Average spot cotton quotations were 85 points 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 4349, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets averaged 67.48 cents per pound for the week ended Thursday, July 5, 2012. The weekly average was up from 66.63 cents last week, and 126.28 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 68.50 cents on Tuesday, July 3 to a low of 65.80 cents on Thursday, July 5. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 5 totaled 3,053 bales. This compares to 649 bales last week and 78 bales reported a year ago. Total spot transactions for the season were 878,419 bales, compared to 643,970 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 70.77 cents, compared to 69.51 cents last week.
Prices are in effect from July 6-12, 2012 Adjustment World Price (AWP) 62.84 ELS Competitiveness Payment 0.00 Loan Deficiency Payment (LDP) 0.00 Fine Count Adjustment 2011 Crop 0.32 Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2012 Crop 0.52 Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #21 FOR UPLAND COTTON July 5, 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 July 12, 2012, allowing importation of 13,484,389 kilograms (61,933 bales) of upland cotton. Quota number 21 will be established as of July 12, 2012, and will apply to upland cotton purchased not later than October 9, 2012, and entered into the U.S. not later than January 7, 2013. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period March 2012 through May 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 slow. Supplies were light. 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.
A persistent high pressure system lingered over the region and brought extremely high temperatures to most areas from central Alabama and Georgia to Virginia early in the period. Record temperatures in the low to mid-100s were recorded in many locales. Droughty conditions expanded in central Alabama and Georgia, and much of the dryland acreage remained under heat stress. South Alabama, south Georgia, and the Florida panhandle didn’t experience the intense heat due to recent moisture received from Tropical Storm Debby. Localized areas from south Alabama to the Carolinas received around one-half of an inch to one and one-half inches of accumulated precipitation throughout the week. Aphids thrived in the hot and dry conditions and producers applied sprays to infested fields. Squaring advanced rapidly and blooming was underway in the earliest planted fields. Producers considered irrigation schedule management as more of the crop reached first bloom and water requirements increased. Boll-setting had begun in all areas.
South Central Markets
Spot cotton trading was inactive. 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.
Hot, dry weather caused crop conditions to deteriorate during the period. Daytime temperatures soared above 100 degrees and rapidly depleted soil moisture throughout the region, especially on dryland fields. According to the U.S. Drought Monitor, the percentage of area rated as Severe Drought has gone from zero to 88 percent in Arkansas, zero to 85 in Tennessee, and zero to 79 percent in Missouri since the first fields of cotton were planted this spring. Approximately 82 percent of the crop in Missouri could experience yield reductions due to the lack of available soil moisture, 49 in Tennessee, and 40 percent in Arkansas, according to the National Agricultural Statistics Service (NASS).
NASS also estimated that boll setting had surged to 47 percent in Arkansas compared to 10 in Missouri and 3 percent in Tennessee. Producers treated fields for spider mites and plant bugs and irrigated steadily wherever possible.
Spot cotton trading was inactive. Supplies were moderate. Producer offerings were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported.
The crop made slow progress under continued hot, dry conditions. Producers were irrigating wherever possible. Central Mississippi was the only area in the region that enjoyed mostly adequate soil moisture conditions, while the U.S. Drought monitor rated Louisiana as mostly abnormally dry to moderate drought conditions. According to the National Agricultural Statistics Service, boll setting was estimated at 35 percent in Louisiana and 28 percent in Mississippi. Producers treated fields for aphids, spider mites, and plant bugs.
Spot cotton trading was slow. Supplies and demand were light. Average local spot prices were firm. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. No forward contracting or domestic mill activity was reported.
Temperatures were in the high 90s for most of central and south Texas. Thunderstorms brought one- quarter of an inch to two inches of rainfall in portions of the Winter Garden and Coastal Bend early in the reporting period. This moisture was beneficial in recovering sub-soil moisture levels, but was too late to aid plant development. Field activities consisted of defoliating early-maturing fields and preparing equipment for harvest. Scattered showers deposited one- quarter of an inch of rainfall in the lower Rio Grande Valley (RGV). Initial defoliation began in the RGV, with some harvesting reported. No ginning was reported. Approximately 50 percent of the crop had open bolls. Local industry representatives reported that the first 2012-crop bale was harvested and ginned in the Santa Rosa area. Hot, dry conditions prevailed in Kansas and Oklahoma. Dryland acreage made little progress under droughty conditions.
Trading of spot cotton was slow. Supplies were moderate. Demand was light. Average local spot prices were firm. No forward contracting or domestic mill activity was reported. Trading of CCC-loan equities was slow. Foreign mill interest was light and mostly for prompt shipment.
Temperatures were in the low to mid-90s for most of the period. Conditions remained dry in the region. Overall, local experts reported that cotton plants made little progress. Rainfall was needed to help advance the crop. Some blooms were sited in early-planted irrigated fields. Irrigation and fertilizing continued. Producers applied herbicides and monitor insect populations.
Desert Southwest (DSW)
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 light.
Temperatures were in the high 100s in Arizona, with scattered thunderstorms producing around one-quarter of an inch of rainfall in the period. Hot temperatures and high humidity levels caused some Level 1 heat stress for a couple of days early in the period. Overall, the crop made good progress. Boll setting was prevalent in western and central Arizona. Pest control advisors made sweeps to assess whitefly populations, as they become more active with hot temperatures. Temperatures were in the high 90s to mid-100s for New Mexico and El Paso, Texas. Scattered thunderstorms produced little rain for most cotton-growing areas of New Mexico. Approximately one- quarter of an inch received in the lower Rio Grande Valley of El Paso, TX. Producers irrigated cotton to combat heat stress to plants.
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 light and for prompt shipment. Temperatures were in the 90s which, helped advance the crop. The crop made good progress as blooming continues. Some boll setting was reported throughout the Valley. Lygus and spider mite activity increased. Control measures were made along with herbicide applications and second irrigations began.
American Pima (AP)
Spot cotton trading was slow. Supplies were moderate. Demand was light. Average local prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light and for prompt shipment. Hot, dry conditions were prevalent in the Desert Southwest (DSW) and San Joaquin Valley (SJV). Cotton growing areas of western and central Arizona and El Paso, TX received rainfall from afternoon thunderstorms. Thunderstorm potential remained in the forecast for the DSW as rising humidity levels indicated an early monsoon pattern. Some Level 1 heat stress was reported in some areas of Arizona. Boll setting increased in western and central Arizona. Crop conditions were mostly fair in New Mexico and El Paso, Texas. The crop made good progress in the SJV. Blooming continued and some boll setting was reported. Field activities in the far west consisted of irrigating and applying insecticides and herbicides.
Domestic mill buyers inquired for a moderate volume of color 42 and 51, leaf 5 and better, and staple 32 and longer for October through December delivery. No sales were reported. Most mills planned four to seven days of down time associated with the Fourth of July holiday.
Inquiries through export channels were moderate. Demand was best for any discounted or low-grade styles of cotton.
Regional Price Information
Mixed lots containing color mostly 41, leaf mostly 6 and better, staple 34 and longer, mike 43-49, strength 30-33, and uniformity 80-83 sold for 69.00 to 70.50 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
South Central Markets
A very light volume of CCC-loan equities traded for around 26.50 cents per pound.
No trading activity was reported.
In Kansas, mixed lots containing color 21 and better, leaf 3 and better, staple 35 and longer, mike 32-37, and strength averaging 27.9 sold for 53.00 cents per pound, FOB car/truck (compression charges not paid).
Mixed lots containing color 41 and better, leaf 3 and better, staple 33-35, mike 37-43, and strength averaging 30.0 sold for 60.00 cents, same terms as above.
In Oklahoma, a light volume of color 51 and better, leaf mostly 3, staple 33-35, strength averaging 29.0, with 85 percent bark traded for around 53.00 cents, FOB car/truck (compression charges not paid).
A light volume of color 21 and better, leaf 2 and better, staple 32 and longer, mike 35-49, and strength averaging 29.0 sold for 55.00 to 56.00 cents, FOB car/truck (compression charges not paid).
A light volume of CCC-loan equities traded for around seven and one-quarter cents.
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
A heavy volume of color 2, leaf 2, and staple 46 and longer traded for around 116.00 cents per pound, UD free, FOB warehouse.
A moderate volume of color 3, leaf 3, and staple 46 was traded for around 110.00 cents, same terms as above.
A light volume of mostly color 2 and better, leaf 2 and better, staple 44 and longer, mike 34-46, and strength averaging 39.2 traded for 95.00 cents, FOB warehouse.
Forward contracting of 2012-crop cotton: Upland cotton growers in the United States had booked about 10 percent of their expected acreage by the end of June this season. This was below the 26 percent booked through the same period last year. Contracting has been most active in the south central states where about 30 percent of the crop was under contract by the end of June and compares with 64 percent a year earlier. Southeastern states’ growers had forward contracted about 13 percent, compared with 31 percent in 2011. Southwestern states’ growers had contracted about 4 percent of the crop, compared to 14 percent last year. Growers in the western states had 4 percent of the crop under contract and compares with 3 percent at the end of June last year. These estimates were based on the National Agricultural Statistics Board’s June Planted Acreage report and informal surveys made by the USDA, Agricultural Marketing Service, Cotton Program.