Average quotations were 164 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 74.84 cents per pound for the week ended Thursday, March 9, 2017.
This is the highest weekly average since June 26, 2014 when the average was 77.72 cents. The weekly average was up from 73.20 cents last week and from 55.52 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 74.39 cents Friday, March 3 to a high of 75.47 cents Monday, March 6.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 9 totaled 36,009 bales. This compares to 58,171 bales reported last week and 27,333 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 1,422,912 bales compared to 1,281,541 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 77.82 cents, compared to 76.78 cents last week.
Prices are in effect from March 10-16, 2017
- Adjusted World Price (AWP) – 68.34
- ELS Competitiveness Payment – 0.00
- Loan Deficiency Payment (LDP) – 0.00
- Fine Count Adjustment 2015 Crop – 0.16
- Coarse Count Adjustment (CCA) – 0.00
- Fine Count Adjustment 2016 Crop – 0.26
Source: Farm Service Agency, FSA, USDA
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were higher. Producers took advantage of higher ICE futures prices during the period to book a moderate volume of 2017-crop cotton. Trading of CCC-loan equities was inactive.
Sunny weather gave way to mostly overcast conditions early in the period as a cold front moved across Alabama, the Florida panhandle, and areas of north and central Georgia. Thunderstorms produced scattered showers and windy conditions as storms tracked across the lower Southeast. Portions of these areas received between one-quarter of an inch to one inch of daily accumulated moisture.
Locally heavier rainfall received in north Alabama helped to improve droughty conditions and fortify subsoil moisture; but local experts reported additional moisture will be needed in these areas as planting approaches to moderate the intensifying drought. Daytime high temperatures were in the upper 60s to upper 70s, with some Gulf coastal areas recording temperatures into the lower 80s as clear weather returned late week.
Cold and mostly clear to partly cloudy conditions were observed across the Carolinas and Virginia early in the period with daytime temperatures in the upper 40s to lower 60s. Overnight low temperatures dipped near or below freezing in many areas. Daytime highs warmed into the low-to-mid 70s late week ahead of colder conditions forecast to return this weekend.
South Central Markets
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were higher. A light volume of forward contracting was reported. Producers continued to book light volumes of cotton as an air of optimism surrounded the cotton industry. Trading of CCC-loan equities was slow.
Unsettled climatic conditions prevailed during the week. A winter storm brought a series of thunderstorms and severe weather, including high winds and heavy rainfall, late in the period. Daytime temperatures varied from the 70s to the 50s. Overnight lows were in the 30s and 50s. Accumulations of about 2 inches of moisture were reported in localized areas.
According to the U.S. Drought Monitor, abnormal dryness persisted throughout the region due to less than average rainfall and warmer than usual temperatures. Burndown herbicides were applied in some areas.
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. A light volume of forward contracting was reported.
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Seasonably cool temperatures and heavy precipitation characterized the weather pattern during the week. Daytime temperatures were in the 60s to 80s. Overnight lows were in the 30s to 40s. A winter storm brought severe weather, including high winds, lightning, and heavy rainfall late in the period. According to the U.S Drought Monitor, rainfall alleviated the moderate drought conditions in Louisiana and Mississippi; however, abnormal dryness persisted in both states.
Producers booked a moderate volume of cotton as they finalized plans for the upcoming planting season. Field preparations expanded where soils were firm enough to support equipment. Burndown chemicals were applied as producers prepared fields for planting.
Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was active. Foreign inquiries were moderate. Interest was best from China, Pakistan, and Turkey.
In the Rio Grande Valley (RGV) and in south Texas, thunderstorms brought one-fourth to one and one-half inches of beneficial rainfall and interrupted planting activities. Seedlings had emerged and some fields were in the 2 true leaf stage, according to industry experts in the RGV. The crop is getting off to an early start.
In the Blackland Prairies, soggy soils from recent rainfall delayed corn and sorghum planting. Cotton will be planted approximately 60 days after the grain crops when the soil temperatures warm. Fertilizer was applied.
In Kansas, one gin continued pressing services as the season draws to an end.
In Oklahoma, according to the National Agricultural Statistics Service’s Crop Progress report released March 6, topsoil and subsoil moisture conditions were rated mostly adequate-to-short. Ginning neared the end of the season with four gins in operations.
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was active. Foreign inquiries were moderate. Interest was best from China, Pakistan, and Turkey.
Daytime temperature highs were in the mid-60s to low 80s. Nighttime lows were in the mid-30s to low 50s. Intermittent spraying for weeds was underway as gusty winds allowed. Windy conditions prevailed. Deadly wildfires in the panhandle limited visibility on the mornings of March 6-8 and left a smoky haze across the region. Gusty winds caused havoc and thousands of acres have burned across different counties.
Outside activities were limited in some areas because of poor air quality. Ginning continued, but most gins had completed the season. Seed was booked.
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Producers inquired for 2017-crop contracts. A few contracts were signed. Average local prices were higher. No domestic mill activity was reported. Foreign mill inquiries were light. Interest was best from Vietnam.
Conditions were very warm in Arizona, with temperatures in the high 70s to mid-80s. Planting gained momentum in Yuma. Fieldwork was active across central Arizona. Temperatures warmed into the high 70s in New Mexico and El Paso, Texas. Red flag warnings were in effect mid-week for areas in southeastern New Mexico and into El Paso, Texas due to gusty winds and low humidity.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were higher. Producers inquired for 2017-crop contracts. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Interest was best from China.
Scattered thunderstorms brought lightning, hail, strong winds, and rain to the Valley early in the period. Accumulations ranged from one-tenth of an inch to one-quarter of an inch of moisture. A winter storm warning was in effect for the Sierra Nevada Mountain range. Snowfall was recorded as low as 2,000 feet. Higher elevations received 15 to 20 inches of fresh snow. Flood advisories remained in effect for Fresno and Madera Counties, due to water releases from local dams.
Fieldwork was active. Fertilizer and pre-emergent herbicide were applied.
American Pima (AP)
Spot cotton trading was inactive. Supplies were light. Demand was good. Average local spot prices were steady. Producers inquired for 2017-crop contracts. No contracts were signed. Most shippers were reluctant to offer new-crop cotton. Foreign mill inquiries were steady. Interest was best from Brazil, China, Mexico, and Turkey. According to the Foreign Agricultural Service export sales report approximately 2,600 bales of 2017-crop AP was sold for the week ending March 2, 2017.
Mostly sunny skies were prevalent for Arizona, California, New Mexico, and El Paso, Texas. Precipitation was received in California early in the period. Approximately one-tenth of an inch to one-quarter of an inch was recorded. Planting gained momentum in Yuma, Arizona. Pre-plant preparations continued in Far West.
Domestic mill buyers purchased a moderate volume of color 41 and better, leaf 3 and 4, and staple 34 and longer for June through October delivery. Demand was good for color 41, leaf 4, and staple 34 for third and fourth quarter fill-in needs. Domestic cotton shippers reported that buyers had been holding off purchasing activity as they waited for more attractively priced raw cotton, but sales had increased recently as ICE futures prices continued to trend higher. Most mills operated five to seven days.
Demand through export channels was light. Vietnamese mill buyers purchased a moderate volume of color 41 and 32, leaf 4 and better, and staple 35 and longer for prompt shipment. Agents throughout the Far East inquired daily for any discounted or low-grade styles of cotton.
Regional Price Information
- No trading activity was reported.
South Central Markets
- A light volume of CCC-loan equities traded for around 17.50 cents per pound.
- Producers booked a light volume of 2017-crop acres of CCC-loan equities for 17.00 to 19.00 cents.
- Producers booked a light volume of 2017-crop acres of CCC-loan equities for 17.00 to 19.00 cents per pound.
- In Oklahoma, a light volume of color 11 and 21, leaf 2 and 3, staple 36 and 37, mike 37-40, strength 30-31, and uniformity 81-82 sold for around 76.50 cents per pound, FOB car/truck (compression charges not paid).
- A light volume of color 32 and better, leaf 2 and 3, staple 35 and 36, mike 43-49, strength 26-29, and uniformity 78-82 sold for around 74.00 cents, same terms as above.
- Mixed lots containing a light volume of color 42 and better, leaf 2 and 4, staple 35 and 36, mike 38-50, strength 30-32, uniformity 79-83, and 100 percent extraneous matter sold for around 69.50 cents, same terms as above.
- A heavy volume of color 42 and 51 was sold to mills in Turkey for prompt shipment.
- In Oklahoma, a moderate volume of CCC-loan equities traded for 18.00 to 19.00 cents.
- A moderate volume of color 11 and 21, mostly leaf 3 and better, staple 35-37, mike 35-43, strength 26-30, and uniformity 78-83 sold for around 77.75 cents per pound, FOB car/truck (compression charges not paid).
- A mixed lot containing a heavy volume of mostly color 32 and 42, leaf 2-4, staple 37 and longer, mike 30-49, strength 26-32, uniformity 78-82, and 25 percent extraneous matter sold for around 73.50 cents, same terms as above.
- A moderate volume of color 41 and 42, leaf 3-5, staple 36, mike 38-44, strength 28-30, uniformity 80-82, and 75 percent extraneous matter sold for around 71.25 cents, same terms as above.
- In west Texas, a light volume of color 31, leaf 3, and staple 36 was sold to Indian Mills.
- A heavy volume of CCC-loan equities traded for 16.50 to 18.75 cents.
- A light volume of New Mexico cotton color 42 and better, leaf 3-5, staple 35 and 36, mike averaging 42.9, strength averaging 29.6, and uniformity averaging 80.6 sold for at around 71.75 cents per pound, FOB car/trucks (compression charges not paid).
- A heavy volume of 2017-crop Arizona cotton for contract base quality color 21, leaf 2, and staple 36 and longer was contracted at around 73.00 cents per pound, FOB warehouse, with fixed differences paid for qualities lower than the contract base quality.
San Joaquin Valley
- A heavy volume of color 21 and better, leaf 2, and staple 39 and longer was sold to mills in China for prompt shipment.
- No trading activity was reported.