Weekly average spot cotton quotations were 129 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 61.59 cents per pound for the week ended Thursday, May 28, 2015. The weekly average was down from 62.88 cents last week and lower than the 79.21 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 61.14 cents on Wednesday, May 27, to a high of 62.41 cents on Thursday, May 28. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 28, totaled 3,882 bales. This compares to 5,605 bales reported last week and 2,723 bales reported a year ago. Total spot transactions for the season were 2,064,406 bales, compared to 1,294,616 bales the corresponding week a year ago. The ICE July settlement prices ended the week at 64.33 cents, compared to 63.73 cents last week.
Prices are in effect from May 29 – June 4, 2015 Adjustment World Price (AWP) 50.04 ELS Competitiveness Payment 0.00 Loan Deficiency Payment (LDP) 1.96 Fine Count Adjustment 2014 Crop 0.28 Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2015 Crop 0.23 Source: Farm Service Agency, FSA, USDA
USDA ANNOUNCES SPECIAL IMPORT QUOTA #16 FOR UPLAND COTTON May 28, 2015
The Department of Agriculture’s Commodity Credit Corporation today 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 4, 2015, allowing importation of 14,667,427 kilograms (67,367 bales) of upland cotton. Quota number 16 will be established as of June 4, 2015, and will apply to upland cotton purchased not later than September 1, 2015, and entered into the U.S. not later than November 30, 2015. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period November 2014 through January 2015, 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 slow. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive.
Partly cloudy weather prevailed during the period and spotty shower activity brought scattered rainfall to much of Alabama, and portions of south Georgia and the Florida panhandle. In some areas, heavy localized downpours totaled around three-quarters of an inch. Producers continued to dust-in seed in areas that have missed precipitation, irrigation schedules were underway. Lesser day-to-day precipitation accumulations were observed in the Carolinas and Virginia, fieldwork was generally uninterrupted. Planting activity advanced in all areas; according to the National Agricultural Statistics Service Crop Progress Report released May 26, planting reached 84 percent completed in Virginia, 75 in South Carolina, 68 in North Carolina, 65 in Georgia, and 63 percent completed in Alabama. Producers applied pre-emergence herbicides to combat glyphosate resistant Palmer amaranth (pigweed) in areas of Georgia. Pressure from thrips was spotty; some of the earliest planted fields required spray treatments. A few isolated fields were replanted due to damage from grasshoppers.
South Central Markets
Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Partly cloudy skies and moderately cool temperatures predominated the weather pattern for the week, along with a few scattered thunderstorms. Daytime temperatures were in the low 80s and overnight lows were in the 60s. Several producers continue to mitigate planting and herbicide treatment in order to allow saturated fields to dry after receiving heavy rainfall from the previous week. As a result, some areas reported minor crop damage. Producers are weighing the options of whether to continue planting or re-plant with soybeans. There have been reports of thrips in the fields; however, their presence has likely diminished due to the heavy rains. According to the National Agricultural Statistics Service’s Crop Progress report released on May 26, planting advanced to 89 percent in Arkansas and 76 in Missouri and 70 percent in Tennessee.
Spot cotton trading was slow Supplies and producer offerings were very light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported.
Isolated thunderstorms and cool conditions prevailed during the period. Temperatures ranged from the mid-80s in the daytime to the mid-60s overnight. Producers in the region have nearly finished planting. Some cotton has begun to square. The remaining fields are likely to be re-planted with soybeans according to some producers. The presence of thrips and cutworms have been reported, but are fairly low in number. Producers now hope for more dry weather to firm wet fields, as the excessive moisture has postponed weed treatment for the most part. According to the National Agricultural Statistics Service, planting advanced to 88 percent in Louisiana and 79 in Mississippi.
Spot cotton trading was slow. Supplies were light. Producer offerings were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.
Heat units accumulated and stands advanced in the Rio Grande Valley. Occasional rain showers halted fieldwork. Young plants showed strong crop vigor and were squaring and fruiting. Producers monitored for fleahopper and aphid populations. Eastern Texas continued to receive heavy rainfall that flooded fields and cities. Some cotton fields were standing in water, as nearby rivers and creeks overflowed banks. Severe weather continued throughout the week and brought as much as seven and one-half inches of rainfall to the region. Weeds and thrips were uncontrollable, and went untreated since fields were too soggy to support equipment for applications. Aerial applications were underway whenever weather permitted. A period of dry weather was needed. Kansas and western Oklahoma received more rainfall that interfered with field activities. Lake Altus-Lugert, which is the source for irrigated fields in southwestern Oklahoma, continued to rise and was around 75 percent of capacity according to industry reports. No allotment information is available, but will be determined at a later date. Reports indicated that no planting occurred in Oklahoma. In Kansas, some fields firmed enough to sow seed on May 27, but planting activity was limited. Insurance planting deadlines are set for May 31. Producers remained hopeful that a window of dry and sunny conditions would materialize, allowing planting to continue.
Spot cotton trading was slow. Supplies were moderate. Producer offerings were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was slow. Foreign mill inquiries were light.
Some fields were too wet to plant. Other fields dried enough to plant early in the reporting period, before intermittent mid-week storms brought more rainfall to the region. Planting was active on May 26 and 27. A severe thunderstorm northwest of Lubbock on the evening of May 27 brought three to eight inches of rainfall and hail, which furthered delayed planting efforts. Producers were busy sowing seed ahead of the final insurance planting deadlines on May 31 in the Northern High Plains. Weed and pest management was underway. Rains were received in eastern New Mexico and helped improve drought conditions, but slowed planting activities. Chaves, Curry, Lea, Quay, and Roosevelt counties in New Mexico are approaching the insurance planting deadlines for irrigated fields on May 31, according to the maps from the Risk Management Agency.
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were higher. No domestic mill activity was reported.
Southeastern Arizona saw some drought improvement with recent rainfall. Almost an inch of moisture was received in central Arizona on May 22. Temperature highs were in the mid-90s, and lows were in the mid-70s. The crop reached peak bloom in Yuma, Arizona. Insect pressure was light and easily manageable. Fields in New Mexico and in El Paso, Texas made good progress under sunny conditions. Producers awaited the release of irrigation water in New Mexico.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were lower. No forward contracting or domestic mill activity was reported.
On May 22, the California Water Resources Board accepted a proposal that some farmers, with senior water rights to the Sacramento and San Joaquin rivers, have volunteered to reduce their water usage by 25 percent. This will be accomplished by fallowing additional farmland, reducing herds, and/or cutting back on irrigation. The governor of California declared a mandatory 25 percent reduction of water usage for all residential consumers and businesses on April 1. Some fields remained fallowed from the 2014 planting/growing season, when irrigation water allotments were reduced by the state.
American Pima (AP)
Spot cotton trading was inactive. Supplies and demand were moderate. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate.
The crop reached peak blooming stage in Yuma, Arizona. Little-to-no insect pressure was reported. Fields in New Mexico and in El Paso, Texas made good progress under sunny conditions. Producers anticipated the release of irrigation water in New Mexico.
Domestic mill buyers inquired for a moderate volume of 2014 and 2015-crop cotton, color 41, leaf 4 and 5, and staple 34 and longer for October 2015 through September 2016 delivery. No sales were reported. Most mills have covered their immediate-to-nearby raw cotton needs. Demand for open-end and ring-spun yarn was moderate to good. Most mills operated five to seven days. Inquiries through export channels were moderate. Demand was best throughout the Far East for any discounted or low-grade styles of cotton.
Regional Price Information
A moderate volume of color 31 and 41, leaf 3 and 4, staple 36-38, mike 35-49, strength 28-31, and uniformity 80-83 sold for around 65.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
A moderate volume of color 21-41, leaf 1-4, staple 32-34, mike 50 and higher, strength 25-28, and uniformity 79-81 sold for around 56.00 cents, same terms as above.
A light volume of color 32 and 42, leaf 2-4, staple mostly 32 and 33, mike 50 and higher, strength 26-29, and uniformity 78-80 sold for around 54.00 cents, same terms as above.
South Central Markets
No trading activity was reported.
A moderate volume of color 31 and 41, leaf 2-4, staple 33 and 34, mike 50 and higher, strength 27-30, and uniformity 80-82 sold for around 55.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
A light volume of color 31 and 41, leaf 2-4, staple mostly 33, mike 35-49, strength 25-28, and uniformity 78-80 sold for around 57.50 cents, same terms as above.
In Texas, mixed lots containing a light volume of mostly color 32 and 42, leaf 4, staple 36 and longer, mike 35-46, strength 29-33, and uniformity 79-83 sold for around 60.50 cents per pound, FOB warehouse (compression charges not paid).
A moderate volume of mostly color 21 and 31, leaf 3 and better, mostly staple 32 and 33, mike 40-52, strength 24-30, and uniformity 76-80 sold for around 53.50 cents, FOB car/truck (compression charges not paid).
In Kansas, Oklahoma and Texas, mixed lots containing a light volume of color 43 and better, leaf 8 and better, staple 35 and longer, mike 25-47, strength 24-33, uniformity 75-83, and 75 percent extraneous matter sold for around 42.00 cents, same terms as above.
Mixed lots containing a heavy volume of color 44 and better, leaf 6 and better, staple 36 and longer, mike 30-53, strength 26-32, uniformity 78-81, and 100 percent extraneous matter sold for around 51.00 cents per pound, FOB car/truck (compression charges not paid).
A light volume of mostly color 33, leaf 3 and better, staple 34 and longer, mike 27-46, strength 27-31, uniformity 77-80, and 25 percent extraneous matter sold for around 48.00 cents, same terms as above.
Mixed lots containing a light volume of color 43 and better, leaf 8 and better, staple 37 and longer, mike averaging 36.6, strength averaging 29.5, uniformity averaging 79.9, and 75 percent extraneous matter sold for around 42.00 cents, same terms as above.
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
No trading activity was reported.