Average quotations were 358 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 72.63 cents per pound for the week ending Thursday, September 7, 2017.
The weekly average was up from 69.05 last week, and 67.60 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 70.96 cents Friday, September 1 to a season high of 73.47 cents Tuesday, September 5.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 7 totaled 8,136 bales. This compares to 2,566 bales reported last week and 3,217 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 24,795 bales compared to 14,213 bales the corresponding week a year ago.
The ICE October settlement prices ended the week at 75.03 cents, compared to 71.48 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers took advantage of higher ICE futures to fix prices on a moderate volume of 2017-crop cotton.
Partly cloudy to sunny conditions prevailed across the lower Southeast during the weekend with daytime high temperatures in the upper 80s to lower 90s. Early evening isolated shower activity was observed in some areas; rainfall totals measured from trace amounts to less than one-tenth of an inch. A cold front entered the region mid-week dropping daytime temperatures into the low 80s and overnight temperatures into the low 60s. The crop progressed well and bolls were cracking open.
In Alabama and Georgia, producers continued to spray fields for infestations of white flies. In Georgia, a few of the earliest-planted fields have been defoliated, but defoliation activity has stopped due to the threat of Hurricane Irma. Leaves on plants should help protect cotton in open bolls from potential wind and rain.
Overcast and foggy conditions were observed in portions of North Carolina and Virginia over the weekend. Scattered thunderstorms brought around one-half of an inch to three quarters of an inch of precipitation to some areas. Daytime high temperatures were observed in the mid-80s to lower 70s across the Carolinas and Virginia. Insect pressure was generally light and manageable. Producers scouted fields and applied control measures as needed.
Producers across the southeastern region were closely monitoring the path of Hurricane Irma. According to the National Agricultural Statistics Service’s Crop Progress report released September 5, cotton bolls opening reached 38 percent in South Carolina, 34 in Georgia, 27 in Alabama, 20 in North Carolina, and 19 percent opened in Virginia.
Textile Mill
Demand was good from domestic mill buyers for color 41, leaf 4, and staple 34 and longer for second and third quarter 2018 delivery. No additional sales or inquiries were reported. Most mills have covered their immediate-to-nearby raw cotton needs. Yarn demand was moderate to good. Most mills operated five to seven days.
Demand through export channels was moderate. Representatives for mills in Vietnam purchased a moderate volume of color 31, leaf 3, and staple 36 for December shipment. No additional sales were reported.
Trading
- No trading activity was reported.
South Central Markets Regional Summary
North Delta
Spot cotton trading was slow. 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. Producers took advantage of higher ICE futures prices to fix prices on previously booked cotton.
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Heavy thunderstorms brought up to 3 inches of rain early in the week. Late-week, a cold front brought cool temperatures and clear skies throughout the region. Daytime temperatures were in the 80s and overnight lows were in the 50s and 60s. Many fields had reached cut-out and producers were hoping for clear, dry weather to finish the crop. Defoliation expanded slowly in early-planted fields as soft soils continued to firm enough to support equipment. Equipment was readied for harvest.
According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 5, open bolls had reached 25 percent in Arkansas, 32 in Missouri, and percent in Tennessee. NASS also reported that the crop condition in Arkansas was rated at 85 percent good-to-excellent, compared with 58 percent in Missouri and 95 percent in good-to-excellent condition in Tennessee.
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. Producers took advantage of higher ICE futures prices to fix prices on previously booked cotton.
A cold front brought cool temperatures and clear skies throughout the region. Daytime temperatures were in the 80s and overnight lows were in the 50s and 60s. Producers were hoping for clear, dry weather to finish the crop. Defoliation expanded slowly in early-planted fields as soft soils continued to firm enough to support equipment. Equipment was readied for harvest.
According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 5, open bolls had reached 72 percent in Louisiana, compared to 30 percent in Mississippi. NASS also reported that 49 percent of the crop was in good-to-excellent condition in Louisiana, compared to 77 percent in Mississippi.
Trading
North Delta
- A light volume of 2016-crop, color mostly 31 and 42, staple 34 and longer, leaf 5 and better, mike averaging 51.7, strength averaging 30.9, and uniformity averaging 81.6 traded at around 71.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
- A light volume of 2016-crop, color mostly 41 and 42, staple 34 and longer, leaf 5 and better, mike averaging 49.9, strength averaging 31.4, and uniformity averaging 82.6 traded at around 64.00 cents, same terms as above.
South Delta
- No trading activity was reported.
Southwestern Markets Regional Summary
East Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was very good. Average local spot prices were higher. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was inactive. Foreign inquiries were light-to-moderate. Interest was best from China, Korea, and Turkey.
Final harvesting was underway in the Rio Grande Valley. Modules were in the fields and waiting to be transported. Thousands of modules have accumulated on gin yards. Ginning will continue for another four to six weeks, according to local reports. Harvesting and ginning was active in the northern Blackland Prairies. Most gins were pressing bales. Damage assessments were ongoing in the southern Blackland Prairies and some fields remained flooded.
In Kansas, cooler than normal temperatures prevailed, but the forecast calls for sunny, dry days ahead that will help the bolls to mature. Some growth regulators were applied to help the plant focus on finishing the fruit set. Bolls had begun to open on the east side of Kansas where a shorter season variety was planted. Boll openers and defoliants have been ordered, but shortages were reported because of the high demand for the products.
In Oklahoma, the bolls had begun to open. Gins conducted repairs and prepared for the season.
West Texas
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was inactive. Foreign inquiries were light-to-moderate. Interest was best from China, Korea, and Turkey.
Unseasonably cooler temperatures prevailed with daytime highs in the mid-80s and nighttime lows in the mid-50s to low 60s. Heat unit accumulations slowed under cooler temperatures, and slowed crop advancement. Bolls had begun to crack open. Optimism remained strong for a high yielding crop.
Insect pressure remained light, but experts monitored for plant pests including the bollworm. Weed management practices have helped fields stay clean.
The first ginned bale was delivered to the lobby of a bank in Seminole. The bale will be auctioned on September 21 during the Gaines County Ag/Oil Appreciation Day Celebration. Proceeds will go to a local youth charity. The bale was graded at the Lamesa Classing Office on September 6.
Widespread harvesting was expected to begin in October. Industry meetings were held to discuss the progress of the crop.
Trading
East Texas
- A moderate volume of mostly color 11 and 21, leaf 1 and 2, staple 35 and longer, mike averaging 40.1, strength averaging 29.1, and uniformity 77-80 sold for around 73.50 cents per pound, FOB warehouse (compression charges not paid).
- A light volume of mostly color 31 and 41, leaf 2 and 3, staple 35 and longer, mike 41-52, strength 26-30, and uniformity 77-82 sold for around 72.00 cents, same terms as above.
- A mixed lot containing a light volume of color mostly 32 and better, leaf 3 and better, staple 33-36, mike averaging 43.3, strength 26-33, and uniformity averaging 79.8 sold for around 69.00 cents, same terms as above.
West Texas
- A light volume of 2016-crop cotton containing color 21 and 31, leaf 3 and better, staple 37, mike averaging 47.9, strength averaging 32.9, and uniformity averaging 80.1 sold for around 65.50 cents per pound, FOB car/truck (compression charges not paid).
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Temperatures were in the mid-to-high 100s in Arizona. One-quarter of an inch of rainfall was received in Yuma early in the reporting period. Modules accumulated in fields and were transported to the gin yard. Ginning gained momentum. Grading of cotton samples began in the Visalia Classing Office.
Initial grading results were typical of the area. Temperatures were in the low to mid-90s in New Mexico and El Paso, Texas. No moisture was recorded in the period. The crop advanced and made good progress.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
A cold front moved in over the weekend bringing showers to Kern County and creating dust storm conditions for the Valley. Air quality was hazy with smoke and ash from wildfires burning in surrounding areas. Fields approached cut-out. Producers attended industry meetings.
American Pima (AP)
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 steady.
Hot, dry conditions were prevalent in the Far West. Showers brought moisture to western Arizona and the southern San Joaquin Valley early in the reporting period. It was just enough to shake off the dust. The crop made good progress throughout the region. Fields quickly approached cut-out. Bolls were cracking open. Producers prepared equipment for harvesting. Gin repairs continued.
Trading
Desert Southwest
- No trading activity was reported.
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
