Weekly Cotton Market Review, narrative
Mp_cn812 
January 12,  2018 
Weekly Cotton Market Review  
 


Average quotations were 88 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 35-36 and 43-49, strength 
27.0-28.9, uniformity 81.0-81.9) in the seven designated markets 
averaged 76.84 cents per pound for the week ending Thursday, 
January 11, 2018. The weekly average was up from 75.96 last week 
and from 71.46 cents reported the corresponding period a year ago. 
Daily average quotations ranged from a low of 75.61 cents Friday, 
January 5 to a seasonal high of 79.96 cents Thursday, January 11. 
Spot transactions reported in the Daily Spot Cotton Quotations for 
the week ended January 11 totaled 148,565 bales. This compares to 
75,044 bales reported last week and 89,020 spot transactions reported 
the corresponding week a year ago. Total spot transactions for the 
season were 1,067,016 bales compared to 873,030 bales the 
corresponding week a year ago.  The ICE March settlement prices 
ended the week at 82.65 cents, compared to 79.25 cents last week. 


Southeastern Markets Regional Summary 


Spot cotton trading was moderate.  Supplies and producer offerings 
were moderate.  Demand was moderate. Average local spot prices were 
higher. Trading of CCC-loan equities was inactive.  Producers took 
advantage of higher ICE futures during the period to book a light 
volume of 2018-crop cotton. 
     
Cold and mostly cloudy conditions prevailed over the lower Southeast 
early in the period with daytime highs in the mid-40s to low 50s.  
Up to 1 inch of scattered precipitation was received in areas throughout 
Alabama and portions of west Georgia early week. Overcast conditions 
were observed later in the week as a mass of warm and moist air settled 
over the region and daytime highs warmed into the upper 60s. Fieldwork 
was interrupted by the wet weather throughout the period.  Producers 
welcomed the precipitation, which should help improve soil moisture 
levels.  Abnormally dry to moderate drought conditions existed throughout 
Alabama and Georgia, according to the U.S. Drought Monitor.  Clear and 
cold conditions were observed in the Carolinas and Virginia over the 
weekend with frigid daytime highs in the low-to-mid 30s.  Warmer weather 
conditions were observed later in the week with daytime highs in the 
upper 60s to low 70s and light scattered rainfall was observed in some 
locales.  Fieldwork was completed where soils were firm enough to support 
equipment.  Gins continued to process backlogs of modules throughout the region. 
 
Textile Mill 
Domestic mill buyers purchased a moderate volume of color 41, leaf 5, 
and staple 35 and longer for  April/May delivery.  Mill buyers also 
inquired for a heavy volume of 2017 and 2018-crop cotton, color 41, 
leaf 4, and staple 34 and longer for third and fourth quarter 2018 
delivery.  No sales were reported.  Most mills operated five to seven days.  
     
Demand through export channels was moderate.  Agents for mills in 
Turkey purchased a moderate volume of color 31, 41 
and 51, leaf 3-5, and staple 37 and longer for March/April shipment.  
Agents throughout the Far East inquired for any discounted styles of low mike cotton.       

Trading 
..
A light volume of color 21 and 31, leaf 2 and 3, staple 36-38, mike 
43-49, strength 28-31, and uniformity  81-83 sold for 475 to 525 
points on ICE March futures, FOB car/truck, Georgia terms (Rule 5, 
compression charges paid, 30 days free storage). 
..
Mixed lots containing color 21, 31 and 41, leaf 2 and 3, staple 35-37, 
mike mostly 43-49, strength 29-32, and uniformity 81-83 sold for 
around 375 points on ICE March futures, same terms as above. 
..
A moderate volume of color mostly 31 and 41, leaf 2-4, staple 33 and 
longer, mike 37-49, strength 27-30, and uniformity 80-82 sold for 
around 275 points on ICE March futures, same terms as above. 
..
A moderate volume of color 31 and 41, leaf 2 and 3, staple 34, mike 
43-52, strength 25-27, and uniformity 80-82 sold for around 50 to 
75 points on ICE March futures, same terms as above. 


South  Central Markets Regional Summary
 

North Delta
 
Spot cotton trading was steady.  Supplies of available cotton were 
light.  Demand was light.  Average local spot prices were higher.  
Trading of CCC-loan equities was inactive. No forward contracting 
was reported. Cotton was being delivered to fulfill contracts. 

A flow of warm, moist air brought overcast skies and sporadic rain 
showers to the region during the week. Daytime temperatures were in 
the 50s and 60s.  Overnight lows were in the teens and 40s.  Less 
than 1 inch of precipitation accumulated in most areas.  Freezing 
temperatures were in the short-term forecast.  Ginning was winding 
down throughout the region.  The Dumas Classing Office had a single 
shift operating as necessary.  The Memphis Classing Office also 
continued operating one shift on a day-to-day basis, because a few 
gins in the Memphis territory continued to operate.  Outdoor activities 
were halted due to cold, wet conditions.  Producers made plans 
to attend regional and national industry meetings.  According to 
the U.S. Drought Monitor, moderate-to-severe drought conditions 
persisted in Arkansas and the Bootheel of Missouri; soil moisture 
conditions were adequate in the cotton-producing areas of Tennessee.   
 
South Delta 

Spot cotton trading was slow.  Supplies of available cotton were 
light.  Demand was light.  Average local spot prices were higher.  
Trading of CCC-loan equities was inactive. No forward contracting was 
reported. Cotton was being delivered to fulfill contracts. 

Climatic conditions were erratic.  Warm,  moisture-laden air entered 
the area during the period, which provided relief from the frigid 
weather the previous week.  Daytime temperatures were in the 50s and 60s.  
Overnight lows were in the teens and 40s.  Less than 1 inch of total 
precipitation was reported in most areas.  Another cold front was in 
the nearby forecast.  Several larger gins were still pressing cotton 
in Mississippi.  Outdoor activities were idle due to cold, wet conditions.  
Producers attended various industry meetings, including the Beltwide 
meetings in San Antonio, Texas.  According to the U.S. Drought Monitor, 
moderate-to-severe drought existed in northeastern Louisiana and most of Mississippi. 

Trading 
 
North Delta 
..
A moderate volume of color 51 and better, leaf mostly 5 and better, 
staple 35 and longer, mike 35-49, strength 28-35, and uniformity 79-84 
traded at around 225 points on March ICE futures, FOB car/truck (Rule 5, 
compression charges paid). 

South Delta 
..
A light volume of color 51 and better, leaf mostly 5 and better, staple 35 
and longer, mike 35-49, strength 28-35, and uniformity 79-84 traded at 
around 225 points on March ICE futures, FOB car/truck (Rule 5, compression 
charges paid). 


Southwestern Markets Regional Summary


East Texas
 
Spot cotton trading was active.  Supplies and producer offerings were 
moderate.  Demand was moderate.  Average local spot prices were higher.  
Producer interest in forward contracting was moderate.  Trading of 
CCC-loan equities was active.  Foreign inquiries were moderate.  
Interest was best from India, Taiwan, and Turkey. 
     
The Corpus Christi Classing Office has provided classification services 
on more than 2.2 million samples for producers in the Rio Grande Valley, 
south Texas, and in the Blackland Prairies.  About 10 gins continued 
pressing services in the northern Blackland Prairies, the Winter Garden 
area, and in south Texas.  Producers in south Texas were busy preparing 
the soil and controlling weeds ahead of the planting season.  Fertilizers 
were applied.  In Kansas, harvesting neared 80 percent completed.  Ginning 
is expected to continue into March. In Oklahoma, harvesting was 90 percent 
completed, according to local sources.  A lack of available harvesters to 
service the exceptionally large crop was cited as the reason that not all 
fields had been picked.  Modules were transported to the gin yards.   
 
West Texas
 
Spot cotton trading was active.  Supplies and producer offerings were heavy.  
Demand was very good.  Average local spot prices were higher.  Producer 
interest in forward contracting was light.  Trading of CCC-loan equities 
was light.  Foreign inquiries were moderate.  Interest was best from India, 
Taiwan, and Turkey. 
     
Temperatures varied from the mid-40s to the low 80s across the region as 
dry conditions prevailed.  According to the local newscast on January 10, 
Lubbock had not received significant rainfall in 63 days.  A cold front 
brought less than two-tenths of an inch of wintry precipitation late in the period 
to a localized area around the New Mexico border.  Winds were gusting more 
than 50 miles per hour and wind turbines were shut down.  Fieldwork was 
interrupted.  Harvesting was mostly completed, but some fields  remained 
unpicked due to harvesting equipment not being available.  Modules were 
transported from the fields to the gin yards.  A few gins finished for the 
season in the High Plains.  The exceptionally large crop in the panhandle 
challenged ginning capacity and the gins were less than 50 percent completed.     
The Lubbock Classing Office graded more than 2.8 million samples and the Lamesa 
Classing Office graded more than 1.3 million samples.  The Abilene Classing 
Office has graded more than half a million samples for producers in west Texas.         

Trading 
 
East Texas 
..
In Texas, a moderate volume of mostly color 42 and better, leaf mostly 3-5, 
staple 35 and longer, mike 34-52, strength 28-35, and uniformity 79-83 sold 
for around 72.00 cents per pound, FOB warehouse (compression charges not paid).   
..
In Kansas, a light volume of color 21 and 31, leaf 3 and 4, staple 36 and 37, 
mike averaging 37.2, strength 27-29, and uniformity 80-81 sold for around 72.00 
cents same terms as above.  
.. 
A light volume of mostly color 31, leaf 4-6, staple 36 and 37, mike 31-36, 
strength 27-29, and uniformity 78-80 sold for around 63.50 cents, same terms as above.  
..
In Oklahoma, a moderate volume of mostly color 21 and better, leaf 3 and better, 
staple 37 and longer, mike 33-41, strength 27-32, and uniformity 79-83 sold for 
around 77.75 cents, FOB car/truck (compression charges not paid).    
..
A light volume of mostly color 21, leaf 2 and 3, staple 36 and longer, mike averaging 44.0, 
strength averaging 32.7, and uniformity averaging 81.6 sold for around 75.75 cents, same terms as above.  
..
A heavy volume of CCC-loan equities traded for around 19.50 to 22.50 cents. 
 
West Texas 
..
A heavy volume of color 31 and better, leaf 3 and better, staple 36 and longer, 
mike 35-46, strength 27-33,  and uniformity 78-81 sold for around 78.00 cents per 
pound, FOB car/truck (compression charges not paid). 
..
A moderate volume of color 31 and better, leaf 3 and better, staple 37 and 38, 
mike 33-42, strength 27-29, and uniformity 79-80 sold for around 76.50 cents, same terms as above. 
..
A moderate volume of color 21 and 31, leaf 2 and 3, staple 36, mike 31-35, strength 29-31, 
and uniformity 79-80 sold for around 69.00 cents, same terms as above. 
..
A light volume of CCC-loan equities traded for around 14.25 to 17.75 cents. 


Western Markets Regional Summary 


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies were  light.  Demand was moderate.   
Producers delivered 2017-crop cotton to the co-op, merchant marketing pools, or 
into the CCC-loan program.   Producers inquired for 2018-crop contracts.  A light 
volume of new-crop contracting was reported.  Average local prices were higher.   
     
According to published sources, the 102 day dry-streak was broken on Tuesday night, 
January 9 when measureable rainfall was received in Phoenix, Arizona.   Southwestern 
and central Arizona received approximately one-quarter to one-half inches of 
precipitation.  Higher elevations received generous snowfall amounts.  A few 
modules remained in fields, but most were on the gin yards.  Harvesting was 
virtually completed.  Precipitation accumulations were light in New Mexico and 
El Paso, Texas.  Ginning continued uninterrupted in the DSW.  Producers considered 
spring planting options.  
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies were  light.  Demand was moderate.  
Producers delivered 2017-crop cotton to the co-op, merchant marketing pools, 
or into the CCC-loan program.  Average local spot prices were higher.  No forward 
contracting or domestic mill activity was reported.  Foreign mill inquiries were moderate.   
     
The high pressure system, which kept California dry for the past few weeks, lifted 
and rainfall was welcomed into the Valley mid-week.  The Valley received around 
three-quarters of an inch to one and three-quarter inches of rain.  Snowfall was 
received in elevations above 8,000 feet in the Sierra Nevada Mountains.  This is a 
great start to the New Year, as December was extremely dry.  California receives 
about half of its annual precipitation during December, January, and February.  
Early morning fog was present late in the period.  Ginning continued.  Producers 
considered spring planting options.  Fields were prepped for planting.   
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies and producer offerings were light.  
Demand was moderate.    Average local spot prices were steady.  No forward contracting 
or domestic mill activity was reported.  Producers inquired for 2018-crop contracts.  
Foreign mill inquiries were steady.   Interest was best from China.   According to the 
Foreign Agricultural Service Export Sales report, approximately 480,800 bales of 
2017-crop AP was committed for the week ending January 4, 2018.  Sale commitments of      
2018-crop cotton remained unchanged for several weeks at 35,400 bales compared to 
no bales committed at this same time last year.   
     
Welcomed precipitation and snow was received throughout the Far West region.  
Rainfall amounts varied with central Arizona receiving around one-quarter to one-half 
inches and the San Joaquin Valley of California received three-quarters to one and 
three-quarter inches.  Trace amounts up to one-tenth of an inch was reported in New Mexico and El Paso, Texas.    

Trading 
 
Desert Southwest 
..
No trading activity was reported. 

San Joaquin Valley 
..
No trading activity was reported. 
 
American Pima 
..
Agents for mills in China purchased a moderate volume of color 2, leaf 2 and better, 
and staple 48 and  longer for January/February shipment.