Average spot cotton quotations were nearly one and one-quarter cents higher 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 70.28 cents per pound for the week ended Thursday, June 21, 2012. The weekly average was up from 69.11 cents last week , but down from 135.28 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 73.63 cents on Friday, June 15 to a low of 65.46 cents on Thursday, June 21. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 21 totaled 10,346 bales. This compares to 5,461 bales last week and 1,222 bales reported a year ago. Total spot transactions for the season were 874,717 bales, compared to 643,425 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 67.25 cents, compared to 70.30 cents last week.
Prices are in effect from June 22-28, 2012 Adjustment World Price (AWP) 63.70 ELS Competitiveness Payment 0.00 Loan Deficiency Payment (LDP) 0.00 Fine Count Adjustment 2011 Crop 0.40 Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2012 Crop 0.60 Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #19 FOR UPLAND COTTON June 21, 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 28, 2012, allowing importation of 14,026,929 kilograms (64,747 bales) of upland cotton. Quota number 19 will be established as of June 28, 2012, and will apply to upland cotton purchased not later than September 25, 2012, and entered into the U.S. not later than December 24, 2012. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period February 2012 through April 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 moderate. Supplies were moderate. Demand was moderate. Producer offerings were light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting activity was reported.
Around one-quarter of an inch of moisture was received in coastal Alabama early in the period. Elsewhere, mostly hot and dry conditions prevailed with daytime temperatures in the high 80s to low 90s. Producers welcomed the warm and sunny weather which helped to firm soils and dry water logged fields. Herbicide and fertilizer applications were underway, which had been delayed due to wet weather in recent weeks. According to the National Agricultural Statistics Service, squaring was well underway in Alabama at 57 percent, 44 in Georgia, 35 in Virginia and 17 percent in South Carolina. In North Carolina, squaring was well behind the average at nine percent. Local experts reported that fields that had been replanted in North Carolina were now at the cotyledon stage. Producers scouted fields and applied sprays for aphid infestations.
South Central Markets
Spot cotton trading was slow. Producer offerings and supplies were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was slow. No forward contracting was reported.
Rain showers early in the period caused fields in low-lying areas to remain flooded. Mostly clear conditions prevailed during the period with daytime high temperatures in the high 80s to low 90s. Scattered thunderstorms brought localized precipitation to some areas over the weekend. The Missouri boot heel received around one-quarter of an inch of beneficial rainfall. The crop progressed well under the hot conditions. Squaring neared completion in Arkansas and around one-third of the crop was squaring in Tennessee and Missouri, according to the National Agricultural Statistics Service. Fieldwork continued uninterrupted and producers applied nitrogen and herbicides.
Spot cotton trading was inactive. Supplies were moderate. Producers offerings were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Fieldwork was interrupted as locally heavy rainfall was received in portions of north Louisiana and Mississippi early in the period. Precipitation accumulations totaled one-half of an inch to two inches in some areas. The crop progressed well under warm conditions and squaring was underway on the balance of the crop throughout the region. Local experts reported that glyphosate-resistant Palmer amaranth (pigweed) is spreading rapidly throughout fields in Louisiana this season.
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.
In Texas, rainfall was limited in the Rio Grande Valley, south Texas, and the Upper Coast during a critical time for crop advancement. Every day absent of significant rainfall decreased yield potential. Plants were stressed from hot, windy conditions. The crop continued to bloom, and some fields had squared and set bolls. Fields in central and east Texas fared better as most areas received some rainfall that helped advance the crop. Producer optimism was high as timely rainfall encouraged strong crop vigor. In eastern Kansas, most dryland areas received precipitation that spurred early season growth. The southwestern areas remained markedly dry, but the acreage is irrigated so the stands continued to progress. Local reports indicated that the crop was about two weeks ahead of normal. Thrips populations expanded and treatments were applied. In Oklahoma, beneficial rain events helped advance dryland and irrigated stands. Cotton had begun to square.
Spot cotton trading was slow. 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 slow. Foreign mill inquiries were very light.
Planting and replanting was completed with most stands progressing as expected. All areas received varied amounts of rainfall that proved beneficial for early-season growth. High winds and hail accompanied the storms; limited damage was reported. Established stands were uniformed and progressing as expected. Producers actively turned the soil between the rows to bring the clods to the surface in an effort to help prevent blowing sand. Windy, sunny conditions were prevalent with daytime temperature highs in the upper 90s.
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Fresh inquiries were reported on June 20, as July-12 futures trended lower. Most foreign mills remained on sidelines as July-12 futures remained volatile during the reporting period. No domestic activity was reported.
Hot, dry conditions prevailed in the DSW; however, reports indicated that early monsoon activity was expected. Blooming continued in Yuma, Arizona. Cotton made good progress in central and eastern Arizona. No significant insect pressures were reported. Cotton progressed normally in New Mexico and El Paso, Texas. Approximately 35 percent of the crop was squaring in New Mexico.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. Most foreign mills remained on sidelines as July-12 futures remained volatile during the reporting period. Shippers were ready for July-12 futures contract to be removed from board. No forward contracting or domestic mill activity was reported.
High temperatures reached around the mid-to-high 100s early in the period. Some fields were treated for lygus and spider mites. Initial blooming was reported in the south Valley. Recent reports indicated that various degrees of herbicide damage were discovered in Central Valley cotton fields as far as 100 miles away from the initial location. Sources indicated that approximately 10,000-15,000 acres of cotton were affected. The most commonly reported damage was curled or brown leaves. Cotton fields closest to drift source were heavily affected. No damage to squares was reported. Growers were concerned about yield potential. Local experts and growers will continue to monitor the crop. No fields were to be abandoned at this time. The California State Department of Agriculture Pink Bollworm program had mapped approximately 317,430 acres of cotton in the SJV as of June 9.
American Pima (AP)
Spot cotton trading was slow. Supplies were moderate. Demand was light. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Excessive heat warnings were in effect for southern and central Arizona. Several fields were approaching peak bloom. Early-planted AP was blooming in the southern San Joaquin Valley (SJV). No significant insect pressures were reported. Herbicide damage was reported in some fields in the SJV. Growers continue to monitor the crop. Overall, the crop made good progress in the far west. The California State Department of Agriculture Pink Bollworm program had mapped approximately 317,430 acres of cotton in the SJV as of June 9.
Domestic mill buyers inquired for a moderate volume of 2012-crop cotton, color 41 and better, leaf 4 and better, and staple 34 and longer for third quarter 2012 and first quarter 2013 delivery. No sales were reported. Most mills have covered their immediate-to-nearby raw cotton needs. Most mills operated five to seven days; some mills had reduced schedules to manage inventories. Reports indicated that some mills had also delayed deliveries of previously booked raw cotton, due to lackluster finished product sales.
Inquiries through export channels were moderate. Demand was best for any discounted or low-grade styles. No sales were reported.
Regional Price Information
A moderate volume of color 21-41, leaf 2 and 3, staple 34 and longer, mike 43-49, strength 28-31, and uniformity 80-83 sold for 100 to 250 points off ICE July futures, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
A light volume of color mostly 21 and 31, leaf 2 and 3, staple 34 and longer, mike 47-49, strength 2931, and uniformity 80-82 sold for around 88.00 cents, same terms as above.
Mixed lots containing color 51 and better, leaf 2-4, staple 34 and longer, mike 35-49, strength 28-31, and uniformity 80-82 sold for around 78.00 cents, same terms as above.
A light volume of color 52 and 62, leaf 3 and 4, staple 33-35, mike 50-52, strength 28-31, and uniformity 80-82 sold for 55.00 cents per pound, FOD car/truck (Rule 5, compression charges paid.)
South Central Markets
A moderate volume of CCC-loan equities traded for 15.25 to 17.50 cents per pound.
No trading activity was reported.
In Oklahoma, a light volume of color 21, leaf 2, staple 35 and 36, mike averaging 44.3, strength averaging 30.9, and uniformity averaging 81.1 sold for around 80.00 cents per pound, FOB car/truck (compression charges not paid).
A light volume of color mostly 21, leaf 2 and 3, staple 36 and 37, mike 40-42, strength 28-30, and uniformity 81-82 sold for around 80.00 cents per pound, FOB car/truck (compression charges not paid).
Mixed lots containing color mostly 31 and better, leaf 3 and 2, staple 35, mike 25-47, strength 27-30, and uniformity 78-82 sold for 60.00 to 64.00 cents, same terms as above.
A moderate volume of color mostly 21 and 31, leaf 5 and better, staple 36 and longer, mike 27-33, strength 28-31, and uniformity 78-80 sold for around 59.50 cents, same terms as above.
A light volume of CCC-loan equities traded for 15.00 to 17.00 cents.
A light volume of 2011-crop cotton was sold for prompt shipment to Far East mills. A light volume of new-crop cotton color 31 and better, leaf 3 and better, and staple 35 and longer was contracted for around 250 points off December-12 futures.
San Joaquin Valley
No trading activity was reported.
No trading activity was reported.