Average spot cotton quotations were nearly two and one-half cents lower than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton 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 66.14 cents per pound for the week ended Thursday, May 31, 2012. The weekly average was down from 68.60 cents last week and 158.65 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 67.59 cents on Friday, May 25 to a low of 64.86 cents on Wednesday, May 30. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 31 totaled 1,027 bales. This compares to 9,859 bales last week and 3,984 bales reported a year ago. Total spot transactions for the season were 857,399 bales, compared to 610,792 bales the corresponding week a year ago. The ICE July settlement prices ended the week at 71.55 cents, compared to 73.94 cents last week.
Prices are in effect from June 1-7, 2012
Adjustment World Price (AWP) 62.52 ELS Competitiveness Payment 0.00 Loan Deficiency Payment (LDP) 0.00 Fine Count Adjustment 2011 Crop 0.48 Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2012 Crop 0.68 Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #16 FOR UPLAND COTTON May 31, 2012
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 June 7, 2012, allowing importation of 15,091,522 kilograms (69,315 bales) of upland cotton.
Quota number 16 will be established as of June 7, 2012, and will apply to upland cotton purchased not later than September 4, 2012, and entered into the U.S. not later than December 3, 2012. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period January 2012 through March 2012, 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.
Spot cotton trading was inactive. Supplies were moderate. Demand was moderate. Producer offerings were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Producer interest in forward contracting was very light as ICE futures continued to trend lower during the period.
Tropical Storm Beryl made landfall near Jacksonville, Florida early in the period and remnants of the system brought strong winds and heavy, soaking rainfall to areas of coastal Georgia and the Carolinas.
There were some reports of flash flooding in areas that received five to seven inches of precipitation and wind gusts toppled trees. The moisture improved drought conditions along the Southeast Atlantic coast, but rainfall totals diminished as the storms drifted inland. Planting activity was virtually complete in Alabama and Virginia and advanced at a rapid pace elsewhere in the region. Ideal weather conditions advanced early season growth. Pressure from thrips was sporadic and producers treated infestations as needed. Seedlings were maturing rapidly and local experts reported plants should be safe from injury from these pests once they reach the fourth true-leaf stage. Some fields in Alabama will have to be replanted due to grasshoppers and slugs feeding on stands. Fieldwork was delayed in areas of the Carolinas as producers waited for soft soils to firm.
South Central Markets
Spot cotton trading was inactive. Producer offerings and supplies were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.
The crop made fair progress under hot, dry conditions which adversely affected plant development. Plant growth ranged from first true-leaf to squaring. The National Agricultural Statistics Service reported topsoil moisture had declined precipitously and was rated at 82 percent short to very short in Arkansas, 72 in Missouri, and 51 percent short to very short in Tennessee. Local experts reported that pressure from insects not usually seen this early in the season increased, again due to the warm, dry weather. Produc- ers treated fields for thrips and plant bugs and applied herbicides and fertilizer as needed. Most areas were urgently in need of rain.
Spot cotton trading was inactive. Supplies were moderate. Producer offerings were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.
The crop advanced under hot, dry conditions. According to the National Agricultural Statistics Service (NASS), squaring was estimated at 2 percent in Louisiana and 1 percent in Mississippi. NASS also reported that topsoil moisture had declined compared to the previous period and was rated at 56 percent short to very short in Louisiana and 55 percent in Mississippi. Producers were irrigating to compensate for the lack of rainfall. Cotton extension specialists cautioned producers to carefully monitor fields for 3cornered alfalfa hoppers. There is no threshold level for this pest, so producers are advised to treat infested fields as soon as possible to avoid economic damage. Producers were also advised to closely monitor square retention in order to assess soil moisture conditions and the effectiveness of all crop protection chemicals.
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. Producer offerings were light. No forward contracting was reported. Trading of CCC-loan equities was inactive. Foreign mill interest was very light. Interest was best from Korea and Mexico.
In Texas, stands progressed and exhibited strong crop vigor. More general rainfall was needed in the dryland cotton-growing areas to ensure a high yielding harvest. Irrigation was underway. In Kansas, irrigated stands progressed, but the dryland failed to germinate and establish stands in most areas because of droughty conditions. The southeastern areas around Wellington received timely precipitation that helped the dryland achieve stand establishment. In southwestern Oklahoma, the irrigated stands emerged had advanced, but water availability for continued irriga tions was limited or non-existent. Some dryland has been planted, but producers waited for rainfall before planting more acres. In this area, most do not use well-water irrigation because the wells tend to run dry. Many producers double-crop, planting cotton behind the wheat harvest, making the cotton crop uninsurable. Producers maintain an open planting schedule, so planting deadlines do not apply.
Spot cotton trading was inactive. Supplies were moderate. Demand was very light. Average local spot prices were lower. Producer offerings were light. No forward contracting was reported. Trading of CCC-loan equities was inactive. Foreign mill inquiries were very light. Interest was best from Korea and Mexico.
In the High Plains mostly hot, dry conditions prevailed during a critical period for emerging dryland seedling stands that needed moisture. Temperatures in the 90s to low 100s, coupled with 20 to 45 miles per hour winds dried soils and presented less favorable growing conditions. Some areas in the Low Plains received heavy rainfall and damaging hail, but generally most cotton-growing areas remained parched and needed more rainfall. Well-irrigation was more prevalent since the soils were drying. Seedling stands emerged about six to seven days after planting. Insurance planting deadlines expired for counties north of Lubbock. The moisture situation was decidedly different around Abilene and San Angelo as planting activity was delayed as fields dried following isolated heavy rainfall.
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
In Arizona, planting activity rapidly neared completion and reports indicated some areas required replanting. The crop progressed rapidly under clear and hot conditions with temperatures in the high 90s to low 100s. Squaring had occurred on nearly one-quarter of the acreage according to the National Agricultural Statistical Service. Blooming was underway in many fields in Yuma. In southern California, a low pressure system brought cooler temperatures and light scattered rainfall to localized areas. Despite the cooler temperatures, seedlings were emerging at a rapid pace and squaring was underway in some of the earliest planted fields.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Fieldwork continued uninterrupted and the crop advanced at a rapid pace. Producers monitored fields and applied insecticides as needed.
American Pima (AP)
Spot cotton trading was inactive. Supplies were heavy. Demand was light. Average local spot prices were steady. No forward contracting was reported. No forward or domestic mill activity was reported. Foreign mill inquiries were light.
The crop matured rapidly throughout the region as ideal growing conditions prevailed during the period. Squaring was underway and blooming was reported in Yuma. Producers applied fertilizers.
Textile mill Inquiries from domestic mill buyers were light, no sales were reported. Reports indicated most mills have covered their immediate-to-nearby needs and demand for raw cotton was light despite sharply lower ICE futures prices in recent weeks. Finished product demand was lackluster and a few mills had eliminated shifts in order to reduce operating schedules. Demand for open-end yarn was slow to moderate; ring-spun yarn was slow. Some mills had also delayed delivery of previously booked cotton to maintain balanced inventories of finished products.
Regional Price Information
Mixed lots containing color mostly 41 and 51, leaf 3-7, staple 32 and longer, mike 35-49, strength 28-31, and uniformity 79-81 sold for around 59.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
South Central Markets
No trading activity was reported
A light volume of mostly color 41 and 51, leaf 5-7, staple 33 and longer, mike 35-49, strength 2632, and uniformity 78-83 sold for around 59.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
In Texas, a moderate volume of mixed-lots of color mostly 31 and 41, leaf 3, staple 35 and longer, mike averaging 50.7, strength averaging 28.3, and uniformity averaging 81.3, with 25 percent extraneous matter (seed coat fragments, grass, and bark) sold for around 53.00 cents per pound, FOB warehouse (compression charges not paid).
A light volume of color mostly 11, leaf 2, staple mostly 33, mike 35-45, strength 25-30, and uniformity 79-80 sold for around 64.50 cents per pound, FOB car/truck (compression charges not paid).
A light volume of color mostly 21 and better, leaf 2 and better, staple 33 and 34, mike 48-42, strength 28-30, and uniformity 78-80 sold for around 61.00 cents, same terms as above.
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
No trading activity was reported.
Upland Cotton: The May index, at 157, is up 4.7 percent from April and 15 percent above last year. The May price, at 95.10 cents per pound, is up 4.20 cents from the previous month and 11.90 cents above last May.
Source: National Agricultural Statistics Service, NASS, USDA