Average quotations were up 134 points from 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 72.26 cents per pound for the week ended Thursday, January 26, 2017.
The weekly average was up from 70.92 cents last week and 60.47 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 71.46 cents Friday, January 20 to a high of 73.02 cents Monday, January 23.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended January 26 totaled 140,546 bales. This compares to 53,781 bales reported last week and 60,341 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,067,357 bales compared to 1,023,785 bales the corresponding week a year ago.
The ICE March settlement prices ended the week at 74.19 cents, compared to 72.69 cents last week.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #19 FOR UPLAND COTTON January 26, 2017
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 February 2, 2017, allowing importation of 13,556,910 kilograms (62,266 bales) of upland cotton.
Quota number 19 will be established as of February 2, 2017, and will apply to upland cotton purchased not later than May 2, 2017, and entered into the U.S. not later than July 31, 2017. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period September 2016 through November 2016, 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.
Prices are in effect from January 27- February 2, 2017
- Adjusted World Price (AWP) – 64.08
- ELS Competitiveness Payment – 0.00
- Loan Deficiency Payment (LDP) – 0.00
- Fine Count Adjustment 2015 Crop – 0.04
- Coarse Count Adjustment (CCA) – 0.00
- Fine Count Adjustment 2016 Crop – 0.14
Source: Farm Service Agency, FSA, USDA
Regional Summaries
Southeastern Market
Spot cotton trading was slow. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive.
A series of violent storms were responsible for multiple deaths during the period as damaging winds and tornadoes swept across portions of southern Georgia destroying homes, toppling trees and power lines. Some producers reported damage to blown over center pivot irrigation rigs, but no additional damage to ginning or warehouse infrastructure was reported.
Around 1 to 2 inches of precipitation was received across the lower Southeast early in the period, but mostly sunny conditions prevailed late week. Producers mowed stalks and completed winter fieldwork where soils were firm enough to support equipment.
Mostly overcast and rainy conditions were observed over the weekend in the Carolinas and Virginia. Precipitation totals measured from around one-quarter to one and one-quarter inches of day-to-day accumulated moisture.
Mostly sunny weather prevailed later in the period and breezy conditions helped soft soils to firm. No outside activities were reported. Light volumes of samples continued to be received at the Florence and Macon Classing Offices, but ginning was rapidly winding down for the season. Producers attended annual meetings across the Southeast region.
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. No forward contracting was reported.
Sharply fluctuating temperatures once again characterized the weather pattern. Warm daytime temperatures in the 50s to 70s dropped into the 40s as a cold front associated with a winter storm moved into the region. Overnight lows were in the 30s with wind chill factors in the 20s due to gusty winds.
Accumulated moisture for the period measured less than 1 inch. Producers, ginners, and other industry representatives attended local and regional industry meetings; producers monitored the cost of inputs, particularly fuel, fertilizer, and seed prices, as they continued to plan for spring planting.
South 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. No forward contracting was reported.
Volatile temperatures prevailed during the period. Daytime temperatures in the 70s dropped to the 50s as a cold front moved through the area. Overnight lows were in the 40s to 50s. Precipitation measured about 2 inches throughout the region.
Cold, dry weather was in the near-term forecast. Producers attended various regional and national industry meetings and associated workshops. Producers carefully monitored input prices, including fuel, seed, and fertilizer while planning their planting options for next season.
Southwestern Markets
East Texas-Oklahoma
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was good. Trading of CCC-loan equities was inactive. Interest was best from China, Indonesia, and Pakistan.
Hot, windy conditions prevailed in southern Texas and the Rio Grande Valley with daytime highs reaching the low 90s. Soil temperatures increased and seedbeds were prepared. Fertilizers and herbicides were applied. Planting is expected to begin earlier than normal because of the warm conditions. Meetings were attended.
In eastern Texas, rainfall and winds with gusts up to 70 miles per hour caused some damage to buildings. Overall, the rainfall was beneficial. Soils were soggy most of the period and fieldwork was interrupted.
In Kansas, the ginning season is nearing completion. In Oklahoma, ginning continued with all gins providing pressing services on multiple shifts. Local reports indicated that gins were at least three weeks away from slowing down.
West Texas
Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was good. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Indonesia, and Pakistan.
Module transporting remained active as intermittent, light rainfall fell in some areas on January 21. Sunny, windy conditions prevailed. Daytime temperatures were in the mid-30s to lower 70s and nighttime lows were mostly in the teens to low 40s. Harvesting was limited. Fertilizers and herbicides were applied. Some gins continued pressing operations and others finalized operations.
Producers were encouraged with above-average yields, according to local reports. Industry members are optimistic moving into the 2017-crop. An increase in planted acreage is projected. New chemistries have expanded options to help manage weeds. Meetings were attended.
Western Markets
Desert Southwest (DSW)
Spot cotton trading was active. Supplies were moderate. Producer offerings were heavy. Demand was moderate. Producers inquired for 2017-crop contracts. Average local prices were higher. No forward contracting or domestic mill activity was reported.
Shower activity moved into Arizona and approximately three-quarters of an inch of rainfall was received mid-period. Several washes and low-lying fields were flooded. The Verde and Salt River basins were well above normal for this time of year. The Arizona snowpack increased. Sources reported that producers intend to increase 2017 acreage by 15 to 25 percent.
Several factors will impact 2017 acreage, such as water allocations, cottonseed contracts, alternative row crops, and leasing acreage for planting. Ginning continued. Fieldwork began late in the period as fields were dry enough to support equipment. Up to one-quarter of an inch to one-third of an inch of rainfall was received in southern New Mexico and El Paso, Texas. Ginning continued uninterrupted.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Merchant offerings were light. Demand was light. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
A five-day stretch of rain and snowfall began in California late in the period. The Valley received 1 to 2 inches of beneficial rainfall in the period. The Sierra Nevada Mountain range received up to 30 inches of fresh snow. The latest storms boosted the overall Sierra snowpack to 191 percent of average for January 25, according to the California Department of Water Resources. Producers resumed fieldwork as saturated soils firmed. Roller ginning continued.
American Pima (AP)
Spot cotton trading was inactive. Supplies were light. Demand was good. Average local spot prices were higher. Foreign mill inquiries were light. Merchant offering prices remained firm. New-crop inquiries were light and mostly for price discovery.
Well-above normal precipitation continued in the Far West. Scattered showers deposited three-quarters of an inch of rainfall in Arizona. New Mexico and El Paso, Texas received around one-third of an inch. The San Joaquin Valley of California received 1 to 2 inches of moisture. The overall Sierra Nevada Mountain snowpack stands at 191 percent of average for January 25, according to the California Department of Water Resources.
Storms also boosted the Arizona snowpack. Although the water outlook has improved, federal and state water allotments are still pending. Producers resumed fieldwork as saturated soils firmed. Ginning continued.
Textile Mill
Domestic mill buyers inquired for a moderate volume of 2017-crop cotton, color 52 and better, leaf 5 and better, and staple 32 and longer for October through December 2017 delivery. No sales were reported. Reports indicated most domestic cotton shippers were unwilling to offer lower grade styles of 2017-crop cotton for sale at this time.
Mill buyers also inquired for a moderate volume of color 41, leaf 3, and staple 35 for June through September delivery. Representatives for domestic mills also inquired for a moderate volume of color 51 and better, leaf 5 and better, and staple 34 and longer for February/March delivery. No sales were reported. Most mills operated five to seven days.
Demand through export channels was moderate. Korean mill agents purchased a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 36 for July through September shipment. No additional sales or inquiries were reported.
Regional Price Information
Southeastern Markets
- A light volume of color mostly 21 and 31, leaf 2-4, staple mostly 36 and 37, mike mostly 53 and higher, strength 33-35, and uniformity 82-84 sold for around 73.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
South Central Markets
North Delta
- No trading activity was reported.
South Delta
- No trading activity was reported.
Southwestern Markets
East Texas
- In Oklahoma, a heavy volume of color 41, leaf 2-5, staple 35 and longer, mike 36-55, strength 26-31, and uniformity 77-82 sold for around 70.00 cents per pound, FOB car/truck (compression charges not paid).
- A moderate volume of mostly color 41, leaf 3 and 4, staple 34 and longer, mike 44-48, strength 26-28, uniformity 78-82, and 25 percent extraneous matter
- A heavy volume of color 31, leaf 3 and better, staple 38 and longer, mike 29-34, strength 27-31, and uniformity 77-82 sold for around 65.75 cents, same terms as above.
- In Kansas, a heavy volume of mostly color 21 and 31, leaf 2 and 3, staple 36 and 37, mike 38-41, strength 27-29, and uniformity 80-82 sold for around 70.75 cents, same terms as above.
West Texas
- A heavy volume of mostly color 21 and 31, leaf 1 and 2, staple 39 and longer, mike 32-45, strength 28-34, and uniformity 78-83 sold for around 72.00 cents per pound, FOB car/truck (compression charges not paid).
- A heavy volume of color 21 and 31, leaf 1 and 2, staple mostly 38 and longer, mike 38-46, strength 28-33, and uniformity 78-82 sold for around 71.25 cents, same terms as above.
- A heavy volume of color 31 and better, leaf 3 and better, staple 34, mike 39-52, strength 25-32, and uniformity 78-81 sold for around 69.25 cents, same terms as above.
- A moderate volume of color 31, leaf 3, staple 35 and longer, mike 47-52, strength 25-29, and uniformity 79-80 sold for around 69.00 cents, same terms as above.
Western Markets
Desert Southwest
- A heavy volume of color 31 and better, leaf 3 and better, staple 37 and longer, mike 37-42, strength averaging 33.0, and uniformity averaging 81.0 traded for around 100 points off ICE March futures, uncompressed, FOB warehouse.
- A light volume of 2017-crop Arizona cotton for contract base quality color 31, leaf 3, and staple 35 was booked at around even ICE December futures, with fixed differences paid for qualities lower than the contract base quality.
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
