USDA – Weekly Cotton Market Review: January 16, 2015

0
117

Weekly Cotton Market Review

Average spot cotton quotations were 29 points lower 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 58.64 cents per pound for the week ended Thursday, January 15, 2015. The weekly average was down from 58.93 cents last week and 80.63 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 59.36 cents on Friday, January 9 to a low of 57.95 cents on Wednesday, January 14. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended January 15 totaled 89,180 bales. This compares to 74,424 bales reported last week and 139,850 bales reported a year ago. Total spot transactions for the season were 1,145,301 bales compared to 922,929 bales the corresponding week a year ago. The ICE March settlement prices ended the week at 59.49 cents, compared to 60.56 cents last week.

Prices are in effect from January 16-22, 2015 
Adjustment World Price (AWP) 46.77 		ELS Competitiveness Payment 0.00 
Loan Deficiency Payment (LDP)   5.23  		Fine Count Adjustment  2013 Crop 0.58 
Coarse Count Adjustment (CCA)   0.00 		Fine Count Adjustment 2014 Crop 0.48 
Source: Farm Service Agency, FSA, USDA

USDA ANNOUNCES SPECIAL IMPORT QUOTA #23 FOR UPLAND COTTON January 15, 2015

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 January 22, 2015 allowing importation of 14,636,612 kilograms (67,225 bales) of upland cotton. Quota number 23 will be established as of January 22 and will apply to upland cotton purchased not later than April 21, 2015, and entered into the U.S. not later than July 20, 2015. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period July 2014 through September 2014, 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.

Regional Summaries

Southeastern Markets

Spot cotton trading was moderate.  Supplies and producer offerings were moderate.  Demand was good. Average local spot prices were weak. Trading of CCC-loan equities was inactive.  Overcast and seasonably cold conditions prevailed across the region during much of the period and heavy fog settled over portions of the southeast early week. Light to moderate localized shower activity was received in most areas. Precipitation totals measured one to two and three-quarter inches of daily accumulated rainfall in areas of the Carolinas and Virginia. Lesser totals were reported in the lower southeast. Fieldwork was limited due to wet and soggy conditions. A period of dry and sunny weather would be welcome to help soft soils to firm.  Many gins had gone to gin days in Georgia, but some gins continued to process backlogs of modules.  Ginning activity was rapidly winding down in the Carolinas. Producers and industry members made plans to attend annual conferences, meetings, and workshops.

South Central Markets

North Delta

Spot cotton trading was inactive. Supplies of available cotton were light.  Demand was good. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No forward contracting was reported. Seasonal winter weather conditions prevailed during the week. Daytime high temperatures were in the 30s and 40s.

Overnight lows were in the teens and 20s. Scattered rain showers brought up to one inch of rain to parts of the region. According to the U.S. Drought Monitor, an area of moderate drought has developed in northeastern Arkansas and western Tennessee due to below-average rainfall in the past months. Producers considered planting options for next season by carefully studying cash-flow for their particular operation based on competing commodity prices. Producers participated in local agricultural workshops and made plans to attend regional cotton meetings.

South Delta

Spot cotton trading was slow.  Supplies of available cotton were light. Demand was good.  Average local spot prices were weak. Trading of CCC-loan equities was inactive.

No forward contracting was reported. Typical winter weather conditions prevailed during the week. Daytime high temperatures were in the 30s and 40s. Overnight lows were in the teens and 20s. Scattered rain showers brought up to three inches of rain to parts of the region. According to the U.S. Drought Monitor, soil moisture levels were adequate throughout the region. Producers considered planting options for next season by carefully studying cash-flow for their particular operation based on competing commodity prices. Producers participated in local agricultural workshops and made plans to attend regional cotton meetings.

Southwestern Markets

East Texas-Oklahoma

Spot cotton trading was moderate.  Supplies were moderate. Producer offerings were light. Demand was good. Average local spot prices were steady. Trading of CCC-loan equities was inactive.  Foreign mill inquiries were heavy. Rainy conditions persisted over the weekend in east Texas and ginning continued uninterrupted.  The season was nearing the end.

In south Texas, daytime temperatures were in the low 40s to low 60s, and nighttime temperatures were in the 30s and 40s. Some showers brought light moisture to the area that was readily absorbed into the soil.  The Rio Grande Valley received rainfall during the week.  The Corpus Christi Classing Office was 99 percent completed.  In Oklahoma, morning drizzle gave way to a warming trend mid-week.  Ginning continued uninterrupted. Backlogged modules on gin yards were processed. Western Kansas experienced weather delays and gins were caught up with the backlog of modules.  Eastern Kansas gins continued pressing operations.  Meetings were attended.

West Texas

Spot cotton trading was active.  Supplies and producer offerings were heavy.  Demand was good. Average local spot prices were steady. Trading of CCC-loan equities was inactive. Foreign mill inquiries were heavy. Ginning was finalized at some gins, but most were caught up to the cotton that was still on the stalks. Several weeks of intermittent weather delays limited fieldwork and interrupted pressing operations. Industry experts reported that about 10 percent of fields remained to be harvested.  Some stalk cutting was underway in fields that firmed enough to support equipment, but some stalk cutting machinery was stuck in soggy fields. Sunshine and drier conditions were needed to improve soils and finalize fieldwork.  The Abilene Classing Office was 84 percent completed, the Lamesa Classing Office was 85, and the Lubbock Classing Office was 89 percent completed as of January 16.  Some shift work was adjusted to meet the reduced number of receipts that were received in the classing offices.  Industry meetings were attended.

Western Markets

Desert Southwest (DSW)

Spot cotton trading was active. Producer offerings were moderate.  Demand was steady.    Average local spot prices were weak. No forward contracting or domestic mill activity was reported.

Foreign mill inquiries were moderate. Labor issues at west coast ports were a concern.   Temperatures were mostly in the high 60s in Arizona.  Daytime temperatures were in the mid-40s to low 50s for cotton-growing areas of New Mexico and El Paso, Texas.  Ginning continued.

San Joaquin Valley (SJV)

Spot cotton trading was inactive.  Supplies were light. Demand was moderate.  Average local spot prices were weak. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Merchants and shippers were concerned about labor issues at west coast ports.  Some ships were waiting just outside of the harbor to unload and load. Dense early morning fog was prevalent in the period.  Temperatures were mostly in the mid-60s.  Ginning was completed.  Producers considered 2015 planting options.

American Pima (AP)

Spot cotton trading was active. 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. Merchants and shippers were concerned about labor issues at west coast ports.  As a result, ships were waiting just outside the harbor to unload and load.  Temperatures were in the 60s for Arizona and California.  Daytime temperatures were in the mid-40s to low 50s for cotton-growing areas of New Mexico and El Paso, Texas.  Ginning continued in the far west.

Textile Mill

Domestic mill buyers inquired for a moderate volume of color 53 and better, leaf 5 and better, and staple 32 and longer for May through July delivery. Demand was also good for color 41, leaf 4, and staple 34 and longer for nearby delivery. No sales were reported. Demand for open-end and ring-spun yarn remained good.  Load out dates at some warehouses were reported into March. Demand through export channels was moderate.  Agents throughout the Far East inquired daily for any discounted styles of cotton. No sales were reported.

Regional Price Information

Southeastern Markets

Heavy volume mixed lots containing color mostly 21 and 31, leaf 2-4, staple mostly 37 and 38, mike 43-52, strength 28-31, and uniformity 80-83 sold for around 550 points on ICE March futures, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).

A moderate volume of color mostly 31, leaf 3 and 4, staple  mostly 35 and 36, mike 43-49, strength 30-33, and uniformity 80-83 sold for 300 to 350 points on ICE March futures, same terms as above.

Mixed lots containing color 33 and better, leaf 2 and 3, staple 34-36, mike 43-52, strength 28-31, and uniformity 80-83 sold for around 75 points on ICE March futures, same terms as above.

North Delta

No trading activity was reported.

South Delta

A moderate volume of even-running cotton, color 41, leaf 5, staple 36 and 37, mike, 40-49, strength averaging 29.8, and uniformity averaging 81.1 traded for around 58.25 cents per pound,            FOB car/truck (Rule 5 compression charges paid).

East Texas

In Oklahoma, a light volume of  color 21 and 31, leaf 4 and better,  staple 37, mike 36-39,  strength 29-30, and uniformity 78-80 sold for around 59.00 cents per pound, FOB car/truck  (compression charges not paid).

A light volume of color 31 and better, leaf mostly 4 and 5, staple 37 and longer, mike averaging 48.3, strength averaging 35.4, and uniformity averaging 81.8 traded for around 56.00 cents,         same terms as above.

A light volume of color mostly 21, leaf 3 and better, staple 37 and longer, mike 47-53, strength 31-34, and uniformity 81-84 sold for around 55.00 cents, same terms as above.

West Texas

A moderate volume of mostly color 11 and 21, leaf 3 and better, staple 35 and longer, mike 37-47, strength 29-31, and uniformity 80-82 sold for around 60.00 cents per pound, FOB car/truck          (compression charges not paid).

A heavy volume  of color 31 and 21, leaf 4 and better, staple 36 and longer,  mike 39-45,  strength 26-31, and uniformity 78-82 sold for around 55.50 cents, same terms as above.  Mixed lots containing a moderate volume of color 21 and better,  leaf 3 and better, staple 36 and 37, mike 28-33, strength 29-32, and uniformity 80-81 sold for around 48.50 cents, same terms as above.

Desert Southwest

No trading activity was reported.

San Joaquin Valley

No trading activity was reported.

American Pima

A heavy volume of mostly color 1, leaf 1, staple 48 and longer, and mike 35-42 sold for around        165.00 cents per pound, UD free, FOB warehouse.

A heavy volume of color 1, leaf 1, staple 48 and longer, mike averaging 38, strength averaging 43.6, and uniformity averaging 85.8 sold for around 160.00 cents, same terms as above.

Source: USDA

LEAVE A REPLY