Mp_cn812 March 22, 2019 Weekly Cotton Market Review Spot quotations averaged 153 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 70.28 cents per pound for the week ending Thursday, March 21, 2019. The weekly average was up from 68.75 last week, but down from 79.19 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 69.73 cents Monday, March 18 to a high of 71.64 cents Thursday, March 21. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 21 totaled 70,736 bales. This compares to 74,401 reported last week and 33,642 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 912,887 bales compared to 1,672,000 bales the corresponding week a year ago. The ICE May settlement prices ended the week at 77.18 cents, compared to 74.30 cents last week. Southeastern Markets Regional Summary Spot cotton trading was inactive. 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 prices to book a light volume of 2019-crop cotton. Scattered showers brought light moisture to portions of the lower Southeast over the weekend. Day-to-day accumulated rainfall totals measured from one-quarter of an inch to one-half of an inch of precipitation throughout central Alabama. Sunny conditions prevailed the remainder of the week with daytime high temperatures in the mid-to-upper 60s. Producers completed fieldwork and prepared equipment for spring planting. In Georgia, a few gins remained on gin days as they waited for the last modules to arrive from fields. Producers attended local production meetings and considered planting options for the 2019-crop season. A mix of clear to cloudy conditions dominated the weather pattern across the Carolinas and Virginia during the period. Scattered shower activity brought around one-half of an inch to one-inch of weekly accumulated moisture to areas of eastern North Carolina and southeast Virginia during the week. Mostly sunny conditions prevailed in South Carolina during the period. Daytime high temperatures varied from the low 50s to mid-60s. Producers completed outside activities and considered planting options for the 2019-crop season. Textile Mill Domestic mill buyers inquired for a moderate volume of 2019-crop cotton, color 51 and better, leaf 4, and staple 34 and longer for first quarter through fourth quarter 2020 delivery. No sales were reported. Most mills operated five to seven days. Yarn demand was moderate. Demand through export channels was moderate. Domestic cotton shippers indicated foreign mill buyers throughout the Far East were mostly buying hand-to-mouth to cover immediate-to-nearby raw cotton needs as they eyed higher ICE futures prices and cautiously monitored trade talk developments between the U.S. and China. Indonesian mill buyers booked a light volume of 2019-crop cotton, color 31, leaf 3, and staple 36 for December shipment. Agents in Pakistan, Taiwan, Thailand, and Turkey purchased a moderate volume of color 42 and 52, leaf 4 and 5, and staple 34 and longer for nearby shipment. Trading .. A light volume mixed lot containing color 43 and better, leaf 5 and better, staple 37 and 38, mike 43-49, strength 28-30, and uniformity 80-82 sold for around 64.25 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 moderate. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Merchants were slowly clearing existing inventories. Producers continue to monitor commodity markets and international trade developments as planting season approaches. Variable winter weather characterized the weather pattern during the reporting period. A cold front mid-week brought light showers and cool temperatures to the region. Less than one-half of an inch of rain was reported in most areas; however, the additional moisture exacerbated current flood conditions. Daytime temperatures were in the low 60s. Overnight lows were in the 30s and 40s, slightly below historical averages. No fieldwork was reported, due to cold temperatures, saturated soils, and standing water in low-lying areas. Producers were booking seed and other inputs as planting season approaches. The National Weather Service issued a river flood warning and a very high pollen count advisory. 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 as merchants struggled to clear existing inventory. Producers continue to monitor commodity markets and international trade developments as planting season approaches. Seasonal conditions characterized the climatic pattern during the reporting period. A winter weather system mid-week brought light showers and cool temperatures to the region. Less than one-half of an inch of rain was reported in most areas; however, the additional moisture aggravated current flood conditions. Daytime temperatures were in the 60s. Overnight lows were in the 40s, slightly below historical averages. The National Weather Service issued a very high pollen advisory, to go along with the river flood warnings already in effect. The Mississippi River at Greenville, MS was flowing at about 8 feet above flood stage; most tributaries were also overflowing their banks. Clear skies were expected for the next few days. No fieldwork was reported, due to saturated soils and flood conditions. Producers were hoping for an extended period of warm, dry weather as they prepared for spring planting by booking seed and other inputs. 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. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was active. Foreign inquiries were light. Interest was best from Pakistan, Taiwan, and Turkey. Planting was underway in the Coastal Bend, Upper Coast, and in the Rio Grande Valley (RGV). Fieldwork was active under sunny conditions. Stands have emerged in the RGV. In the Blackland Prairies, fieldwork was underway ahead of cotton planting. Producers were busy planting corn. Kansas received rainfall that left gin yards muddy and wet. Ginning continued uninterrupted, but there were problems moving some modules because of soggy conditions. Ginning continued in Oklahoma. West Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Producers monitored the market closely to determine marketing strategies for the remainder of the crop. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was active. Interest was best from Pakistan, Taiwan, and Turkey. Seasonal conditions returned with daytime high temperatures in the low 50s to low 60s, and overnight lows in the upper 20s to mid-30s. Soils quickly firmed under sunny, windy conditions, and fieldwork was active. Attention turned to managing winter weeds and preparing fields for planting. Producers continued to book seed ahead of planting. Trading East Texas .. In Texas, a mixed lot containing a heavy volume of mostly color 52 and better, leaf 3-5, staple 38 and 39, mike 45-50, strength 27-30, and uniformity 79-82 sold for around 63.75 cents per pound, FOB warehouse (compression charges not paid). .. In Oklahoma, a light volume of mostly color 42, leaf 3 and 4, staple 32 and 33, mike averaging 40.7, strength averaging 27.0, and uniformity averaging 79.7 sold for around 55.75 cents, FOB car/truck (compression charges not paid). .. In Kansas, a light volume of mostly color 32, leaf 5 and better, staple 35 and 36, mike averaging 29.2, strength averaging 27.6, and uniformity averaging 80.1 sold for around 54.50 cents, same terms as above. .. A heavy volume of CCC-loan equities traded for 9.75 to 14.50 cents. West Texas .. A heavy volume of mostly color 21 and 31, leaf 2 and 3, staple 36 and longer, mike 35-49, strength 26-35, and uniformity 78-83 sold for around 75.50 cents per pound, FOB car/truck (compression charges not paid). .. A heavy volume of mostly color 31 and 41, leaf 3 and 4, staple 36 and longer, mike 41-48, strength 27-33, and uniformity 77-82 sold for around 71.00 cents, same terms as above. .. A mixed lot containing a heavy volume of mostly color 32 and better, leaf 5 and better, staple 34 and longer, mike 25-32, strength 27-30, uniformity 77-81, and 50 percent extraneous matter sold for around 58.00 cents, same terms as above. .. A heavy volume of CCC-loan equities traded for 9.25 to 15.50 cents. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was active. Supplies and demand were moderate. Average local spot prices were higher. 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 high 70s to low 80s. No rainfall was recorded in the period. Planting continued in Yuma, with over 80 percent of the crop planted. The remaining cotton will be planted once vegetable harvest is completed. Approximately 50 percent of cotton was up to a stand. Fieldwork was active in Safford, AZ; New Mexico, and El Paso, TX. Ginning continued in Arizona. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Daytime high temperatures were mostly in the 60s. Producers were waiting for a storm system to pass through the Valley to begin planting. Precipitation totals measured around one-quarter of an inch. Many locales throughout the Valley reached 90 to 110 percent of their normal rainfall amounts. The Sierra Nevada snowpack is growing, as recent storms pushed the statewide snowpack to 153 percent of the April average. Fieldwork was limited. American Pima (AP) Spot cotton trading was moderate. 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 continues to slow inquiries and sales. Daytime high temperatures were in the 60s to 70s in the Far West. Weather delayed planting in the San Joaquin Valley. Planting was active in Yuma, AZ. Local sources reported that seedlings were up. Fieldwork was active in New Mexico, and El Paso. Ginning continued in California. Trading Desert Southwest .. A moderate volume of mostly color 11 and 21, leaf 3 and better, staple 36 and 37, mike averaging 42.8, strength averaging 28.6, and uniformity averaging 80.5 sold for around 100 points on ICE May futures, uncompressed, FOB warehouse. .. A heavy volume mixed lot consisting of mostly color 31 and better, leaf 3 and better, and staple 36 and longer sold for around 350 points off ICE May 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 #22 FOR UPLAND COTTON March 21, 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 28, 2019, allowing importation of 12,665,348 kilograms (58,171 bales) of upland cotton. Quota number 22 will be established as of March 28, 2019, and will apply to upland cotton purchased not later than June 25, 2019, and entered into the U.S. not later than September 23, 2019. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period November 2018 through January 2019, 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.