Mp_cn812 September 15, 2017 Weekly Cotton Market Review Average quotations were 268 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 69.95 cents per pound for the week ending Thursday, September 14, 2017. The weekly average was down from 72.63 last week, but up from 66.71 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 73.35 cents Friday, September 8 to a low of 67.84 cents Thursday, September 14. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 14 totaled 2,403 bales. This compares to 8,136 bales reported last week and 918 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 27,198 bales compared to 15,131 bales the corresponding week a year ago. The ICE October settlement prices ended the week at 69.78 cents, compared to 75.03 cents last week. Southeastern Markets Regional Summary Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Producers fixed prices on a light volume of previously booked 2017-crop cotton. Hurricane Irma made landfall in the Florida Keys early morning on Sunday, September 10 as a Category 4 storm with maximum sustained winds of 130 mph, according to the National Weather Service. After making its second continental landfall in south Florida, Irma slowly weakened and had decayed to a tropical storm by Monday morning, September 11 as it tracked north-north westward across north Florida and southwest Georgia. Despite weakening, Irma maintained a very large wind field and tropical storm force winds extended up to 400 miles from the center of the storm. Irma’s slow movement and sheer size made for hours of tropical storm force winds of around 40 to 60 mph; widespread tree, property, and power line damage was reported in Florida, Alabama, and Georgia, as well as widespread power outages. Rainfall totals generally measured 2 to 4 inches across the lower Southeast and areas of the coastal Carolinas. Heavier localized downpours in excess of 5 to 9 inches were recorded in eastern and coastal areas. Damage assessments to the crop were underway; strong winds twisted plants and blew around bolls, but initial reports indicated limited yield loss due to the fact that most bolls remained unopened and defoliation had not yet begun. In Georgia, initial reports indicated some producers anticipated around a 10 to 15 percent yield loss in their fields. A period of warm and sunny weather would be welcome to invigorate plants and bleach out any discolored lint in bolls. Defoliation should commence in the earliest-planted fields in Georgia and South Carolina once fields dry out. According to the National Agricultural Statistics Service’s Crop Progress report released September 11, cotton bolls opening had reached 51 percent in Georgia, 46 in South Carolina, 35 in North Carolina, and 32 percent opened in Alabama and Virginia. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 for mid-October fill-in needs. Mill buyers also inquired for a moderate volume of color 42 and 51, leaf 5, and staple 34 and 35 for January through September 2018 delivery. No sales were reported. Reports indicated yarn demand had improved at some locations and some mills anticipated increased raw cotton consumption in the near term. Additional demand was good for color 41, leaf 4, and staple 34 for first through fourth quarter 2018; no sales were reported. Demand for denim remained sluggish through retail sectors. Most mills operated five to seven days with limited interruptions reported during Tropical Storm Irma. Demand through export channels was moderate. Representatives for mills throughout the Far East inquired for any discounted styles of cotton. Trading .. No trading activity was reported. South Central Markets Regional Summary North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. The remnants of Hurricane Irma brought moderate winds and up to 2 inches of rain to the region during the week. No serious damage was reported to structures or to standing crops. Daytime temperatures were in the 60s to 80s and overnight lows were in the 50s and 60s. Many fields were saturated. Producers were hoping for warm, dry weather in order for late-planted fields to fully mature and to allow defoliation of early-planted fields to resume. Producers were concerned about the possibility of boll lock as a result of the recent rainfall. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 11, open bolls had reached 51 percent in Arkansas, 41 in Missouri, and 32 percent in Tennessee. NASS reported that the crop condition in Arkansas was rated at 82 percent good-to-excellent, compared with 53 percent in Missouri and 87 percent in good-to-excellent condition in Tennessee. NASS reported a sharp increase of 1.2 million bales in the size of the cotton crop in the latest Crop Production report, released on September 12. Higher than anticipated yields in the Mid-South were cited for part of the increase in production. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. The remnants of Hurricane Irma moved through the region and deposited up to 2 inches of unnecessary moisture. Daytime temperatures were in the 60s to 80s and overnight lows were in the 50s and 60s. Producers were hoping for clear, dry weather so late-planted fields could finish. Defoliation expanded slowly in early-planted fields prior to the storm, but many fields still required several weeks to reach harvest stage. Some harvesting was completed before inclement weather halted field activities. Yields of 1,100 to 1,400 pounds per acre were reported. Yield reductions were expected in the wettest fields. Ginning had begun on a very limited basis in Mississippi. Most producers continued to prepare harvest equipment. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 11, open bolls had reached 82 percent in Louisiana, compared to 47 percent in Mississippi. NASS reported that 46 percent of the crop was in good-to-excellent condition in Louisiana, compared to 64 percent in Mississippi. NASS reported a sharp increase of 1.2 million bales in the size of the cotton crop in its latest Crop Production report, released on September 12. Part of the increase in production was attributed to higher than previously estimated yields in the Mid-South; however, some producers reported evidence of square shedding, boll lock, and boll rot as a result of recent inclement weather. Trading North Delta ..No trading activity was reported. South Delta ..No trading activity was reported. Southwestern Markets Regional Summary East Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was very good. Average local spot prices were lower. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from China, Thailand, and Turkey. In south Texas and the Upper Coast, field activities moved forward with each field presenting a different set of circumstances following the effects of Hurricane Harvey. Some fields experienced total loss, while others were able to be harvested. Damage assessments were ongoing. Stalks had been cut and shredded in the Rio Grande Valley. Ginning continued. In the northern Blackland Prairies (BP), harvesting and ginning had begun under good weather conditions and approximately 10 percent had been harvested. Early yield reports indicated that 850 to 1,050 pounds of lint per acre had been harvested. Some producers applied boll openers and defoliants. Some fields were considered a total loss in the southern BP and others were too soggy to support equipment. Some fields had lint in the bolls following the severe storms from Hurricane Harvey, and were expected to be harvested once soils firmed. The National Agricultural Statistics Service (NASS) announced that they will collect updated information on 2017 harvested acres planted to cotton in Texas. NASS will publish updated estimates in the Crop Production report to be released at noon EDT on Thursday, October 12, if the newly collected data justifies any changes. In Kansas, the dryland stands had begun to bloom out of the top, which were on schedule. Some bolls have begun to open. The irrigated stands are one to two weeks late and have not yet opened. The state could use another good rainfall to help finish the top crop. The NASS Crop Production report released on September 12, forecasted production at 205,000 bales. That is a 189 percent increase from last year. The crop advanced in Oklahoma, with initial harvest aids applied late in the reporting period. Some fields need more heat units to finish maturing. West Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from China, Thailand, and Turkey. The crop made good progress under warm, sunny conditions. Daytime high temperatures increased during the period and reached 97 degrees on September 12 in Lubbock, 3 degrees from setting a record. Heat units built and some fields began to wilt early in the day. Bolls had begun to pop open and were visible from roadways. Some fields need light rain, but all fields need heat units to mature the crop before the first freezing temperatures occur. Verticillium wilt has been reported on some fields. Insect pressure remained light, but experts monitored for late season aphids. Some fields were treated for bollworms. Repair and maintenance were underway at gins ahead of harvesting. Gins in the panhandle expect to start ginning services the first and second week of October. Harvest aids were expected to be applied as early as next week in the far northern parts of the region. The National Agricultural Statistics Service (NASS) announced that they will collect updated information on 2017 harvested acres planted to cotton in Texas. NASS will publish updated estimates in the Crop Production report to be released at noon EDT on Thursday, October 12, if the newly collected data justifies any changes. Trading East Texas .. A moderate volume of mostly color 21 and 31, leaf 2-4, staple 34 and longer, mike averaging 43.3, strength averaging 29.0, and uniformity 76-81 sold for around 70.00 cents per pound, FOB warehouse (compression charges not paid). .. A light volume of color 41, leaf 2 and 3, staple 36, mike 42-47, strength 27-29, and uniformity 78-80 sold for around 65.75 cents, same terms as above. .. A mixed lot containing a light volume of color mostly 43 and better, leaf 2 and better, staple 34 and longer, mike 36-49, strength 28.9, and uniformity averaging 79.2 sold for around 61.50 cents, same terms as above. West Texas .. No trading activity was reported. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local prices were lower. No domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the high 100s for Arizona. Ginning continued uninterrupted in Yuma. Defoliation activities advanced in central Arizona. Initial harvesting was reported, with ginning expected to begin around early October. A few modules were on gin yards. Local sources reported a good growing season, with the expectation of average yields. Three central Arizona gins installed new automated bale bagging systems. One of the bagging systems is a no-strap version. Producers in New Mexico and El Paso, Texas discontinued irrigation schedules. Equipment was prepared for harvest. Producers attended annual meetings. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were lower. Producer interest in contracting was light, as ICE December futures retreated below 70 cents level. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Temperatures were in the high 90s. Thunderstorms brought lightning, hail, rain, and strong winds into the Valley mid-week. Precipitation accumulations were around one-quarter of an inch to one-half of an inch. Straight line winds damaged almond orchards and corn fields, as well as destroyed a cottonseed barn and several poultry structures in the central Valley. No damage was reported to cotton fields. Initial defoliation began in the most mature fields late in the period. The crop continued to make progress, with 12 percent of the crop with open bolls as reported by the National Agricultural Statistics Service for week ending September 10. That figure lagged behind the five-year average of 45 percent. American Pima (AP) 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 slow, as mills interpreted the latest yield estimate of 1,528 pounds per acre in California, down 63 pounds from the August 1 estimate, according to the National Agricultural Statistics Service’s Crop Production report. Local prices have not changed much for new-crop cotton, but the potential is on the up side. Shipper’s price ideas remained firm for 2017-crop cotton, with a few new sales reported. Interest was best from China, India, Pakistan, and Thailand. According to the Foreign Agricultural Service’s export sales report approximately 198,000 bales of 2017-crop AP was committed for the week ending September 7, 2017. Hot, dry weather conditions prevailed in the Far West. No moisture was recorded for Arizona and El Paso, Texas. Approximately one-quarter of an inch of rainfall was deposited in New Mexico and one-quarter to one-half of an inch was recorded in the San Joaquin Valley (SJV) of California. Strong thunderstorms produced straight line winds, which destroyed a cottonseed barn in western Fresno County. Fields were defoliated in central Arizona and initial harvesting had begun. The crop progressed to cut-out stage in the SJV. Producers prepped fields for defoliation. The crop made good progress in New Mexico and El Paso, Texas. Producers attended annual meetings. Trading Desert Southwest .. A moderate volume of 2017-crop Arizona cotton for color 31 and better, leaf 3 and better, and staple 35 and longer was contracted for around even ICE December futures. San Joaquin Valley .. No trading activity was reported. American Pima .. No trading activity was reported. USDA ANNOUNCES SPECIAL IMPORT QUOTA #21 FOR UPLAND COTTON September 14, 2017 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 September 21, 2017, allowing importation of 12,798,043 kilograms (58,780 bales) of upland cotton. Quota number 21 will be established as of September 21, 2017, and will apply to upland cotton pur-chased not later than December 19, 2017, and entered into the U.S. not later than March 19, 2018. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period May 2017 through July 2017, 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.