Average quotations were 15 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 80.22 cents per pound for the week ending Thursday, May 3, 2018.
The weekly average was up from 80.07 last week and 75.69 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 80.51 cents Friday, April 27 to a low of 79.74 cents Monday, April 30. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 3 totaled 25,892 bales. This compares to 34,085 bales reported last week and 838 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 1,876,705 bales compared to 1,553,169 bales the corresponding week a year ago. The ICE July settlement prices ended the week at 84.50 cents, compared to 84.17 cents last week.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #2 FOR UPLAND COTTON May 3, 2018
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 May 10, 2018, allowing importation of 13,170,669 kilograms (60,492 bales) of upland cotton.
Quota number 2 will be established as of May 10, 2018, and will apply to upland cotton purchased not later than August 7, 2018, and entered into the U.S. not later than November 5, 2018. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period December 2017 through February 2018, 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.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive.
Mostly sunny to partly cloudy conditions prevailed across the entire Southeastern region during the period. Daytime high temperatures were in the upper 70s to upper 80s, overnight lows were in the low 50s to mid-60s. Localized rain shower activity brought around one-quarter to one-half of an inch of precipitation to pockets of northeast Alabama, the coastal Pee Dee region of the Carolinas, and areas of central Virginia early in the period.
In Alabama, cotton planting was getting underway, but has been delayed slightly due to cooler temperatures and wet conditions in recent weeks. Seedlings were emerging in the earliest-planted fields in Georgia and planting activity was in full swing as favorable weather conditions prevailed.
In South Carolina, producers were adding burn-down applications to fields in preparation for planting in the weeks ahead. In North Carolina and Virginia, planting was just getting underway as warmer and drier conditions allow.
According to the National Agricultural Statistics Service’s Crop Progress report released April 30, planting had reached 10 percent in Georgia, 9 in Alabama, 5 in Virginia, 3 in South Carolina, and 1 percent in North Carolina.
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 for August through October fill-in needs. Demand was good for 2018-crop cotton, color 42 and better, leaf 4 and better, and staple 34 and longer for November 2018 through December 2019 delivery. No sales were reported. Yarn demand was moderate. Most mills operated five to seven days. Load out dates at most warehouses were reported at 8 to 10 weeks.
Demand through export channels was moderate. Agents for mills in Vietnam inquired for a moderate volume of 2018-crop cotton, color 31 and 41, leaf 3 and 4, and staple 35 and longer for November through March 2019 shipment. No sales were reported.
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- A light volume of color 41, leaf 8, staple 36 and 37, mike 37-42, strength 28-30, and uniformity 82-84 sold for around 35.75 cents per pound, FOB car/truck (Rule 5, compression charges paid).
South Central Markets Regional Summary
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 slow. No forward contracting was reported. Cotton was being delivered to fulfill contracts.
Warm and sunny conditions prevailed during the week. Seasonably mild overnight temperatures were in the 50s and 60s. Daytime highs were in the 70s. No rain was reported. Producers reported that fieldwork; including burndown, fertilizer applications, and planting was underway. Planting was expected to increase rapidly after a slow start.
According to the National Agricultural Statistics Service’s Crop Progress Report released April 30, planting was at 2 percent in Arkansas, 3 in Missouri, and 1 percent in Tennessee. Planting in Arkansas and Missouri was about one week behind the five-year average. A storm front was expected to bring thunderstorms and scattered rain showers to the region in the near term.
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. Cotton was being delivered to fulfill contracts.
Typical springtime weather was observed during the period. Daytime temperatures were in the upper 70s and 80s. Overnight lows were in the 50s and 60s. Outdoor activities were in full swing. Producers were attempting to complete as much fieldwork as possible ahead of forecast rain. Soil temperatures had reached the optimal range for good germination in most areas. Some fields in low-lying areas had not dried sufficiently to support equipment.
According to the National Agricultural Statistics Service’s Crop Progress Report released April 30, planting was at 5 percent in Louisiana, about two weeks behind the five-year average, and slightly behind in Mississippi at 7 percent completed.
- A moderate volume of CCC-loan equities traded at around 25.00 cents per pound.
- No trading activity was reported.
Southwestern Markets Regional Summary
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 active. Foreign inquiries were light.
The stands continued to advance to the squaring stages in the Coastal Bend and in the Upper Coast. Some replanting was reported in fields that were adversely affected by winds as high as 70 miles per hour. Planting neared completion.
Recent rainfall helped alleviate droughty conditions in some fields in the Rio Grande Valley, but more rainfall is needed. Planting advanced in east Texas and some stands had begun to emerge. Planting was behind schedule due to unseasonably cool temperatures and two freezing events in April. Soggy fields from recent rainfall also slowed fieldwork. Producers scrambled to sow seed ahead of thunderstorms late in the reporting period.
Some of the gins in Kansas and Oklahoma have completed their season, but those in operation have another 30 days remaining. Field preparations were underway.
Producers have planted 6 percent of the crop in Oklahoma, according to the National Agricultural Statistics Service’s Crop Progress report released on April 30.
Kansas has not begun to plant due to unseasonable cool conditions.
Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were lower. Producer interest in forward contracting was light, due to droughty conditions. Trading of CCC-loan equities was slow. Foreign inquiries were light.
Windy conditions prevailed with gusts up to 60 miles per hour during storms, and as much as 40 miles per hour during daytime hours. Although some rainfall was received, the region continued to be gripped by extremely dry conditions. Isolated areas received less than 1 inch of beneficial moisture early in the reporting period. Additional rainfall was received on May 3 as a storm line formed east of Lubbock and continued to move in an easterly direction. Any precipitation received will be beneficial for building rows and seed germination.
Producers evaluated planting decisions and planned accordingly. Some considered dusting seed into dry soil with the expectation that May would bring more traditional rainfall. Fertilizer and pre-plant herbicides were applied. Cotton planting will follow corn planting in the panhandle. One gin plant continued operations, and is the last gin in operation across the state.
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- In Oklahoma, a light volume of mostly color 21, leaf 3, staple 37, mike 39-43, strength averaging 28.6, and uniformity 78-81 sold for around 77.00 cents per pound, FOB car/truck (compression charges not paid).
- A mixed lot containing a light volume of mostly color 22, leaf 2 and 3, staple 35 and 36, mike 37-43, strength 28-31, and uniformity 78-82, sold for around 74.50 cents, same terms as above.
- A light volume of mostly color 31, leaf 3 and 4, staple 33 and longer, mike 35-40, strength 26-32, and uniformity averaging 78.8 sold for around 69.00 cents, same terms as above.
- A heavy volume of CCC-loan equities traded for 13.25 to 24.25 cents.
- A light volume of color 31 and better, mostly leaf 1 and 2, staple 35, mike 37-45, strength 27-32, and uniformity 78-82 sold for around 77.00 cents per pound, FOB car/truck (compression charges not paid).
- A light volume of color 21, leaf 3 and 4, staple 36 and 37, mike 26-33, strength 27-32, and uniformity 77-80 sold for around 52.00 cents, same terms as above.
- Mixed lots containing a light volume of color 43 and better, leaf 4 and better, staple 33-36, mike 37-45, strength 23-29, and uniformity averaging 79.1 sold for around 62.00 cents, same terms as above.
- A light volume of CCC-loan equities traded for around 13.75 cents.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were higher. Forward contracting was moderate. Producers were encouraged to book a minimum of new-crop cotton as all eyes are on west Texas, if they receive timely rainfall. No domestic mill activity was reported. Foreign mill inquiries were light.
Hot, dry conditions advanced the crop in the DSW. Strong, afternoon winds dried top soil conditions. Some central Arizona producers removed hard-crusted soil caps to allow seedlings to emerge. Some producers planted in the morning to avoid disturbing the soil and to keep it from drying out. The crop made good progress. Warehouses were busy shipping cotton.
Local sources reported planting continued in New Mexico and El Paso, TX as weather conditions permitted. Gusty winds were reported. Some cotton was up to a stand, with help of removing soil caps. Very little replanting was reported. The young crop made good progress. Sources stated water availability was good and expected more cotton to be planted in Hudspeth County, TX.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate for color 21, leaf 2, and staple 37 and longer.
Temperatures were mostly in the 70s and 80s, with breezy conditions. The crop made excellent progress.
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 moderate and mostly for new-crop price discovery. Price ideas between shippers and mills produced few new sales for 2018-crop cotton. Interest was best from China and Japan.
Temperatures were mostly mild in the 70s to high 80s for the Far West. No moisture was recorded in the period. Gusty winds dried top soil moisture in Arizona and New Mexico. Planting was completed in Arizona and California. Planting continued in New Mexico and El Paso, TX. Sunny skies and warm conditions advanced the young cotton crop. Sources in Arizona and California reported the crop made good progress. Seedling emergence was good in El Paso, TX.
- A moderate volume of 2018-crop cotton, color 31 and better, leaf 3 and better and staple 36 and longer was forward contracted at even ICE December futures.
San Joaquin Valley
- No trading activity was reported.
- No trading activity was reported.