By admin       2018-01-08

Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher for the week ending December 28, 2017, but steady for the week ending January 4, 2018. Trading of CCC-loan equities was inactive. Producers took advantage of higher ICE futures during the period to book a light volume of 2018-crop cotton. Unseasonably warm daytime temperatures in the mid-70s to 60s dropped into the 30s and 40s during the latter part of the extended two-week reporting period as Winter Storm Grayson brought snow and ice to areas from the Gulf to Atlantic coasts. Portions of the Florida panhandle recorded the first measurable snowfall in 28 years. Areas along the eastern seaboard from northern Florida to Virginia experienced snow, sleet, and freezing rain. Much of the eastern Carolinas received one to five inches of snowfall, with heavier accumulations observed in Virginia. Power outages left tens of thousands without power throughout the region and black ice conditions on roadways delayed travel. Clear and sunny weather prevailed late week, but icy conditions remained due to very cold temperatures with daytime highs in the 30s. The Florence Classing Office was closed late week and sample deliveries to the Macon Classing Office were delayed in some affected areas. Ginning continued as conditions allowed. Other outside activities and fieldwork were at a standstill. Producers considered spring planting options and made plans to attend approaching annual meetings. Textile Mill : Domestic mill buyers inquired for a heavy volume of 2017 and 2018-crop cotton, color 41, leaf 4, and staple 34 and longer for delivery June through December. Mill buyers also inquired for a moderate volume of color 51 and better, leaf 5 and better, and staple 34 and longer for April delivery. No sales were reported. Most mills resumed normal operating schedules following the holidays. Demand through export channels was moderate. Agents throughout out the Far East inquired for any discounted styles of low mike cotton. Trading : A moderate volume of color 21, 31 and 41, leaf mostly 2 and 3, staple 36 and 37, mike 43-49, strength 29-32, and uniformity 81-83 sold for around 475 points on ICE March futures, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). A moderate volume of color 31 and 41, leaf 2 and 3, staple 35-39, mike 37-42, strength 28-31, and uniformity 81-83 sold for around 350 to 375 points on ICE March futures, same terms as above. A moderate volume of color mostly 41 and better, leaf 5 and better, staple 33 and longer, mike 33-50, strength 25-35, and uniformity 79-85 traded at around 81.50 cents per pound, FOB car/truck (Rule 5, compression charges paid). A heavy volume of color 31 and 41, leaf 3-5, staple 34-38, mike 37-49, strength 30-32, and uniformity 80-82 sold for around 81.00 cents, same terms as above. A light volume of color 42 and better, leaf 5 and better, staple 34 and longer, mike 37-53, strength 26-33, and uniformity 79-83 traded at around 79.00 cents, same terms as above. 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 higher for the week ending December 28, 2017, but steady for the week ending January 4, 2018. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts.Seasonably cold weather prevailed during the two-week report period, interspersed with a few days of frigid temperatures. Daytime temperatures were in the 20s and 30s; early morning temperatures were in the single digits to sub-zero conditions due to the wind chill factor. Overnight lows were in the low teens and single digits. No precipitation was reported. Ginning was winding down throughout the region. The Dumas Classing Office had a single shift operating as necessary, while the Memphis Classing Office was also down to a single shift. A few gins in the Memphis territory may operate well into January. Producers made plans to attend regional and national industry meetings, including the Beltwide meetings in San Antonio, Texas. According to the U.S. Drought Monitor, moderate-to-severe drought expanded in Arkansas and the Bootheel of Missouri; soil moisture conditions were adequate in Tennessee. South Delta : Spot cotton trading was slow. Supplies of available cotton were light. Demand was light. Average local spot prices were higher for the week ending December 28, 2017, but steady for the week ending January 4, 2018. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts. Seasonably cold weather prevailed during the two-week report period, interspersed with several days of bitterly cold temperatures. Daytime temperatures were in the 30s; early morning temperatures were in the single digits due to the wind chill factor. Overnight lows were in the teens. No precipitation was reported. A few larger gins were still pressing cotton throughout Mississippi. Outdoor activities were very limited due to freezing conditions. Producers attended various industry meetings, including the Beltwide meetings in San Antonio, Texas. According to the U.S. Drought Monitor, moderate-to-severe drought expanded in northeastern Louisiana and most of Mississippi.

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