Average quotations were 147 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 71.99 cents per pound for the week ended Thursday, February 23, 2017.
The weekly average was down from 73.46 cents last week, but up from 56.87 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 71.81 cents Wednesday, February 22 to a high of 72.39 cents Thursday, February 23. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended February 23 totaled 26,991 bales. This compares to 61,030 bales reported last week and 31,336 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 1,328,732 bales compared to 1,222,587 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 76.10 cents, compared to 76.77 cents last week.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #23 FOR UPLAND COTTON February 23, 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 March 2, 2017, allowing importation of 13,556,910 kilograms (62,266 bales) of upland cotton. Quota number 23 will be established as of March 2, 2017, and will apply to upland cotton purchased not later than May 30, 2017, and entered into the U.S. not later than August 28, 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 February 24 – March 2, 2017
- Adjusted World Price (AWP) – 65.58
- ELS Competitiveness Payment – 0.00
- Loan Deficiency Payment (LDP) – 0.00
- Fine Count Adjustment 2015 Crop – 0.06
- Coarse Count Adjustment (CCA) – 0.00
- Fine Count Adjustment 2016 Crop – 0.16
Source: Farm Service Agency, FSA, USDA
Regional Summaries
Southeastern Market
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 partly cloudy conditions were observed over much of the Southeast region during the period. A storm system brought light, scattered moisture to portions of the lower Southeast during the week. Areas of south Alabama received around 1 inch of day-to-day accumulated moisture with lesser accumulations observed across the Florida panhandle and areas of south Georgia.
Portions of the Carolinas and Virginia also received light scattered rainfall. Rainfall totals measured from trace amounts to less than one-quarter of an inch. Daytime high temperatures were in the lower 60s to mid-70s across the region. The few remaining gins operating rapidly neared completion.
Producers completed fieldwork and considered spring planting options. The annual meeting of the Virginia Cotton Growers Association and the Virginia Boll Weevil Eradication Foundation was held on February 23 in Franklin, Virginia.
South Central Markets
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 inactive. No forward contracting was reported.
Fair to partly cloudy conditions prevailed across the region during the period. Unseasonably warm daytime temperatures were observed in the mid-60s to upper 70s; on Sunday, Memphis broke another record for the third time this month when local temperatures reached 77 degrees. Local meteorologists reported that weather models point to above normal warm temperatures in the weeks ahead.
Widespread showers brought around one to one and one-half inches of moisture to central Arkansas. Lesser accumulations from trace amounts to around one-half of an inch of scattered moisture was received in the Bootheel of Missouri and areas of west Tennessee.
The precipitation helped to fortify subsoil moisture and alleviate droughty conditions in some of these areas. Producers inquired for contract terms and considered spring planting options.
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.
Mostly cloudy conditions were observed across the entire region during the period and widespread storms brought moisture to most areas. Unseasonably warm daytime highs in the mid-60s to lower 80s neared record temperatures in some areas. Scattered showers brought from trace amounts to around one-half of an inch of precipitation to portions of the lower South Delta.
Areas of north Louisiana received around 1 inch of accumulated moisture. The wet weather helped alleviate abnormally dry conditions in areas of north Louisiana and north Mississippi. Producers considered crops for the approaching planting season and inquired for contract terms.
Southwestern Markets
East Texas-Oklahoma
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. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from China, Pakistan, and Turkey.
Brief rainfall interrupted sowing activities in the Rio Grande Valley. The moisture was welcomed. Planting was earlier than past years, but outside conditions were favorable to start sowing. Soil temperatures increased under above average temperatures and was expected to aid in germination, according to local experts.
The Upper Coast and Upper Coastal Bend received good moisture ahead of planting. Heavy downpours saturated soils and halted fieldwork in eastern Texas. Some gins in Kansas and Oklahoma finished pressing operations.
West Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were lower. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was slow. Foreign inquiries were moderate. Interest was best from China, Pakistan, and Turkey.
Fieldwork was active with ground preparation for the next crop. Cutting stalks and plowing fields were underway. Herbicides and fertilizers were applied where needed. Over the weekend, heavy downpours brought additional rainfall to some areas. Thunderstorms were isolated and skirted around Lubbock, but brought good moisture to the Rolling Plains.
According to the West Texas Mesonet, all stations received some moisture during the month of February with several locations measuring 2-3 inches of rainfall. Ginning made good progress under mostly sunny, warm conditions with daytime highs in the low 70s to mid-80s and nighttime lows in the mid-20s to upper 30s. Many gins completed operations during the reporting period. Some gins went to days only.
Western Markets
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Producers inquired for 2017-crop contracts. Average local prices were lower. No domestic mill activity was reported.
Temperatures were in the mid-70s for central Arizona. Heavy rainfall deposited around three-quarters of an inch of precipitation early in the period. Fieldwork resumed as fields were firm enough to support equipment. Ginning was completed. Classing of samples continued in the Visalia Classing Office.
Temperatures were in the 60s and 70s for New Mexico and El Paso, Texas. No rainfall was recorded in the period. High wind warnings were posted. Local sources reported initial water allocations of 2 acre feet would be released by the end of March. Pre-plant irrigations were slated for around the second week of April.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. Producers inquired for 2017-crop contracts. No domestic mill activity was reported. Foreign mill inquiries were light.
Mostly cloudy conditions were prevalent. Heavy rainfall and strong winds were received early in the period. Off and on showers continued throughout the week. Accumulations ranged from one-half of an inch to one and one-half inches of precipitation in the Valley. Fields are completely saturated. Flooding was a concern as dam floodgates were opened to release water to make room for more. Resulting in elevated river, creek, and stream flows.
Levees in the central Valley were monitored closely for breaks. Flood advisories are in effect throughout California. Rainfall continues in the forecast. A stretch of sunny, dry days are needed for growers to repair and prepare fields for spring planting. The overall Sierra snowpack stands at 158 percent of the April 1 average, according to the California Department of Water Resources.
American Pima (AP)
Spot cotton trading was inactive. Supplies were light. Demand was steady. Average local spot prices were steady. Producers inquired for 2017-crop contracts. No contracts were signed. Foreign mill inquiries were light. Interest was best from China and Pakistan. Foreign mills inquired for 2017-crop cotton. No new sales were reported.
Arizona and California received rain early in the period. Accumulations ranged from one-half of an inch to one and one-half inches of precipitation. Planting was delayed in Yuma, Arizona. Fields in the San Joaquin Valley (SJV) of California are completely saturated, due to weekly rainfall. Flooding was a concern as dam floodgates were opened to release water to make room for more. Resulting in elevated river, creek, and stream flows. Levees in the central Valley were monitored closely for breaks.
Flood advisories are in effect throughout California. Rainfall continues in the forecast. The Sierra Nevada Mountain snowpack was above normal. SJV producers can begin planting at the earliest on March 10, but with the on-going wet weather and cold soil conditions will push planting into late March.
Temperatures were in the 60s and 70s for New Mexico and El Paso, Texas. No rainfall was recorded in the period. High wind warnings were posted. Local sources reported initial water allocations of 2 acre feet would be released by the end of March. Pre-plant irrigations were slated for around the second week of April.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 42 and 51, leaf 5 and better, and staple 32 and longer for June through September delivery. No sales were reported. Domestic cotton shippers reported that most mills have covered their raw cotton needs for nearby delivery. Most mills operated five to seven days.
Demand through export channels was light. Indonesian mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 36 for April shipment. Agents throughout the Far East inquired daily for any discounted or low grade styles of cotton. No sales were reported.
Regional Price Information
Southeastern Markets
- In Alabama, producers booked a light volume of 2017-crop acres at even to 50 points on ICE December futures.
- In South Carolina, producers booked a light volume of 2017-crop acres at 100 points on ICE December futures.
- In Georgia, producers booked a light volume of 2017-crop acres at 50 points to 100 points on ICE December futures, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
South Central Markets
North Delta
- No trading activity was reported.
South Delta
- No trading activity was reported.
Southwestern Markets
East Texas
- In Oklahoma, a mixed lot containing a light volume of mostly color 41, leaf 3 and 4, staple 36 and 37, mike 41-49, strength 29-31, and uniformity 80-82 sold for around 72.50 cents per pound, FOB car/truck (compression charges not paid).
- A light volume of mostly color 41, leaf 4, staple 37, mike 34-48, strength 28-31, uniformity 78-83, and 50 percent extraneous matter sold for around 71.00 cents, same terms as above.
- A light volume of color 41, leaf 2 and 3, staple 33 and 34, mike 44-47, strength 28-29, and uniformity 79-80 sold for around 70.00 cents, same terms as above.
West Texas
- A heavy volume of color 21, mostly leaf 2 and 3, staple 37 and longer, mike 35-49, strength 28-34, and uniformity 79-83 sold for around 74.50 cents per pound, FOB car/truck (compression charges not paid).
- A moderate volume of color 21 and 31, leaf 2 and 3, staple 36 and longer, mike 35-49, strength 26-35, and uniformity 77-83 sold for around 74.00 cents, same terms as above.
- A mixed lot containing a moderate volume of mostly color 31 and 32, leaf 5 and better, staple 37 and longer, mike 22-46, strength 25-33, uniformity 75-83, and 25 percent extraneous matter sold for around 70.00 cents, same terms as above.
- A light volume of CCC-loan equities traded for 15.00 to 16.00 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.
