande Valley on July 16. Harvesting was isolated and not expected to increase until early August. Producers prepared to apply defoliants. Approximately 30 to 50 percent of the fields had open bolls, according to the Texas A&M Agrilife Extension Pest Cast newsletter released on July 17.
Producers readied harvesting equipment, and ginning operations conducted maintenance in southern Texas. Fields need a timely rain in the Coastal Bend. Hot, dry conditions prevailed in the Blackland Prairies and cotton matured exponentially.
Kansas received one and one-half to three inches of rainfall that helped advance the crop. Fields had begun to bloom.
In Oklahoma, irrigation water was released from the Lugert-Altus irrigation district for the first time since 2011, according to the Oklahoma State University Cotton Comments released on July 17. Industry was encouraged. Recent rainfall helped the fields to progress.
West Texas
Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light. Average local spot prices were firm. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.
Intermittent storms brought one-half to four inches of beneficial rainfall to isolated areas in the panhandle. Reports indicated that 200 acres received hail damage. Fleahoppers, lygus, and grasshopper populations increased and some fields were treated. Fields were squaring and had begun to bloom. Some producers initiated irrigation systems to water the crop for the first time this season. Cultivators were used for weed escapes and spraying herbicide was active. Hoe crews were in the fields helping to control weeds. Meetings were attended.
Western Markets
Desert Southwest (DSW)
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 light.
Temperatures were in the low 100s. Remnants of Tropical Storm Dolores produced scattered showers in Arizona early in the reporting period. Approximately one-third of an inch of precipitation was recorded. In eastern Arizona, storms caused flooding of washes. No damage to cotton fields was reported. The crop made good progress in Arizona.
Afternoon thunderstorms produced one-third of an inch of moisture late in the period for New Mexico and El Paso, Texas. The organic crop in New Mexico made good progress. Overall, cotton continued to make progress in the region.
San Joaquin Valley (SJV)
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.
Remnants of Tropical Storm Dolores along with monsoonal moisture produced lightning and thunderstorms in California early in the reporting period. Over 100-year old July rainfall records were smashed as several cities in the SJV recorded precipitation amounts of one-third of an inch. For many areas of California, this was considered the wettest July ever. Temperatures were in the mid-90s for most of the week. The crop made good progress.
American Pima (AP)
Spot cotton trading was inactive. Supplies and demand were moderate. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Temperatures were mostly in the mid-90s to low 100s for the region. Rainfall was received in the far west due to a combination of monsoonal moisture and thunderstorms produced from the remnants of Tropical Storm Dolores. Flooding was reported in eastern Arizona. The crop advanced to cut-out stage in Yuma, Arizona. Blooming continued in central Arizona and the San Joaquin Valley.
Sources reported that blooming and boll setting progressed normally in New Mexico and El Paso, Texas.
Overall, the crop made good progress in the region.
Textile Mill
Domestic mill buyers purchased a light volume of color 41, leaf 3, and staple 35 for August/September delivery. Mill buyers also bought a moderate volume of 2015-crop cotton, color 32, leaf 3, and staple 34 for October through December delivery. Mill buyers inquired for a moderate volume of 2015-crop cotton, color 42 and better, leaf 5 and better, and staple 33 and longer for November 2015 through December 2016 delivery. No additional sales were reported.
Some mills reported that the majority of their raw cotton needs were covered through March of 2016, but the bulk of their requirements had yet to be booked for the remainder of the year. Yard demand remained strong and most mills operated five to seven days.
Inquiries through export channels were moderate. Agents throughout the Far East inquired daily for any discounted or low-grade styles of cotton.
Regional Price Information
Southeastern Markets
- A moderate volume of color 31 and 41, leaf 4 and better, staple 34, mike 50 and higher, strength mostly 26-29, and uniformity 80-82 sold for 61.75 to 62.75 cents per pound, FOB car/truck (Rule 5, compression charges paid).
South Central Markets
North Delta
- A moderate volume of color 41 and better, leaf 4 and better, staple 34, mike 50-52, strength 26-32, and uniformity 79-82 traded at around 62.75 cents per pound, FOB car/truck (Rule 5, compression charges paid).
South Delta
- A light volume of mostly color 51 and better, leaf 3 and better, staple 33 and longer, mike 50-52, strength 25-32, and uniformity 78-83 traded at around 61.50 cents per pound, FOB car/truck (Rule 5, compression charges paid).
- A moderate volume of color 41 and better, leaf 4 and better, staple 34, mike 50-52, strength 26-32, and uniformity 79-82 traded at around 62.75 cents, same terms as above.
Southwestern Markets
East Texas
- In Oklahoma and Texas, mixed lots containing a moderate volume of color 41 and better, mostly leaf 4 and 5, staple 36 and longer, mike averaging 42.5, strength averaging 30.6, uniformity averaging 81.3, and 75 percent extraneous matter sold for around 52.25 cents per pound, FOB car/truck (compression charges not paid).
- In Oklahoma, a light volume of color 31, mostly leaf 3, staple 35 and 36, mike 37-44, strength 31-33, and uniformity 77-79, and 50 percent extraneous matter sold for around 61.00 cents, same terms as above.
- A light volume of color 21, leaf 2 and 3, staple 36 and longer, mike 38-47, strength 30-32, and uniformity 80-82 sold for around 57.25 cents, same terms as above.
- A light volume of CCC-loan equities traded for 3.00 to 4.00 cents.
West Texas
- A heavy volume of color 31 and better, leaf 4 and better, staple 36 and longer, mike averaging 41.7, strength averaging 31.1, uniformity averaging 81.4, and 50 percent extraneous matter sold for around 61.00 cents per pound, FOB car/truck (compression charges not paid).
- A light volume of color 11 and 21, leaf 2 and 3, staple 35 and longer, mike 37-34, strength 26-29, and uniformity 78-80 sold for around 57.00 cents, same terms as above.
- Mixed lots containing a moderate volume of color 41 and better, leaf 6 and 7, staple 36 and longer, mike 30-34, strength 24-33, uniformity 76-82, and 75 percent extraneous matter sold for around 53.25 cents, same terms as above.
Western Markets
Desert Southwest
- In Oklahoma and Texas, mixed lots containing a moderate volume of color 41 and better, mostly leaf 4 and 5, staple 36 and longer, mike averaging 42.5, strength averaging 30.6, uniformity averaging 81.3, and 75 percent extraneous matter sold for around 52.25 cents per pound, FOB car/truck (compression charges not paid).
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
