Spot cotton quotations were 160 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 59.26 cents per pound for the week ended Thursday, May 12, 2016. The weekly average was down from 60.86 cents last week, and 63.60 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 59.77 cents Friday, May 6 to a low of 58.89 cents Wednesday, May 11. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 12 totaled 7,555 bales. This compares to 2,816 bales reported last week and 5,492 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,432,122 bales compared to 2,054,919 bales the corresponding week a year ago. The ICE July settlement prices ended the week at 60.73 cents, compared to 61.79 cents last week.
1. USDA ANNOUNCES SPECIAL IMPORT QUOTA #14 FOR UPLAND COTTON May 12, 2016
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 May 19, 2016, allowing importation of 14,130,218 kilograms (64,899 bales) of upland cotton. Quota number 14 will be established as of May 19, 2016, and will apply to upland cotton purchased not later than August 23, 2016, and entered into the U.S. not later than November 21, 2016. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period January 2016 through March 2016, 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.
Prices are in effect from May 13-May 19, 2016 Adjusted World Price (AWP) 50.19 ELS Competitiveness Payment 0.00 Loan Deficiency Payment (LDP) 1.81 Fine Count Adjustment 2014 Crop 0.00 Coarse Count Adjustment (CCA) 0.00 Fine Count Adjustment 2015 Crop 0.00 Source: Farm Service Agency, FSA, USDA