Spot cotton quotations were 129 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 61.24 cents per pound for the week ended Thursday, July 30, 2015.
The weekly average was down from 62.53 cents last week and 65.53 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 62.67 cents Friday, July 24, to a low of 60.47 cents Thursday, July 30. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 30, totaled 2,718 bales.
This compares to 12,875 bales reported last week and 3,501 spot transactions reported the corresponding week a year ago. Total spot transactions for the season totaled 2,106,347 bales compared to 1,309,068 bales last year. The ICE October settlement prices ended the week at 63.66 cents, compared to 65.92 cents last week.
Regional Summaries
Southeastern Markets
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive.
Mostly fair to sunny conditions were observed during the period throughout Alabama, the Florida panhandle, and Georgia. Daytime high temperatures prevailed in the low to upper 90s. Localized scattered showers brought from one-half of an inch to two and one-half inches of beneficial precipitation to areas throughout Alabama over the weekend, with slightly lesser accumulations reported in south Georgia and the Florida panhandle.
The crop benefited from the timely moisture and plant growth regulators were applied to control excessive vegetative growth. Heavy irrigation was underway in areas that have missed significant moisture in recent weeks. Producers applied foliar fertilizers in the oldest planted fields that approached peak bloom. Insect pressure was moderate; producers scouted fields for stink bugs and made treatments as necessary. The crop condition was mostly fair to good.
Widespread thunderstorms brought moderate to heavy rainfall to the coastal Carolinas entering the weekend. Rainfall totals measured from one-half of an inch to three inches. The shower activity offered limited relief further inland where droughty conditions had developed and stressed crops. Aphid fungus had appeared and helped reduce pressure from this pest in South Carolina. In North Carolina, treatments were underway to combat lygus.
Hot, dry, and humid weather prevailed in Virginia and producers would welcome a timely rainfall in the near term to invigorate the crop. The crop condition was rated mostly fair to good in the Carolinas and mostly good in Virginia.
South Central Markets
North Delta
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Hot and dry conditions continued to dominate the weather pattern. Temperatures were in the upper 90s to low 100s. Producers were irrigating at full capacity. The crop made good progress, but rainfall was needed to supply adequate moisture to maturing cotton bolls in non-irrigated areas. Some producers were concerned that the quality of the micronaire could be adversely affected by the heat.
Producers applied plant growth regulators as needed to control excessive vegetative growth. Insect pressure from plant bugs and stink bugs has been building steadily. Some producers have made multiple applications to control outbreaks. According to the National Agricultural Statistics Service, boll-setting was ahead of or near the five-year average in Arkansas and Tennessee, but lagged well behind in Missouri. The crop was in mostly good condition.
South Delta
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Hot and humid conditions dominated the weather pattern. Temperatures were in the high 90s and low 100s. No rainfall was reported. Producers were irrigating wherever possible to avoid heat stress to maturing cotton bolls. The crop made good progress, but was beginning to show the effects of excessive heat and the lack of moisture. Producers applied plant growth regulators as needed to control excessive vegetative growth. Insect pressure from plant bugs has been building steadily. Producers made applications of crop protection chemicals to control outbreaks.
According to the National Agricultural Statistics Service, boll-setting was slightly behind the five-year average in Louisiana and 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 lower. Trading of CCC-loan equities was slow. Foreign mill inquiries were light.
Defoliants were applied in the Rio Grande Valley. Dryland fields were ready to harvest, according to industry expert reports. In south Texas, temperatures in the low 100s helped the crop to mature quickly. Bolls continued to crack open. A few fields were defoliated. The crop was squaring in the Blackland Prairies, but some areas have not had moisture in about three weeks and the crop suffered. Area fields need rain to continue fruiting.
In Kansas, heavy thunderstorms brought beneficial moisture. Some wind gusts peaked at 40 miles per hour, but no crop damage was reported. In Oklahoma, fields were squaring and setting bolls. The crop advanced with temperatures in the low 100s. Some producers sprayed twice for fleahoppers. Canal irrigation continued.
West Texas
Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was slow. Foreign mill inquiries were light.
Cotton responded well to dry, hot conditions. The crop advanced with daytime temperatures in the upper 90s and nighttime lows in the upper 70s around Lubbock and areas on the Caprock. Some locations off the Caprock experienced temperatures in the low 100s. Scattered showers brought one-half to two and one-half inches of precipitation to localized fields in the panhandle and in eastern New Mexico.
The late-planted crop progressed closer to normal development. Heat unit accumulations increased each day and the long-term average was reached on June 25 in Lubbock County, according to industry experts. The majority of the crop reached the early bloom stage and was setting bolls. Irrigation was underway. Producers hoped for rain on dryland acres. The attack on weeds continued with spray applications and hoe crews to control relapses. Fields were treated with insecticide as needed to control pests.
Western Markets
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Daytime temperatures were in the high 100s and nighttime lows were in the mid-to-high 80s in Arizona. Afternoon monsoon activity brought little moisture to the area. The Yuma producers were applying final irrigation to the crop. Defoliation will begin in two to three weeks. The crop made good progress.
Local industry representatives commented that there were fewer Level 1 or 2 heat stress days, around eight days recorded for Arizona compared to 25 days last year, which they hope bodes well for the crop. The crop made good progress in Safford, Arizona and the central portion of the state. Insect pressure was light and easily controlled.
Recent rains benefited the cotton crop in New Mexico and El Paso, Texas. Monsoon activity brought one-half of an inch to one and one-quarter inches of moisture in the reporting period. Some areas recorded rainfall amounts of two to four inches of precipitation for the month of July, which helped lower irrigation costs for producers. Afternoon thunderstorms produced one-third of an inch of moisture late in the period for New Mexico and El Paso, Texas.
Some fields were treated for cotton rust in New Mexico. Producers in the lower Valley of El Paso sprayed for bollworm. Overall, the crop made good progress.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Hot, dry conditions continued. Monsoon activity brought cloudy conditions that entered the area late in the period. No rain was received, but conditions turned humid. Lygus treatments continued. The crop continued to make 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. Interest was best from China.
A total of 384,000 bales were committed to export sales for week ending July 23, compared to 651,400 bales last year, according to the Foreign Agricultural Service.
Temperatures were mostly in the high 100s for Arizona and California. Monsoon activity kept temperatures in the mid-90s for New Mexico and El Paso, Texas. Overall, the crop made good progress in the region.
Textile Mill
Domestic 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. Demand was also good for 2015-crop cotton, color 41, leaf 4, and staple 34 for fourth quarter fill-in needs. No sales were reported. Yarn demand remained strong. 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
- No trading activity was reported.
North Delta
- No trading activity was reported.
South Delta
- A moderate volume of color 21 and 31, leaf 3 and better, staple 37 and longer, mike 42-49, strength 30-34, and uniformity 80-84 traded for around 71.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
East Texas
- In Texas, a light volume of color 31 and better, mostly leaf 3, staple 36 and longer, mike averaging 42.3, strength averaging 31.2, and uniformity averaging 81.7 sold for around 64.00 cents per pound, FOB warehouse (compression charges not paid).
- In Oklahoma, a light volume of mostly color 41, leaf 4 and 5, staple 35 and 36, mike 41-45, strength 31-33, uniformity 80-83, and 25 percent extraneous matter sold for around 55.25 cents, FOB car/truck (compression charges not paid).
- Mixed lots containing a light volume of color 34 and better, mostly leaf 4 and better, staple 36 and longer, mike 40-46, strength 28-32, and uniformity 80-82 sold for around 54.00 cents, same terms as above.
- A light volume of CCC-loan equities traded for 3.00 to 5.00 cents.
West Texas
- Mixed lots containing a heavy volume of color 31 and better, mostly leaf 3 and 4, staple 36 and longer, mike averaging 41.2, strength averaging 30.9, uniformity averaging 81.2, and 50 percent extraneous matter sold for around 63.75 cents per pound, FOB car/truck (compression charges not paid).
- A light volume of color 33 and better, leaf 2 and 3, staple 33 and 34, mike 35-47, strength 27-30, and uniformity 78-82 sold for around 51.50 cents, same terms as above.
- A light volume of CCC-loan equities traded for 7.00 to 12.00 cents.
Western Markets
Desert Southwest
- No trading activity was reported.
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
