Weekly Cotton Market Review

Transcription

1 Mp_cn812 Weekly Cotton Market Review Cotton and Tobacco Program Cotton Market News Division 3275 Appling Road Memphis, TN Vol. 100 No. 30 March 1, 2019 Inside this Issue Market Overview Price Support Spot quotations averaged 12 points higher 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 35-3 and 43-49, strength , and uniformity ) in the seven designated markets averaged 7.00 cents per pound for the week ending Thursday, February 28, The weekly average was up from.88 last week but down from 78.0 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 7.42 cents Monday, February 25 to a low of.34 cents Tuesday, February 2. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended February 28 totaled,537 bales. This compares to 2,571 reported last week and 74,941 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 7,101 bales compared to 1,553,448 bales the corresponding week a year ago. The ICE May settlement prices ended the week at cents, compared to cents last week. Spot Quotation ICE Futures A Index Southeastern Textile Mill Report South Central Southwestern Western Pima Quotations Cotton Market Reports Subscribe to this report Subscribe to all Cotton Market reports Sources: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook

2 Southeastern Markets Regional Summary Danny Pino Macon, GA Spot cotton trading was inactive. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were steady. Trading of CCC-loan equities was inactive. A severe storm moved across north central Alabama over the weekend and brought heavy rainfall, flash flooding, and tornado watches. Portions of northwest Alabama received in excess of 4 to 8 inches of heavy rainfall. Rising streams prompted evacuations and road closures in low-lying areas. Light to moderate precipitation was received in areas throughout south Alabama, the Florida panhandle, and south Georgia throughout the week. Intermittent overcast to sunny conditions prevailed across the lower Southeast region with daytime high temperatures in the mid-40s to low 0s. Fieldwork and harvesting of the last remaining fields resumed in areas where dry conditions prevailed and soils were firm enough to support equipment. Most gins had finished operations for the season; some remained on gin days as they waited for modules to accumulate on gin yards. Producers considered planting options for the 2019-crop season. Widespread storms brought heavy rainfall to portions of Virginia and much of North Carolina over the weekend. Precipitation totals measured from 1 to 2 inches. A window of sunny weather early in the week was followed by additional wet weather which returned to the region late week. Daytime high temperatures varied from the low 40s to low 70s. No fieldwork was reported. Most gins had completed pressing operations for the season. Producers considered planting options for the 2019-crop season. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and 35 for second and third quarter delivery. Mill buyers also inquired for a moderate volume of color 42, leaf 4, and staple 34 and 35 for June through September delivery. No sales were reported. Most mills operated five to seven days. Yarn demand was moderate. Demand through export channels was moderate. No sales were reported. No trading activity was reported. Trading 2

3 South Central Markets Regional Summary Jeff Carnahan Memphis, TN North Delta Spot cotton trading was inactive. Supplies of available cotton were moderate. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported; producers continued to monitor commodity markets and international trade developments as they looked forward to the 2019-crop season. A major storm system brought heavy rains, strong winds, and thunderstorms to most of the region. Up to 4 inches of accumulated moisture was reported. Flash flood and river flood warnings were in effect. Daytime temperatures were in the 50s and 0s. Overnight lows were in the upper 30s. Temperatures were near historical averages. No fieldwork was reported. Producers and other interested persons made plans to attend industry-related workshops and meetings, including the Mid-South Farm and Gin Show scheduled for March 1-2 in Memphis, TN. South Delta Spot cotton trading was inactive. Supplies of available cotton were moderate. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported; producers continued to monitor commodity markets and international trade developments as they prepared for the 2019-crop season. Clear to partly cloudy skies with some rain showers characterized the weather pattern during the week. Less than 1 inch of accumulated moisture was reported in most areas, with somewhat higher amounts in localized places. Flash flood and river flood warnings remained in effect. Daytime temperatures were in the 0s and 70s. Overnight lows were in the 40s. No fieldwork was reported; fieldwork remained behind schedule compared to previous years, due to saturated soils from persistent rainfall. Producers required an extended period of warm, dry weather in order to prepare fields for timely spring planting; otherwise, corn acreage could be replaced with alternative crops. Producers and other interested persons made plans to attend industry-related workshops and meetings, including the Mid-South Farm and Gin Show scheduled for March 1-2 in Memphis, TN. No trading activity was reported. No trading activity was reported. Trading North Delta South Delta 3

4 Southwestern Markets Regional Summary Jane Byers-Angle Lubbock, TX East Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Producers continued to deliver previously contracted cotton to merchant and cooperative marketing pools. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. Watering fields was underway in the Rio Grande Valley, but the ground temperatures have been too cold to encourage planting activities. Ginning continued in Zavala County. Wintry conditions prevailed in central Texas, which interfered with corn planting. Soggy conditions could push some acres to cotton planting. Reports indicated that the remaining unharvested cotton fields were turned over to insurance. Frigid daytime high temperatures were in the low 20s to low 0s in Kansas. Overnight low temperatures were in the single digits to low 20s. Frequent light snow was received most days during the cold front. Ginning continued with some shutdowns, due to windy conditions. Harvesting was finished. Module transportation from the fields has been a struggle, due to soft soils. Planting seed was booked. Ginning continued in Oklahoma, but a few gins finished the season. The Abilene Classing Office closed the 2 nd shift to pace with incoming sample receipts. West Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Producers continued to deliver previously contracted cotton to merchant and cooperative marketing pools. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. Fieldwork was active with daytime high temperatures in the mid-40s to mid-70s, and overnight lows in the low 20s to upper 30s. Fertilizer and herbicides were applied. Many fields underwent deep tillage with reports of good subsoil moisture in most areas. However, some reports indicated that the subsoil was dry and powdery. Much of the area has not received significant precipitation since the snow in December, and a good rain would be beneficial. A few more gins have finished. County cotton conferences were held and attended by industry members. Trading East Texas In Texas, a light volume of mostly color 51, leaf 3 and 4, staple 33-35, mike 44-49, strength averaging 28.0, and uniformity averaging 78.3 sold for around cents per pound, FOB warehouse (compression charges not paid). In Oklahoma, a heavy volume of mostly color 31 and better, leaf 4 and better, staple 37 and longer, mike 28-43, strength 28-34, and uniformity sold for around cents, FOB car/truck (compression charges not paid). A heavy volume of mostly color 21 and 31, leaf 2-4, staple 38 and longer, mike 30-41, strength 27-35, and uniformity sold for around 7.00 cents, same terms as above. A light volume of CCC-loan equities traded for around 9.50 cents. West Texas A moderate volume of mostly color 41 and better, leaf 2, 3, and 4, staple 3 and 37, mike 32-43, strength 30-34, and uniformity sold for around 8.00 cents per pound, FOB car/truck (compression charges not paid). A moderate volume of mostly color 21 and 31, leaf 4 and better, staple 34 and longer, mike 34-51, strength 29-22, and uniformity sold for around.50 cents, same terms as above. A moderate volume of mostly color 31 and 41, leaf 3 and 4, staple 34 and longer, mike 37-51, strength 25-32, uniformity 7-82, and 25 percent extraneous matter sold for around 5.25 cents, same terms as above. 4

5 Maria Townsend Western Markets Regional Summary Visalia, CA Desert Southwest (DSW) Spot cotton trading was active. Supplies and demand were moderate. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The on-going trade/tariff dispute between the US and China continues to slow inquiries and sales. Temperatures for Arizona were in the mid-50s early in the period. Rainfall accumulations were around 1 inch. In higher elevations, Flagstaff recorded a record-breaking snowfall total. This will be helpful in providing water to reservoirs. Cool temperatures and rain once again delayed planting in Yuma, AZ. Ginning continued in Arizona. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Daytime high temperatures were in the 0s. Scattered showers brought around one-quarter of an inch. The storms augmented the snowpack in the Sierra Nevada Mountains. The statewide snowpack averaged 125 percent of the April average for this time of year. Fieldwork was limited. American Pima (AP) Spot cotton trading was slow. Supplies were moderate. Demand was light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Interest was best from Columbia and Mexico. The on-going trade/tariff dispute between the US and China continues to slow inquiries and sales. Local merchants noted carryover supplies were higher, due to increased production which signaled to mills no rush to buy. Overall, merchants were discouraged by lack of mill interest. Daytime high temperatures were in the 50s to 0s in the Far West. Precipitation amounts ranged from one-quarter of an inch to one inch for the region. Fresh snowfall boosted the snowpack for the Sierra Nevada Mountain range of California and in higher elevations of Arizona. Trading Desert Southwest A heavy volume mixed lot of mostly color 31 and better, leaf 3 and better, staple 3-42, mike 35-49, strength 29-33, and uniformity and higher sold for around even on May futures, uncompressed, FOB warehouse. A moderate volume of mostly color 31 and 41, leaf 3 and 4, staple 3 and longer, mike averaging 49., strength averaging 37.0, and uniformity averaging 81.5 sold for around 375 points off ICE May futures, same terms as above. San Joaquin Valley No trading activity was reported. American Pima A moderate volume of color 2, leaf 2, and staple 4 and better was sold for prompt shipment. 5

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7 World market prices for upland cotton, in cents per pound, in effect from 12:01 a.m., EDT, Friday through midnight, EDT, Thursday Jan Feb Feb Feb Feb Mar 1-7 Adjusted world price 1/ Course count adjustment Loan Deficiency Payment (LDP) Fine count adjustment Fine count adjustment / Color 41, leaf 4, staple 34, mike 35-3 & 43-49, strength readings of grams per tex, length uniformity of percent. Source: Farm Service Agency, USDA. Description Outstanding sales Exports Total export commitments Marketing Years Week Mkt. Year Week - 7,442, ,700 5,715, ,700 13,157,500 - New sales 313, ,500 - Buy-backs and cancellations 19,00-114,000 - Net sales 294,100-85,500 - Sales next marketing year 118,200 2,118,100 12, Through February 22, 2018 Through February 21, 2019 Mkt. Year,591,400 5,350,000 11,941,400 2,287,000 Net sales of 85,500 RB for 2018/2019 were reported for Indonesia (29,00 RB, including 500 RB switched from Japan), Vietnam (27,800 RB, including 1,700 RB switched from China, 1,100 RB switched from South Korea, and decreases of 24,000 RB), Turkey (27,400 RB), Bangladesh (21,500 RB), and Pakistan (7,900 RB, including decreases of 5,000 RB). Reductions were reported for China (5,00 RB) and Malaysia (500 RB). For 2019/2020, net sales of 12,100 RB reported for China (11,000 RB), Mexico (2,700 RB), and Indonesia (900 RB), were partially offset by reductions for Indonesia (2,00 RB). Exports of 345,700 RB were primarily to Vietnam (92,00 RB), Pakistan (70,100 RB), India (3,200 RB), Indonesia (23,500 RB), and Bangladesh (23,400 RB). Net sales of Pima totaling 9,300 RB for 2018/2019 were reported for Vietnam (4,400 RB), India (2,000 RB), Pakistan (1,300 RB), and China (1,200 RB, including decreases of 200 RB). Exports of 15,800 RB were primarily to China (5,500 RB), Pakistan (3,100 RB), Vietnam (3,000 RB), India (1,300 RB), and Peru (1,200 RB). Optional Origin Sales: For 2018/2019, the current outstanding balance of 900 RB is for Vietnam. Exports for Own Account: For 2018/2019, the current exports for own account outstanding balance is 4,400 RB. The destinations are China (2,300 RB) and Vietnam (2,100 RB). Source: Export Sales Reporting Division, Foreign Agricultural Service, USDA. NOTE: Data may not add due to rounding. February 28, 2019 USDA ANNOUNCES SPECIAL IMPORT QUOTA #19 FOR UPLAND COTTON February 28, 2019 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 March 7, 2019, allowing importation of 12,19,815 kilograms (57,92 bales) of upland cotton. Quota number 19 will be established as of March 7, 2019, and will apply to upland cotton purchased not later than June 4, 2019, and entered into the U.S. not later than September 2, The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period October 2018 through December 2018, 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. 7

8 Number of Bales in Certificated Stocks Delivery Points Stocks as of Awaiting Review Non-Rain Grown Cotton Dallas/FT. Worth, TX 11, Galveston, TX 25, Greenville, SC Houston, TX 9, Memphis, TN 84, Total 131, Spot quotations are in cents per pound for cotton equal to the Official Standards, net weight, in mixed lots, compressed, FOB car/truck. SOUTHEAST NORTH DELTA SOUTH DELTA DESERT SOUTHWEST Staple EAST TEXAS-OKLAHOMA WEST TEXAS SAN JOAQUIN VALLEY Staple MIKE DIFFERENCES - POINTS PER POUND SOUTH- NORTH SOUTH E. TX WEST DESERT SJ EAST DELTA DELTA OK Mike Ranges TEXAS SW VALLEY AVG & Below Base Base & Above STRENGTH DIFFERENCES UNIFORMITY DIFFERENCES SOUTH- NORTH SOUTH E. TX Grams WEST DESERT SJ SOUTH- NORTH SOUTH E. TX Unit WEST DESERT SJ EAST DELTA DELTA OK per tex TEXAS SW VALLEY AVG. EAST DELTA DELTA OK TEXAS SW VALLEY AVG & below Diff Base Base & above & above February 28,

9 American Pima quotations are for cotton equal to the Official Standards, net weight, in mixed lots, UD Free, FOB warehouse. 1/ AMERICAN PIMA SPOT QUOTATIONS Color Leaf Staple The current Pima spot quotations represent prices from local sales, export sales, and offerings last reported on February 28, Type - Level Other - Level Plastic - Level 2 Diff Plastic - Level / Pima spot quotations for color-leaf-staple combinations not quoted will be included as sales of those qualities which are reported. Range 2 & Below & Below & Above Extraneous Matter Prep - Level Prep - Level 2 Mike Strength & Above 0 Range (Grams per Tex) Diff Diff Other - Level February 28,