Weekly Cotton Market Review

Transcription

1 Mp_cn812 USDA, AMS, Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, Tennessee Vol. 98 No. 51 July 28, 2017 Inside this Issue Market Overview Price Support Southeastern South Central Southwestern Western Textile Mill Report Price Information Spot Quotations ICE Futures A Index Pima Quotations Weekly Cotton Market Review Average quotations were 4 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 35-3 and 43-49, strength , uniformity ) in the seven designated markets averaged.58 cents per pound for the week ending Thursday, July 27, The weekly average was up from 5.94 last week, but down from cents reported the corresponding period a year ago. Daily average quotations ranged from a low of.18 cents Monday, July 24 to a high of 7.4 cents Thursday, July 27. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 27 totaled 1,271 bales. This compares to 1,23 bales reported last week and 3,977 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,5,571 bales compared to 1,523,422 bales the corresponding week a year ago. The ICE October settlement prices ended the week at cents, compared to 9.55 cents last week. Prices are in effect from July 28 - August 3, 2017 Adjusted World Price (AWP).29 ELS Competitiveness Payment 0.00 Loan Deficiency Payment (LDP) 0.00 Fine Count Adjustment 201 Crop 0.00 Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2017 Crop 0.00 Source: Farm Service Agency, FSA, USDA Contact Us cottonmn@usda.gov

2 Regional Summaries Southeastern Market 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. Sunny to mostly cloudy conditions prevailed across the lower Southeast during the period. Daytime high temperatures were in the upper 80s to lower 90s. Spotty, scattered showers brought trace amounts to around 1 inch of weekly accumulated moisture to portions of south Alabama, the Florida panhandle, and south Georgia. The crop progressed well and the warm weather invigorated plants as heat units began to accumulate. In Alabama, crop maturity varied as a lot of acreage had to be replanted; some areas are several weeks behind and will be late maturing. Fieldwork continued between rain events in areas where soils were firm enough to support equipment. Producers applied growth regulators and treated fields for plant bugs and stink bugs. Local experts reported whiteflies were building and met threshold limits in some fields in Georgia. Sunny to partly cloudy conditions were observed across the upper Southeast during the week with daytime highs in the upper 80s to upper 90s. Localized shower activity brought around one-half of an inch of weekly accumulated moisture to some areas, but overall conditions were reported as hot and dry in the Carolinas and Virginia. The heat advanced crop maturity and producers monitored fields for insect pressure and applied chemicals as needed. According to the National Agricultural Statistics Service s Crop Progress report released July 24, boll-setting reached 53 percent in South Carolina, 51 in North Carolina, 48 in Georgia, 45 in Alabama, and 41 percent in Virginia. The crop condition was rated mostly good to excellent in South Carolina, and mostly fair-to-good elsewhere in the southeastern region. South Central Markets 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. Mostly clear and hot climatic conditions prevailed during the period. Daytime temperatures were in the 90s, but heat indexes soared as high as 115 degrees in the Memphis territory. The National Weather Service issued excessive heat warnings. Overnight lows were in the mid-70s. Brief, pop-up, afternoon showers provided little relief from the oppressive temperatures. No significant rainfall was reported. Cotton extension specialists reported that there is very little evidence of boll shedding in spite of the high temperatures, which they attributed to well-established root systems and timely rains. The crop made good progress under excellent conditions. Irrigation pumps were running at capacity in most cases to maintain adequate soil moisture levels for normal plant development. Plant growth regulators were applied as necessary. Local experts reported increasing bollworm pressure. Treatments were applied as necessary to control outbreaks. The proliferation of dicamba-related crop injury reports has prompted the Arkansas Plant Board to institute a ban on the use of dicamba. According to the National Agricultural Statistics Service s Crop Progress report released July 24, boll-setting reached 93 percent in Arkansas, 20 in Missouri, and 47 percent 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. Open skies and hot temperatures characterized weather conditions during the period. Daytime temperatures were in the 80s to 90s. Overnight lows were in the 70s. Pop-up afternoon thunderstorms brought light amounts of moisture to some areas late-week. Some isolated areas received as much as 1 inch; producers were irrigating in most cases to meet the needs of the maturing crop. Local experts reported that insect pressure was building due to the hot weather. Fields were treated to control hotspots. According to the National Agricultural Statistics 2

3 Regional Summaries Service s Crop Progress report released July 24, boll-setting reached 77 percent in Louisiana and 55 percent in Mississippi. Southwestern Markets East Texas-Oklahoma Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. In the Rio Grande Valley, most of the gins were operating around the clock keeping pace with modules that had accumulated on gin yards. Intermittent showers briefly slowed some harvesting activities. In south Texas, most of the gins were operating and submitted samples to the Corpus Christi Classing Office for grading services. In central Texas, timely and abundant rainfall had advanced the crop to full-canopy covering the rows. Some areas received up to 3 inches of precipitation early in the reporting period. Fields bloomed. Industry members are encouraged with the yield potential that is expected to be more than 800 pounds per acre. All fields are dryland and show the potential for two or more bales per acre. Experts continued to monitor for plant pests, including stinkbugs. In Kansas, daytime temperature highs were in the upper 80s to low 100s. Rainfall was received late in the reporting period that helped plants to retain fruit and alleviate heat stress. More rainfall is needed. According to the National Agricultural Statistics Service s (NASS) Crop Progress report released on July 24, squaring was 44 percent compared to 52 percent last season. Setting bolls was the same as last season at 8 percent. In Oklahoma, stands continued to set squares and some had begun to bloom in irrigated fields. Early-planted dryland made good progress and late-planted dryland struggled. More rainfall would be helpful for the dryland fields. Irrigation water had been released and flowed into the fields. According to NASS, squaring reached 5 percent, compared to 8 percent last season. Setting bolls was up 2 points from last season at 20 percent. West Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. The crop advanced under hot, muggy conditions. Daytime temperature highs were in the low 90s to low 100s. Overnight lows were in the lower 70s. Some fields received rainfall. More rainfall is needed as fields begin to bloom and water demand increases. Generally, the area is considered 0 percent dryland and 40 percent irrigated at this time. Producers fertilized and irrigated fields. Some applied plant growth regulators to encourage fruiting on vegetative plants. Plant pests were mostly light. According to the National Agricultural Statistics Service s Crop Progress report released on July 24, squaring in Texas had reached 70 percent, compared to 80 percent last season. Setting bolls was at 2 percent, compared to 33 percent last season. Western Markets 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 in Yuma, Arizona ranged from 100 to 107 degrees. Nighttime temperatures were in the mid-to-upper 80s. Bolls had begun to open in Yuma, Arizona. Most producers applied the final irrigation as harvest season approaches. Harvesting is expected to commence around mid-august. In central Arizona, heavy rainfall brought standing water to low-lying areas and washed out some dirt roads used to access fields. Soggy fields interrupted fieldwork. Beneficial rainfall was received in Safford and fieldwork was limited during the reporting period. Contaminants from an earlier wildfire had begun to enter the washes through rains that flow into the irrigation supply. No problems have been observed from the contaminants, but industry members are monitoring the water quality. According to the National Agricultural Statistics Service s Crop Progress report 3

4 Regional Summaries released on July 24, in Arizona the condition of the crop was rated mostly good-to-fair. Setting bolls was the same as last season at 3 percent, compared to the five-year average at 1 percent. Squaring was reported at 92 percent compared to 94 percent last season, and near the five-year average of 93 percent. Stands advanced with temperatures consistently around 105 to 107 degrees in New Mexico and El Paso, Texas. The crop is in full-bloom and irrigation helped lessen heat stress for the plants. Fertilizer was applied and fields were mostly free of weeds. Insect pressure was light. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were higher. Producer interest in forward contracting was light. No domestic mill activity was reported. Foreign mill inquiries were light to moderate. The crop advanced with daytime temperatures in the upper 90s to low 100s. Large sized bolls had begun to set. Early retention was concerning because of temperature fluctuations coupled with a light to moderate lygus infestation, according to local sources. Insecticide treatments were applied to control plant pests. Irrigation was underway on drip and furrow irrigated fields. Plant growth regulators were applied. According to the National Agricultural Statistics Service s Crop Progress report released on July 24, the condition of the crop was rated 70 percent excellent and 30 percent good. Setting bolls was at 38 percent and trailed 1 points behind this time last season at 54 percent. The five-year average for setting bolls is 73 percent. Squaring was reported at 71 percent, compared to 89 last season, and the five-year average of 94 percent. 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 light. Hot, dry conditions continued in California. Fields in the San Joaquin Valley remained weed free, but some escapes were hand weeded. Sources reported that bolls were setting and that there is about three more weeks for harvestable bolls to develop. Producers made field by field decisions to determine if a final application of plant growth regulators were needed to maximize yield potential. Treatments were applied to control lygus and aphids. Monsoonal activity brought treacherous rainfall to Arizona. Fields were soggy and fieldwork came to a standstill. In Safford, the rainfall was beneficial and no damage was reported. Local experts monitored a growing concern surrounding rainfall in the mountains washing wildfire contaminants into the irrigation sources. Portions of southern New Mexico and El Paso, Texas received beneficial moisture. The crop advanced and boll-setting increased. Textile Mill Domestic mill buyers inquired for a moderate volume of 2017-crop cotton, color 51 and better, leaf 5 and better, and staple 34 and longer for November 2017 through May 2018 delivery. No sales were reported. The undertone from some domestic cotton shippers was cautious as they were unwilling to offer lower grade styles of cotton this early in the season. Reports indicated most mill have covered their immediate to nearby raw cotton needs. Most mills operated five to seven days. Demand through export channels was moderate. Vietnamese mill buyers purchased a moderate volume of color 31, leaf 3, and staple 3 for August/September shipment. Agents for mills in Korea and Taiwan purchased a moderate volume of USDA Green Card Class, 2017-crop cotton, color 31, leaf 3, and staple 3 for November 2017 through January 2018 shipment. 4

5 Photos Credits: Allred Insurance & Cotton Co. 5

6 Regional Price Information Southeastern Markets No trading activity was reported. South Central Markets North Delta A light volume mixed lot containing color mostly 41 and 51, leaf mostly 5 and, staple 35-38, mike 43-52, strength 30-32, and uniformity sold for around 2.75 cents per pound, FOB car/truck (Rule 5, compression charges paid). South Delta A light volume mixed lot containing color mostly 41 and 51, leaf mostly 5 and, staple 35-38, mike 43-52, strength 30-32, and uniformity sold for around 2.75 cents per pound, FOB car/truck (Rule 5, compression charges paid). Southwestern Markets East Texas In Texas, a light volume of new-crop color 21 and 31, leaf 1 and 2, mostly staple 33 and 34, mike averaging 4.5, strength 22-29, and uniformity sold for around cents per pound, FOB warehouse (compression charges not paid). In Oklahoma, a light volume of 201-crop cotton color mostly 31, leaf 3, staple 37 and 38, mike 41-44, strength 31-34, and uniformity sold for around cents, FOB car/truck (compression charges not paid). West Texas A light volume of 201-crop cotton color 31 and better, leaf 3 and better, staple 3 and longer, mike averaging 43.7, strength averaging 30.8, and uniformity averaging 81.8 sold for around 8.00 cents per pound, FOB car/truck (compression charges not paid). Western Markets No trading activity was reported. No trading activity was reported. No trading activity was reported. Desert Southwest San Joaquin Valley American Pima

7 Number of Bales in Certificated Stocks Delivery Points Stocks as of Awaiting Review Non-Rain Grown Cotton Dallas/FT. Worth, TX 14, Galveston, TX 5, Greenville, SC Houston, TX Memphis, TN 14, Total 34, Source: USDA, AMS and ICE U. S. Futures Average Price for Average Price for Fri Mon Tue Wed Thu Fri Mon Tue Wed Thu Market 21-Jul 24-Jul 25-Jul 2-Jul 27-Jul Market 21-Jul 24-Jul 25-Jul 2-Jul 27-Jul SE ND SD ETX WTX DSW SJV Mkt Avg Source: USDA, AMS, Cotton and Tobacco Program SE ND SD ETX WTX DSW SJV Mkt Avg Source: USDA, AMS, Cotton and Tobacco Program Spot Transactions Market Fri Mon Tue Wed Thu 21-Jul 24-Jul 25-Jul 2-Jul 27-Jul Upland SE ND SD ETX WTX DSW SJV Total Pima Source: USDA, AMS, Cotton and Tobacco Program 7

8 Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. SOUTHEAST NORTH DELTA SOUTH DELTA DESERT SOUTHWEST Staple EAST TEXAS-OKLAHOMA WEST TEXAS SAN JOAQUIN VALLEY Staple MIKE DIFFERENCES - POINTS PER POUND SOUTH- NORTH SOUTH E. TX WEST DESERT SJ EAST DELTA DELTA OK Mike Ranges TEXAS SW VALLEY AVG & Below Base Base & Above STRENGTH DIFFERENCES UNIFORMITY DIFFERENCES SOUTH- NORTH SOUTH E. TX Grams WEST DESERT SJ SOUTH- NORTH SOUTH E. TX Unit WEST DESERT SJ EAST DELTA DELTA OK per tex TEXAS SW VALLEY AVG. EAST DELTA DELTA OK TEXAS SW VALLEY AVG & below Base Base & above & above LANDED MILL QUOTATIONS - GROUP 201 MILL POINTS Cents per pound, even running lots, mike 35-49, strength 23.5 or more grams per tex, net weight, prompt shipment, delivered brokerage included. Quotations for group 200 mill points are slightly higher and for Alabama, Georgia and east Tennessee mills are slightly lower. SE GROWTH AREA DELTA GROWTH AREA TX-OK GROWTH AREA SJV GROWTH AREA Staple NQ NQ NQ NQ 32 NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ 33 NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ 34 NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ NQ 35 NQ NQ NQ 3 NQ NQ NQ NQ--No quote available July 27,

9 World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday Description and June June 30 July July July July July 28 August 3 Adjusted world price 1/ Coarse count adjustment Loan Deficiency Payment (LDP) / Color 41, leaf 4, staple 34, mike 35-3 & 43-49, strength readings of grams per tex, length uniformity of percent. Source: Farm Service Agency, USDA Date ICE futures contract settlement, designated spot market average for color 41, leaf 4, staple 34, and Far Eastern 'A' Index Color 41, Leaf 4, Staple 34 Far Eastern Futures Settlement 7-Market A Index 1/ Oct-17 Dec-17 Mar-18 May-18 Jul-18 Oct-18 Average Current Forward July July July July July / Far Eastern A Index furnished by Cotton Outlook of Liverpool. Date Color 41, Leaf 4, Staple 34 Cents per Pound Southeast North Delta South Delta East TX/OK West Texas Desert SW SJ Valley 7-Market Average July July July July July Source: USDA, AMS, Cotton and Tobacco Program, Cotton Market News Description Outstanding sales Exports Total export commitments New sales Buy-backs and cancellations Net sales Sales next marketing year Through July 21, 201 Marketing Years Week Mkt. Year Week - 92, ,500 8,107,200 32,800-9,033,300-57,500-32,800 12,900-4,500 44,00-28, ,100 2,431, , Through July 20, 2017 Mkt. Year 1,182,900 13,445,500 14,28,400 Net upland sales of 28,300 RB for 201/2017 were up 4 percent from the previous week, but down 77 percent from the prior 4-week average. Increases were reported for Pakistan (11,000 RB), Thailand (4,900 RB, including 1,400 RB switched from Japan), Bangladesh (4,400 RB), Indonesia (4,100 RB, including 2,00 RB switched from Japan), Mexico (4,000 RB), and Morocco (2,200 RB). Reductions were reported for Japan (7,00 RB) and Ecuador (200 RB). For 2017/2018, net sales of 232,00 RB reported primarily for Bangladesh (3,800 RB), Turkey (39,700 RB), Vietnam (27,300 RB), and South Korea (24,000 RB), were partially offset by reductions for Taiwan (1,800 RB). Exports of 32,800 RB were up 17 percent from the previous week and 27 percent fromthe prior 4-week average. The primary destinations were Turkey (88,500 RB), Vietnam (49,700 RB), China (30,400 RB), India (27,900 RB), and Bangladesh (25,900 RB). Net sales of Pima totaling 300 RB for 201/2017 resulted as increases for China (400 RB) and Thailand (100 RB, switched from Japan), were partially offset by reductions for Peru (200 RB) and Japan (100 RB). For 2017/2018, net sales of 3,800 RB were reported for India (1,700 RB), China (1,200 RB), and Thailand (900 RB). Exports of 7,900 RB were up noticeably from the previous week and 23 percent from the prior 4-week average. The destinations were primarily India (2,900 RB), China (2,200 RB), Indonesia (1,000 RB), and Japan (900 RB). Optional Origin Sales: For 2017/2018, new optional origin sales of 7,900 RB were reported for Indonesia. Exports for Own Account: New exports for own account totaling 7,800 RB were reported for Indonesia (,300 RB) and Thailand (1,500 RB). Decreases were reported to Indonesia (1,500 RB). Exports to Indonesia (1,500 RB), Thailand (1,500 RB), South Korea (1,200 RB), Vietnam (1,200 RB), and India (1,100 RB) were applied to new or outstanding sales. The current outstanding balance of 9,300 RB is for Indonesia (44,200 RB), Taiwan (14,400 RB), India (3,800 RB), Bangladesh (2,800 RB), South Korea (2,100 RB), Vietnam (1,500 RB), and Pakistan (500 RB) ,995,300 Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding. July 27,

10 American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/ AMERICAN PIMA SPOT QUOTATIONS Color Leaf Staple The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 3, / Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported. Range & Above Level Prep Other (Grams per Tex) Range Mike Diff. 2 & Below Strength & Above & Below Diff Extraneous Matter Diff. July 27,

11 Contact & Subscription Information Contact Information Division Director (901) Barbara Meredith Deputy Division Director (901) Cathy L. Greene Southeastern Area Reporter (478) Danny Pino Jr. South Central Area Reporter (901) Jeff Carnahan Southwestern Area Reporter (80) Jane Byers-Angle Western Area Reporter (559) Maria Townsend National Reporter (843) Veronica Williamson Subscription Information All Market News reports can be found on the internet, free of charge. Click here for reports. Subscribe to delivery of any Market News reports at Printed copies can also be obtained by contacting Market News headquarters at the following address: USDA, AMS, Cotton and Tobacco Program Cotton Market News Division - Room Appling Road Memphis, TN The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal or because all or part of an individual s income is derived from any public assistance program (not all prohibited bases apply to all programs). Persons with disabilities who require alternative means of communication of program information (Braille, large print, audiotape, etc.) should contact the USDA s TARGET Center at (202) (Voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington, DC or call (800) (voice) or (202) (TDD). USDA is an equal opportunity provider and employer. 11