USDA – Weekly Cotton Market Review : June 12, 2015

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Spot cotton quotations were virtually unchanged from 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 62.55 cents per pound for the week ended Thursday, June 11, 2015. The weekly average was up from 62.52 cents last week, but lower than the 78.91 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 63.10 cents on Wednesday, June 10, to a low of 61.70 cents on Thursday, June 11. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 11, totaled 4,902 bales. This compares to 8,354 bales reported last week and 4,734 bales reported a year ago. Total spot transactions for the season were 2,077,662 bales, compared to 1,301,752 bales the corresponding week a year ago. The ICE July settlement prices ended the week at 63.53 cents, compared to 65.12 cents last week.

Prices are in effect from June 12 – June 18, 2015 
    
Adjustment World Price (AWP)           51.23     ELS Competitiveness Payment  0.00 
Loan Deficiency Payment (LDP)    0.77            Fine Count Adjustment  2014 Crop  0.21 
Coarse Count Adjustment (CCA)    0.00            Fine Count Adjustment 2015 Crop  0.16 
Source:  Farm Service Agency, FSA, USDA

USDA ANNOUNCES SPECIAL IMPORT QUOTA #18 FOR UPLAND COTTON June 11, 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 June 18, 2015, allowing importation of 14,667,427 kilograms (67,367 bales) of upland cotton. Quota number 18 will be established as of June 18, 2015, and will apply to upland cotton purchased not later than September 15, 2015, and entered into the U.S. not later than December 14, 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 steady. Trading of CCC-loan equities was inactive. Partly cloudy conditions were observed across the region, with daytime high temperatures in the upper 80s to lower 90s. Scattered thundershowers brought localized rainfall to areas from the gulf coast to the upper southeast. Precipitation totals measured from one-quarter to one-half of an inch and the beneficial rainfall was welcomed in most areas. Planting activity neared completion across the region. Hot and sunny conditions invigorated emerging seedlings and good stands were reported in most areas. Producers applied herbicides in fields that had received excessive moisture. In areas of North Carolina, local experts reported a greater prevalence of glyphosate-resistant Palmer amaranth (pigweed) this growing season, and crews were hand pulling escapes that had emerged. Fields were scouted and sprayed for thrips in some areas.

South Central Markets

North Delta

Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Partly cloudy skies and scattered thunderstorms prevailed during the week. Up to one inch of rain was received throughout the region, with heavier amounts in isolated areas. Daytime temperatures were in the low to mid-90s. Overnight lows were in the upper 60s to low 70s. The crop benefitted from the warmer temperatures and generally made good progress. Local experts reported that plant development varied greatly due to the cool and wet conditions that dominated the weather pattern earlier this spring. Producers reported slow growth due to the presence of root diseases in fields, which remained wet for extended periods. Producers were also re-applying herbicides and fertilizers due to leaching and denitrification effects from excessive rain. Fields were also being cultivated wherever practical to control weed infestations. Insect pressure from thrips was light, although some fields were treated as necessary. According to the National Agricultural Statistics Service Crop Progress report released June 8, cotton squaring had reached 2 percent in Arkansas and 3 percent in Tennessee. No squaring was reported in Missouri.

South Delta

Spot cotton trading was inactive. Supplies and producer offerings were very light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported.

Partly cloudy skies with occasional thunderstorms dominated the weather pattern during the week. Up to one inch of rain was received throughout the region, with heavier amounts in isolated areas. Daytime temperatures were in the low to mid-90s. Overnight lows were in the upper 60s to low 70s. The crop benefitted from the warmer temperatures and generally made good progress. Local experts reported that plant growth varied greatly due to the cool and wet soil conditions this spring. Producers reported slow development due to the presence of root diseases in fields, which remained wet for extended periods; many flooded fields had to be replanted. Producers were battling weed outbreaks by re-applying herbicides and cultivating wherever practical. Fertilizers were being applied due to leaching and denitrification effects from excessive rain. Insect pressure from thrips and plant bugs was light, although some fields were treated as necessary to control infestations. According to the National Agricultural Statistics Service Crop Progress report released June 8, cotton squaring had reached 21 percent in Louisiana and 1 percent in Mississippi.

Southwestern Markets

East Texas-Oklahoma

Spot cotton trading was slow. Supplies were light. Producer offerings were light. Demand was light. Average local spot prices were firm. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.

Experts estimated the crop to be about two weeks late. Progress was reported at first true leaves to first bloom in the Blackland Prairies and in the Brazos River Bottom. Treatments for weed control were applied in eastern and southern Texas. Some fields were sprayed to control fleahoppers. Thrips were monitored and expected to increase as they migrate away from harvested wheat fields. Some cotton fields that were more mature received plant growth regulators. Reports indicated that most producers would manage for a shorter growing season, which includes controlling plant growth to optimize yields. In Kansas and Oklahoma, planting was active and some fields had begun to emerge. Producers applied herbicide to control weeds.

West Texas

Spot cotton trading was slow. Supplies were moderate. Producer offerings were light. Demand was light. Average local spot prices were firm. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.

Stands flourished under warm conditions with occasional intermittent summer showers. Crop progress was reported at emerged cotyledons to five true leaves. Some replanting occurred. Seed was sown in the Southern Rolling Plains ahead of the June 20 insurance planting deadline for dryland cotton. Producer reports from organic operations indicated that planting was completed during the weekend, well ahead of the planting deadline. Insect pressures were minimal, but weeds continued to prove problematic. Some application chemistries were changed to increase control measures of weeds, including tumbleweed and kochia.

Western Markets

Desert Southwest (DSW)

Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were steady. No domestic mill activity was reported.

Thunderstorms produced nearly one-quarter of an inch of moisture in Phoenix and about one-third of an inch in Casa Grande, Arizona early in the reporting period. Remnants from Hurricane Blanca brought cloudy conditions, lightning, and showers into Arizona on Tuesday, June 9. Precipitation accumulations were around one-quarter of an inch. Triple-digit temperatures gave way to the high 90s as showers passed through the area.

The crop continued to make good progress throughout the state. Squaring was prevalent in central Arizona. Insect pressure was light and easily controlled. Temperatures were in the high 80s to mid-90s for New Mexico and El Paso, Texas. Approximately one-half to three-quarters of an inch of beneficial rainfall was received in Artesia, New Mexico early in the reporting period. The crop made good progress. Water flowed in irrigation ditches.

San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were steady. No forward contracting or domestic mill activity was reported.

Remnants from Hurricane Blanca brought cloudy and windy conditions mid-week. No measurable moisture was received. The crop made good progress.

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.

A total of 301,500 bales were committed to export sales for week ending June 4, according to the Foreign Agricultural Service. New-crop cotton commitments to export sales were at 1,600 bales, compared to 17,900 bales last year at this time. Temperatures were in the high 90s to low 100s for Arizona and California. Parts of eastern Arizona received around one-third of an inch of rainfall. Temperatures in New Mexico and El Paso, Texas were in the high 80s to mid-90s. Overall, the crop made good progress in Arizona, California, New Mexico, and Texas.

Textile Mill

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 delivery fourth quarter 2015 through third quarter 2016. No sales were reported. Most mills have covered their immediate-to-nearby raw cotton needs. Open-end and ring-spun demand was moderate to good. Most mills operated five to seven days. Regional Price Information Southeastern Markets

Mixed lots containing color mostly 41, 32 and 42, leaf 3-5, staple 34 and longer, mike 43-52, strength 28-31, uniformity 80-83, and containing approximately 50 percent extraneous matter sold for around 63.50 cents per pound, FOB car/truck (Rule 5, compression charges paid). .. A light volume even-running lot containing color 41, leaf 3, staple 36, mike 43-49, strength 27-29, and uniformity 80-81 sold for around 61.00 cents, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).

South Central Markets

North Delta

No trading activity was reported.

South Delta

No trading activity was reported.

Southwestern Markets

East Texas

In Texas, a light volume of color 42 and better, leaf 3 and 4, staple 33 and longer, mike 40-48, strength 30-31, and uniformity 80-81 sold for around 47.50 cents per pound, FOB warehouse (compression charges not paid).

In Oklahoma, a light volume of color 11 and 21, leaf 3 and better, staple 35 and longer, mike 35-49, strength 27-34, and uniformity 78-83 sold for around 67.25 cents, FOB car/truck (compression charges not paid).

A light volume of color 31 and 41, leaf 4 and better, staple 34 and longer, mike 42-46, strength 30-32, and uniformity 75-81 sold for around 61.50 cents, same terms as above.

West Texas

A moderate volume of color 12 and 22, leaf 3 and 4, staple 36 and longer, mike 35-47, strength 27-33, and uniformity 79-83 sold for around 64.50 cents per pound, FOB car/truck (compression charges not paid).

Mixed lots containing a light volume of mostly color 31 and 41, mostly leaf 3, staple 32 and longer, mike 42-46, strength 24-31, uniformity 75-81, and 25 percent extraneous matter sold for around 53.00 cents, same terms as above.

Mixed lots containing a light volume of color 34 and better, mostly leaf 4 and 5, staple 36 and longer, mike averaging 31.1, strength averaging 30.8, uniformity averaging 80.9, and 100 percent extraneous matter sold for around 44.75 cents, same terms as above.

Western Markets

Desert Southwest

No trading activity was reported.

San Joaquin Valley

No trading activity was reported.

American Pima

No trading activity was reported.

Source: USDA

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