Weekly Cotton Market Review

MEMPHIS - Dec 14/15 - SNS -- The USDA released its latest review of cotton market conditions in the United States, reviewing conditions through the week ending 11 14.

December 11, 2015
Weekly Cotton Market Review
Spot cotton quotations were 105 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 63.02 cents per pound for the week ended Thursday, December 10, 2015.
The weekly average was up from 61.97 cents last week, and 58.52 cents reported the corresponding period a year ago. Daily average
quotations ranged from a high of 63.40 cents Wednesday, December 9 to a low of 62.37 cents Thursday, December 10. Spot transactions
reported in the Daily Spot Cotton Quotations for the week ended December 10 totaled 138,555 bales. This compares to 112,209 bales
reported last week and 171,949 spot transactions reported the corresponding week a year ago. Total spot transactions for the season
were 531,498 bales compared to 641,238 bales the corresponding week a year ago.  The ICE March settlement prices ended the week at
63.77 cents, compared to 63.95 cents last week.
Southeastern Markets Spot cotton trading was active.  Supplies and producer offerings were heavy. Demand was good. Average local spot
prices were higher. Trading of CCC-loan equities was inactive.
Mostly clear to fair conditions prevailed across the lower southeast during the period with daytime temperatures in the upper 60s to
lower 70s.  Sunny weather helped soft soils to firm and allowed harvest activities to advance at a rapid pace in Alabama, the Florida
panhandle, and Georgia. Despite the dry conditions, low-lying fields remained wet in some areas of Alabama.  Ginning continued
uninterrupted. Some gins in Georgia increased their ginning estimates due to better than anticipated yields.  In the Carolinas and
Virginia, fieldwork advanced at a rapid pace early in the period as mostly sunny conditions prevailed over the weekend with daytime
high temperatures in the high 50s to low 60s.  Light rain and drizzle interrupted fieldwork in some localized areas midweek.  In South
Carolina, producers made good progress in drier fields where cotton was worth harvesting and soil conditions supported equipment. As
harvesting nears completion, local experts reported that cotton qualities were generally poor to average at best.  In North Carolina,
wet areas may be abandoned if drier conditions do not allow pickers to enter fields in the weeks ahead.  Fieldwork neared completion
in Virginia.
South Central Markets
North Delta Spot cotton trading was inactive.  Supplies were light. Producer offerings were light.  Average local spot prices were
higher. Trading of CCC-loan equities was inactive. No forward contracting was reported.
     Clear and unseasonably warm conditions prevailed during the period. Daytime temperatures were in the mid-60s and overnight
temperatures were in the mid­40s. Harvesting was virtually completed.  Ginning was rapidly winding down. Producers worked to complete
fall field work, including stalk shredding. According to the U.S. Drought Monitor, soil moisture throughout the region was rated at
adequate to surplus. More rain is needed to help restore water levels in lakes and reservoirs.  Producers made plans
to attend local, regional, and national industry events.
South Delta Spot cotton trading was slow. Supplies were light. Producer offerings were light.  Demand was good for color 31 and better.
Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported.
     Dry and unseasonably warm conditions prevailed during the period. Daytime temperatures were in the upper 60s and
overnight temperatures were in the 40s to 50s. Field operations had mostly concluded for the winter; however, a small amount of
acreage remained unharvested in Mississippi and Louisiana.  Stalks required shredding on some fields in order to prevent the
overwintering of insect pests.  According to the
U.S. Drought Monitor, topsoil moisture throughout the region was rated at adequate to surplus. More rain is needed to replenish
depleted groundwater supplies, ponds, and reservoirs. Producers attended the Louisiana Cotton and Grain Association Winter Meeting
and made plans to attend other local, regional and national industry events.
Southwestern Markets
East Texas-Oklahoma Spot cotton trading was active.  Supplies and producer offerings were moderate.  Demand was heavy. Average local
spot prices were higher. Trading of CCC-loan equities was slow.  Foreign mill inquiries were very light.
South Texas producers continued to prep fields ahead of spring planting in ideal conditions with temperatures in the upper 60s and
low 70s.  The Winter Garden area continued limited pressing operations. Eastern Texas producers continued to finalize harvesting
activities and remaining modules were transported to gin yards.  Some gins completed operations. In Kansas, producers gradually
returned to harvesting and ginning activities as a warming trend dominated the state with temperature highs in the 60s and 70s.
In Oklahoma, sunny, warm conditions prevailed. Fieldwork was limited because soils remained too wet to support field equipment from
recent rainy weather.  Local experts  estimated that approximately  80 percent was off the stalk.
West Texas
Spot cotton trading was active. Supplies and producer offerings were heavy.  Demand was heavy.  Average local spot prices were higher.
Trading of CCC-loan equities was inactive.  Foreign mill inquiries were very light.
Field progress advanced under dry, sunny conditions with temperature highs in the low 60s to upper 70s, and overnight lows in the
low 30s and upper 40s. Soils firmed and producers returned to the fields and moved closer to final harvesting. Stalks were cut in
some fields and incorporated into the soil.  Module trucks were busy picking up and delivering modules for ginning operations.
Some gins decided to complete the season with one shift. Local experts anticipate harvesting to be completed by the end of the December
and most ginning completed by the end of January.  Harvesting and ginning activities off of the Caprock were less than 50 percent
completed.  Meetings were attended.
Western Markets
 Desert Southwest (DSW) Spot cotton trading was active. Supplies were moderate.  Demand was light.  Average local spot prices were
higher. No forward contracting or domestic mill activity was reported.  Foreign mill inquiries were light.
Temperatures were in the mid-to-high 70s in Arizona.  Ginning progressed. Producers prepared fields for the winter. Warehouses were
busy shipping and receiving cotton.  Clear conditions advanced ginning in New Mexico and El Paso, Texas. Producers plowed down stalks.
The Visalia Classing Office estimated that approximately 60 percent of the Far West Upland crop was classed.
San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were moderate.  Demand was light.  Average local spot prices were
higher. No forward contracting or domestic mill activity was reported.  Foreign mill inquiries were light.
Temperatures were in the low-to-mid 60s.  Ginning continued.  The Visalia Classing Office estimated that approximately 60 percent of
the Far West Upland crop was classed.
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.  Interest was best from India and
Pakistan. Demand was best for any off-grade qualities, especially in leaf 4 and greater with extraneous matter.  Shippers expressed
concern with the lack of demand in export channels due to market conditions in China and unfavorable governmental cotton policies in
Egypt.
Temperatures were in the 60s and 70s for Arizona, California, New Mexico, and El Paso, Texas.  No rainfall was recorded in the period.
A large winter storm moved in from the Pacific late in the period.  Ginning continued. The Visalia Classing Office estimated that
approximately 70 percent of the Far West AP crop was classed.
Textile Mill Domestic mill buyers inquired for a moderate volume of color 42-53, leaf 5 and better, and staple 32 and longer for April
through December 2016 delivery.  No sales were reported.  Most mills covered their immediate-to­nearby raw cotton needs. Domestic
cotton shippers reported that some yarn spinners lowered their quality requirements for raw cotton deliveries, due to the predominance
of lower classing grades reported at some USDA Cotton Classing Offices.  Demand for open-end and ring-spun yarn was moderate.  Most
mills planned around one week of downtime for the Christmas holiday for routine maintenance.
     Inquiries through export channels were moderate.  Agents for mills in Bangladesh inquired for a moderate volume of color 41,
leaf 4, and staple 35 and longer for nearby shipment.  Representatives for mills in Pakistan inquired for a moderate volume of
color 42 and 51, leaf 5 and 6, and staple 34 and longer for nearby shipment. No sales were reported.
.. 	A heavy volume of mixed lots containing color mostly 31 and 41, leaf mostly 2 and 3, staple 34-37, mike 37­52, strength 27-30,
and uniformity 80-82 sold for around 375 points on ICE March futures, FOB car/truck, Georgia terms (Rule 5, compression charges paid,
0 days free storage).
.. 	Mixed lots containing color mostly 31 and 32, leaf 2 and 3, staple 37-39, mike 43-49, strength 28-31, and uniformity 80-83 sold
for around 350 points on ICE March futures, same terms as above.
.. 	A moderate volume of color mostly 41 and 42, leaf 3 and 4, staple 33-37, mike 43-52, strength 29-32, and uniformity 81-83 sold
for around 300 to 325 points on ICE March futures, same terms as above.
.. 	A moderate volume of color 42, leaf 3 and 4, staple mostly 34 and 35, mike 43-49, strength 27-29, and uniformity 79-81 sold for
around even ICE March futures, same terms as above.
.. 	A moderate volume of color 62-83, leaf 3 and 4, staple 33 and 34, mike 50-52, strength 26-29, and uniformity 78-80 sold for
around 42.00 cents per pound, same terms as above.
North Delta
.. 	No trading activity was reported.
South Delta
.. A heavy volume of color 31 and 41, leaf 3-5, staple 34 and longer, mike 50-52, strength 30-33, and
uniformity 81-83 sold for around
65.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
.. A moderate volume of color 52 and better, leaf 2-4, staple
34 and longer, mike 43-52, strength 26-31, and
uniformity 78-84 traded at around 58.00 cents per pound, same terms as above.
East Texas
.. 	In Texas, a moderate volume of color 41 and 51, leaf 5 and 6, staple 39, mike 40-43, strength 31-34, and uniformity 82-84 sold
for around 56.50 cents per pound, FOB warehouse (compression charges not paid).
.. 	Mixed lots containing a moderate volume of color 42 and better, leaf 6 and better, staple 33-37, mike averaging 40.7, strength
averaging 29.6, and uniformity averaging 81.3 sold for around 53.75 cents, same terms as above.
.. 	In Oklahoma, a light volume of color 11 and 21, leaf 3 and better, staple 37 and longer, mike 39-45, strength 29-33, and
uniformity 81-83 sold for around 66.25 cents, FOB car/truck (compression charges not paid).
.. 	Mixed lots containing a moderate volume of color 31 and better, leaf 3 and better, staple 36-37, mike 41-49, strength 30-33,
and uniformity 81-83 sold for around 63.50 cents, same terms as above.
.. 	A moderate volume of mostly color 31 and 41, leaf 7 and better, staple 38 and longer, mike 33-37, strength 30-35, and
uniformity 79-82 sold for around 54.00 cents, same terms as above.
.. 	A light volume of CCC-loan equities traded for 9.00 cents per pound.
West Texas
.. 	A heavy volume of color 11 and 21, leaf 3 and better, staple 36 and 37, mike averaging 40.0, strength averaging 31.5, and
uniformity averaging 80.0 sold for around 66.25 cents per pound, FOB car/truck (compression charges not paid).
.. 	Mixed lots containing a heavy volume of color 31 and better, leaf 3 and better, staple 36 and 37, mike 44-48, strength 29-30,
and uniformity 80-82 sold for around 65.25 cents, same terms as above.
.. 	A heavy volume of color 41 and better, leaf 4 and better, staple 38 and longer, mike 35-43, strength 31-33, and uniformity 77-84
sold for around 63.25 cents, same terms as above.
.. 	A moderate volume of mostly color 21, leaf 4 and better, staple 36 and longer, mike averaging 35.0, strength averaging 31.3,
and uniformity averaging 80.2 sold for around 60.50 cents, same terms as above.
Desert Southwest
.. 	A heavy volume of  2015-crop cotton mostly color 31 and better, leaf 3 and better, mostly staple 36 and longer, mike 37-49,
strength averaging 30.0, and uniformity averaging 80.00 sold for around 250 to 275 points on ICE March futures, uncompressed,
FOB warehouse.
.. 	Similar lots containing mike 50-53 sold for around 700 points off ICE March futures, same terms as above.
.. 	A moderate volume of color 41, leaf 5 and 6, staple 36-37, mike 37-49, strength averaging 29.2, and uniformity averaging 80.0
sold for around 900 points off ICE March futures, same terms as above.
San Joaquin Valley
.. 	No trading activity was reported.
 American Pima
.. 	No trading activity was reported.
Number of Bales in Certificated Stocks
Delivery Points  Stocks as of 12-10-2015  Awaiting Review  Non-Rain Grown Cotton
Dallas/FT. Worth, TX  19,869  0  0
Galveston, TX  12,434  0  0
Greenville, SC  244  0  0
Houston, TX  1,910  0  0
Memphis, TN  30,790  0  0
Total  65,247  0  0
Source: USDA, AMS, Cotton and Tobacco Program

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STAT News Service