Mp_cn206 February 22, 2019 Weekly Cotton Market Review Spot quotations averaged 81 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, and uniformity 81.0-81.9) in the seven designated markets averaged 66.88 cents per pound for the week ending Thursday, February 21, 2019. The weekly average was up from 66.07 last week but down from 75.25 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 66.18 cents Friday, February 15 to a high of 68.33 cents Thursday, February 21. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended February 21 totaled 62,571 bales. This compares to 25,185 reported last week and 83,744 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 600,564 bales compared to 1,478,507 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 72.19 cents, compared to 71.71 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 higher. Trading of CCC-loan equities was inactive. Producers and domestic cotton shippers were busy either fixing ICE March futures or rolling the basis to a forward trading month ahead of First Notice Day. Partly cloudy to overcast conditions prevailed across Alabama, the Florida Panhandle, and Georgia during the period. Daytime high temperatures varied from the upper 50s to mid-70s with overnight lows dipping into the 30s mid-week. Heavy early morning fog was also observed in some areas. Widespread thunderstorms brought moderate precipitation to areas across north Alabama and north Georgia. Weekly accumulated precipitation totals measured from one to two inches, with lesser accumulations of trace amounts to around one-quarter of an inch observed farther south. No fieldwork was reported. Many gins had finished operations for the season; some remained on gin days as they waited for the remaining modules to arrive from fields. Mostly cloudy conditions prevailed across the Carolinas and Virginia during the period with daytime high temperatures in the low 40s to low 60s. Widespread rain shower activity brought moisture to areas throughout portions of South Carolina, North Carolina, and Virginia during the week. Rainfall totals measured from one-half of an inch to one inch of moisture in areas of South Carolina with heavier totals between one to two inches observed in North Carolina and Virginia. Ginning neared completion; some gins remained on gins days as they waited for producers to harvest remaining fields. However, saturated soils and wet conditions forecast near term made fieldwork unlikely. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and 35 for June through October 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. Agents in the Far East inquired for a moderate volume of color 21, leaf 3, and staple 36 for nearby shipment. No sales were reported. Trading .. A light volume of color mostly 31, leaf 2 and 3, staple 36-38, mike 35-49, strength 28-31, and uniformity 79-82 sold for around 72.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). .. A moderate volume of color 52 and better, leaf 5 and better, staple 32 and longer, mike 43-52, strength 24-27, uniformity 80-82, and containing approximately 50 percent extraneous matter sold at around 59.00 cents, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). South Central Markets Regional Summary North Delta Spot cotton trading was inactive. Supplies of available cotton were moderate. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported as producers demonstrated lackluster interest in booking 2019-crop cotton. A major storm system brought heavy rains to most of the Memphis territory. A wintry mix of snow, sleet, and freezing rain was received in northern areas. As much as 3 inches of accumulated moisture was reported. Flash flood and river flood warnings were in effect. Daytime temperatures were in the 40s and 50s. Overnight lows dipped into the upper 20s. No fieldwork was reported. Producers continued to monitor commodity markets as they looked forward to the 2019-crop season. 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 higher. Trading of CCC-loan equities was inactive. No forward contracting was reported even though planting season is rapidly approaching. A major storm system brought heavy rains 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 40s and 50s. Overnight lows were in the upper 30s. Temperatures were slightly below historical averages. No fieldwork was reported; fieldwork is behind average for this time of the year due to saturated soils from incessant rainfall. Local experts reported that some acreage currently slated for corn could shift into other crops, including cotton, unless an extended period of warm, dry weather settles in. 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. 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 moderate. Producers continued to deliver previously contracted cotton to merchant and cooperative marketing pools. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Daytime high temperatures were in the low 70s to low 80s in the Rio Grande Valley. Overnight low temperatures were in the low 50s to upper 60s. Some cotton was planted, along with grain crops. South Texas producers were planting corn and sorghum. Fields were prepped ahead of cotton planting. Rain continued intermittently in the Blackland Prairies, further slowing final harvesting and ginning. Herbicide and fertilizer had been applied to some plowed fields. Kansas ginning continued uninterrupted during periods of cool and dry outside conditions. Soils had firmed enough to support equipment and modules were transported to gin yards. Daytime high temperatures were in the low 30s to mid-50s, and overnight lows were in the low 20s to low 30s in Altus, Ok, with snow showers reported. Ginning continued. 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. Producers monitored the market closely to determine in what way to market the remainder of the crop. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was slow. Daytime high temperatures were in the mid-30s to low 80s, and overnight lows were in the teens to low 50s. Wintry precipitation was received on February 19, and some locations remained below freezing the entire day. Some fields were plowed, but most fieldwork was stalled due to windy conditions. Ginning continued at some locations. Local producer meetings were held. Trading East Texas .. In Oklahoma, a light volume of mostly color 21 and 31, leaf 3 and 4, staple 35 and 36, mike 41-46, strength 30-33, and uniformity 79-81 sold for around 66.75 cents per pound, FOB car/truck (compression charges not paid). .. A light volume of mostly color 22, leaf 2 and 3, staple 33 and longer, mike 36-42, strength 27-30, and uniformity 77-79 sold for around 60.00 cents, same terms as above. .. A light volume of mostly color 31 and 41, leaf 4 and 5, staple 35, mike averaging 45.3, strength averaging 30.0, uniformity averaging 81.4, and 100 percent extraneous matter sold for around 59.00 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 31, leaf 4 and better, staple 37 and longer, mike 34-45, strength 29-34, and uniformity 78-81 sold for around 69.25 cents per pound, FOB car/truck (compression charges not paid). .. A moderate volume of mostly color 31 and 41, leaf 3, 4, and 5, staple 37 and longer, mike 40-51, strength 30-33, and uniformity 80-82 sold for around 65.25 cents, same terms as above. .. A mixed lot containing a heavy volume of mostly color 31 and 32, leaf 4 and better, staple 34 and longer, mike 33-43, strength 28-33, uniformity 77-80, and 25 percent extraneous matter sold for around 63.25 cents, same terms as above. .. A light volume of CCC-loan equities traded for 9.00 to 9.25 cents Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was active. Supplies and demand were moderate. Average local spot prices were lower. 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 have kept most mills on the sidelines. Temperatures in Arizona were in the mid-60s. A cold front entered the region dropping daytime high temperatures into the 50s late in the period. Rainfall accumulations were around one-quarter of an inch, with more on the way. Fields in Yuma, AZ were readied for planting. Cool temperatures and rain delayed planting. Ginning continued in Arizona and El Paso, TX. The Visalia Classing Office ended the night shift on February 15. This was the longest running night shift since the office opened in 1991. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. 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 keep most mills on the sidelines. Daytime high temperatures were in the 50s and 60s, with overnight lows in the 30s. Freeze warnings were in effect late in the period. A cold front entered the state bringing scattered rain showers early in the reporting period. Rainfall accumulations ranged from one-quarter of an inch in the south Valley and up to one inch in the northern SJV. Many locales in the SJV reached their annual rainfall totals during the period. It is encouraging to see the reservoirs filling. One saw gin announced it will permanently closed after the 2018 season. The Visalia Classing Office ended the night shift on February 15. This was the longest running night shift in the history of the office. American Pima (AP) Spot cotton trading was inactive. 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. The on-going trade/tariff dispute between the US and China continued to keep some mills on the sidelines. Daytime high temperatures were in the 50s to 60s in the Far West. Precipitation amounts ranged from one-quarter of an inch to one inch for the region. Snow was received in higher elevations of Arizona and California. The Visalia Classing Office ended the night shift on February 15. This was the longest running night shift since the office opened in 1991. Trading Desert Southwest .. A moderate volume of mostly color 31 and better, leaf 3 and better, staple 37 and longer, mike averaging 44.8, strength averaging 32.0, and uniformity averaging 81.1 sold for around 100 points on ICE May futures, uncompressed, FOB warehouse. .. A moderate volume mixed lot consisting of mostly color 31 and 41, leaf 5 and better, and staple 37 and longer sold for around 63.50 cents per pound, same terms as above. .. A moderate volume of mostly color 31, leaf 3 and better, staple 35 and longer sold for around 175 points on ICE March futures, same terms as above. San Joaquin Valley .. No trading activity was reported. American Pima .. No trading activity was reported. USDA ANNOUNCES SPECIAL IMPORT QUOTA #18 FOR UPLAND COTTON February 21, 2019 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 February 28, 2019, allowing importation of 12,619,815 kilograms (57,962 bales) of upland cotton. Quota number 18 will be established as of February 28, 2019, and will apply to upland cotton purchased not later than May 28, 2019, and entered into the U.S. not later than August 26, 2019. 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.