Weekly Cotton Market Review, narrative
Mp_cn812 
February 9,  2018 
Weekly Cotton Market Review 


Average quotations were 169 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 74.02 cents per pound for the week ending Thursday, 
February 8, 2018.  The weekly average was down from 75.71 last 
week, but up from 73.15 cents reported the corresponding period 
a year ago.  Daily average quotations ranged from a high of 
74.64 cents Friday, February 2 to a low of 73.58 cents Wednesday, 
February 7.  Spot transactions reported in the Daily Spot Cotton 
Quotations for the week ended February 8 totaled 39,562 bales.  
This compares to 40,895 bales reported last week and 38,852 spot 
transactions reported the corresponding week a year ago. Total 
spot transactions for the season were 1,340,712 bales compared 
to 1,240,711 bales the corresponding week a year ago.  The ICE 
March settlement prices ended the week at 76.62 cents, compared 
to 78.35 cents last week. 


Southeastern Markets Regional Summary


Spot cotton trading was slow.  Supplies and producer offerings 
were moderate. Demand was moderate.  Average local spot prices 
were lower.  Trading of CCC-loan equities was inactive. 
     
Wet conditions over the weekend gave way to a window of sunny and 
clear weather before wet weather returned to the region late week.  
Widespread showers brought rainfall to areas throughout the entire 
Southeastern region during the period.  The heaviest precipitation 
totals measured around 2 to 3 inches in areas from north Alabama 
through central Georgia to the western Carolinas.  Lesser totals 
of around 1 to 2 inches were observed elsewhere throughout the 
region.  Daytime high temperatures were in the upper 50s to low 
70s across the lower Southeast, with slightly cooler temperatures 
observed in the high 40s to mid-60s in the upper Southeast.  
Ginning was winding down in the region; a few larger gins continued 
to process backlogs of modules and some gins remained on gin days 
as they waited for the remaining modules to be retrieved from fields.  
Fieldwork was at a standstill due to wet conditions.  Producers 
attended regional meetings. 
 
Textile Mill 

Inquiries from domestic mills were light.  No sales were reported. 
Most mills have covered their immediate-to-nearby raw cotton needs.  
Demand for open-end and ring-spun yarn was moderate and some mills 
reported increased finished product demand at some locations.  Most 
mills operated five to seven days. 
     
Demand through export channels was moderate.  Agents throughout the 
Far East inquired for any discounted styles of cotton.       

Trading 
..
Mixed lots containing color mostly 31 and 41, leaf 3-5, staple 
mostly 36-38, mike 35-49, strength 28-30, and uniformity 80-82 
sold for around 78.25 cents per pound, FOB car/truck (Rule 5, 
compression charges paid). 


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. Cotton was being delivered to fulfill contracts.  
Some warehouses reported delays due to a shortage of trucks. 

Cold winter temperatures and mostly cloudy skies characterized the 
weather pattern during the week.   Daytime temperatures were in the 
30s and 40s.  Overnight lows were in the teens and 20s.  Heavy rain 
storms moved through parts of the territory.  Approximately 1 inch 
of rain was reported in areas north of Memphis, while other areas 
received up to 3 inches.  According to the U.S. Drought Monitor, 
moderate-to-severe drought conditions persisted in many areas, in 
spite of recent rainfall.  Most     drought-stricken areas have 
received less than 50 percent of average rainfall over the past 
90-day period.  Producers attended, or made plans to attend, various 
industry economic and agronomic workshops and meetings.  
 
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.  Cotton was being delivered to fulfill contracts.  
Some warehouses reported that the pace of shipments was slower 
than usual due to a shortage of trucks. 

Cold temperatures and wet conditions prevailed during the week.   
Daytime temperatures were mostly in the 50s.  Overnight lows were 
in the 30s.  A cold front, mid-week, brought up to 4 inches of rain          
to many places in Louisiana and Mississippi. River flood watches 
were in effect in several counties      and parishes.  According 
to the U.S. Drought Monitor, moderate-to-severe drought persisted 
in drought stricken areas in northeastern Louisiana and parts of 
Mississippi, due to lower than average rainfall over the past 
90 days.  Producers attended, or made plans to attend, various 
industry workshops and meetings that included topics in areas 
of agronomic and economic interest to producers.   

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 modereate.  Supplies and producer 
offerings were moderate.  Demand was moderate.  Average local 
spot prices were lower.  Producer interest in forward contracting 
was moderate. Trading of CCC-loan equities was inactive.  Foreign 
inquiries were light.  Interest was best from China, India, and Turkey. 
     
Light to moderate rainfall interfered with field preparations in 
the Rio Grande Valley and the Coastal Bend. Daytime temperature highs 
were erratic, ranging from the low 50s to upper 80s.  Overnight 
lows were in mid-40s to low 60s.  Local sources reported that 
conditions were too cold to start spring planting.  Ginning continued 
in the northern Blackland Prairies.  Fieldwork was active, but a 
cold front brought intermittent rain and caused delays.  The processing 
of cotton at Kansas gins was slow, due to dry conditions and the 
potential for flash fires caused by static electricity.  Immature 
bolls also caused ginning to proceed slower than normal. Thousands 
of modules remained in the fields to be transported to the gin yards. 
Kansas and Oklahoma fields were approximately 95 percent harvested. 
Transporting modules from fields to the gin yards was active in 
Oklahoma. Ginning was around 50 percent completed.  Stalks were 
shredded and some fertilizer was applied. Producers attended seed 
meetings and booked seed for the planting season. The western side 
of Oklahoma remains droughty.      
 
West Texas
 
Spot cotton trading was moderate.  Supplies and producer offerings 
were moderate.  Demand was moderate.  Average local spot prices were 
lower.  Producer interest in forward contracting was light.  Trading 
of CCC-loan equities was slow.  Foreign inquiries were light. Interest 
was best from China, India, and Turkey.  
     
Half of the ginning operations had finalized the season in the High Plains. 
The Lamesa Classing Office moved to a one shift schedule and the Lubbock 
Classing Office scaled back to a partial two shift schedule. Sample 
receipts continued to decline.  Attention was turned to field tillage. 
Fields with sandy soils received more preparation than clay fields. 
Some stalk shredding was reported; the shredding implement leaves behind 
small dirt clods that help prevent erosion. As of February 6, no 
significant precipitation had been received in 90 days in Lubbock.  
Daytime temperature highs were in the upper 30s to mid-60s and overnight 
lows were in   the single digits to mid-30s. Moderate-to-high fire danger 
elevation was in effect. A cold front, which brought wintry precipitation, 
moved across the state on February 6 and 7, but there was no confirmation 
that the moisture made it to the ground.  The area would benefit from a 
good general rainfall to help reverse the persistent droughty conditions.  
Meetings were held for training and educational purposes.  Producers booked seed.        

Trading 
 
East Texas 
..
In Oklahoma, a heavy volume of color 11 and 21, leaf 3 and better, staple 39 
and 40, mike 39-44, strength 27-30, and uniformity 80-82 sold for 
around 78.00 cents per pound, FOB car/truck (compression charges not paid).    
..
A light volume of color 11 and 21, leaf 3 and better, staple 39 and 40, 
mike 36-41, strength 27-29, and uniformity 79-81 sold for around 75.75 
cents, same terms as above.     
..
A light volume of mostly color 31 and better, leaf 1 and 2, staple 37 and 
longer, mike averaging 40.4, strength 25-30, and uniformity 77-81 sold for 
around 74.50 cents, same terms as above.  
..
A moderate volume of mostly color 23 and better, leaf 2 and 3, staple 36 
and 37, mike 37-45, strength 27-32, and uniformity 78-82 sold for around 
73.25 cents, same terms as above.  
..
A light volume of mostly color 31 and 41, leaf 3 and 4, staple 37, mike 32-41, 
strength averaging 29.0, uniformity 79-80, and 75 percent extraneous matter 
sold for around 72.00 cents, same terms as above.  

West Texas 
..
A light volume of mostly color 21, leaf 2 and 3, staple mostly 35 and longer,
mike 36-41, strength 28-32, and uniformity 78-81 sold for around 73.00 
cents per pound, FOB car/truck (compression charges not paid). 
..
A mixed lot containing a light volume of mostly color 21 and 31, leaf 2 and 3, 
staple 34 and longer, mike   38-45, strength 26-29, and uniformity 78-82 
sold for around 72.25 cents, same terms as above. 
..
A light volume of mostly color 31, leaf 3 and 4, staple 33-35, mike 36-39, 
strength 28-31, and uniformity   78-80 sold for around 71.00 cents, same terms as above. 
..
A light volume of CCC-loan equities traded for around 13.00 cents. 


Western Markets Regional Summary
 

Desert Southwest (DSW) 

Spot cotton trading was slow.  Supplies were moderate.  Demand was light.  
Average local spot prices were lower.   Producers delivered 2017-crop cotton 
to the co-op, merchant marketing pools, or into the  CCC-loan program.  
No new producer sales were reported as ICE futures prices trended lower 
in the period.  Producers inquired for 2018-crop contracts. No contracts 
were signed.  Some producers signed into merchant or cooperative marketing 
pools. No domestic mill activity was reported.  Foreign mill inquiries were 
light.  Interest was best from India.  A few shippers reported consignment 
sales to China.      
     
Hot, dry weather continued. No rainfall was recorded in the period.  
Temperatures were in the low to mid-80s in Yuma, Arizona.  Initial planting 
began the week of January 29. A couple of gins in central Arizona continued 
to process cotton.  Local sources reported that New Mexico and El Paso, Texas 
producers intended to plant more cotton, as alternative row crop prices for 
corn and hay were down.  Ginning was completed in New Mexico and El Paso, Texas.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies were light.  Demand was moderate.  
Average local spot prices were lower.  No forward contracting or domestic 
mill activity was reported. Foreign mill inquiries were light.  
     
Seedbed preparations were underway. Pre-plant irrigations were active. 
Unseasonably warm and dry conditions continued.  Most locations throughout 
the Valley broke temperature records on Wednesday, February 7 when temperatures 
reached into the high 70s to low 80s.  In some locales, temperatures 
were 20 degrees warmer than average for this time of year.  The Sierra 
Nevada Mountains snowpack continues to run below average.    
 
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.  No contracts were signed.  Foreign mill 
inquiries were light and mostly for 2018-crop price discovery. Shipper�s 
offering prices for new-crop AP were firm.   Interest was best from China, 
Peru, and India.  Sources estimated that approximately 75 percent of the 
estimated U.S. AP production was committed and sold.   
     
Temperatures were unseasonably warm and conditions were dry in the Far West.  
No rainfall was recorded in the period.  Temperatures were in the high 80s 
in Yuma, Arizona.  Initial planting began last week.  Local experts 
reported a light volume of seedling cotton emergence in the period.  
Fieldwork was active throughout the region.  No planting was reported 
in California, New Mexico, and El Paso, Texas.   

Trading 
 
Desert Southwest 
..
In New Mexico, a light volume of mostly color 31, leaf 3 and better, 
staple 36 and 37, mike averaging 40.1, strength averaging 28.2, and 
uniformity averaging 79.7 sold for around 74.75 cents per pound, FOB        
car/truck (compression charges not paid). 
..
A light volume of mostly color 31 and better, leaf 4 and better, staple 36 
and longer, mike averaging 38.4, strength averaging 27.6, and uniformity 
averaging 78.9 sold for around 73.50 cents, same terms as above.   

San Joaquin Valley 
..
No trading activity was reported. 
 
American Pima 
..
No trading activity was reported.