By Marc Lewkowitz, Supima Cotton
June 10, 2016
Summer is upon us and the temperatures across the growing belt have made their leap into more normal seasonal temperatures. The early spring weather proved to be a bit challenging with cooler temperatures, some isolated rain, wind and even some hail. However, the crop is coming along well with the first blooms already emerging. Supima’s Vice Chairman, Ted Sheely from California shared the photos below of the current crop conditions.
American Pima export sales have continued with robust weekly USDA sales reports. The latest report for sales through May 26 already places export sales for the year at 513,500 bales with 10 more reporting weeks remaining for the current crop year. Additionally, export shipments already stand at 426,500 bales versus the year-end final of 444,600 bales last year.
China continues to be the biggest importer of Supima cotton despite the extensive subsidization of their own domestic cotton production with reports indicating that those subsidies can be as high as 61 us¢/lb. Supima staff along with representatives of NCC, WCSA and NCC recently met with the USDA and numerous congressional staff members to raise concerns about the anti-competitive domestic subsidies that China is implementing. These subsidies have resulted in more than a doubling of China’s domestic production with another increase expected again this year. The increase in production has also affected global supply balances that have impacted market prices and kept them artificially low.
China has consistently been the largest importer of American Pima from the early 2000’s. However, many other key importing countries have increased their imports of American Pima looking for consistency of quality and supply that is not available from any other extra-long staple cotton market. Countries such as India, Pakistan, Turkey and Peru have all increased their imports and others such as Egypt and Vietnam have also made noticeable increase in their imports.
From USDA: For the week ending June 9, 2016 and shipments through June 2, 2016
JUNE 2 — Net sales of 6,800 bales were reported for the week versus 9,600 bales in sales the previous week. Current registered export sales for the 2015/16 crop year now total 520,400 bales. This level of sales is 129.1% of the sales level at the same time last year when 403,100 bales in sales had already been registered. Current shipments stand at 145.2% of last year with 437,700 bales shipped versus 301,500 bales shipped at the same time last year.
There were 7,000 bales in new purchases made this week by China (4,900), Japan (900), India (500), Taiwan (500), Indonesia (100) and Turkey (100). There were no destination changes this past week. There were 200 bales in cancellations this past week from Japan (-200).
Export shipments this past week totaled 11,200 bales versus 14,100 bales the previous week. Shipments week went to India (4,600), China (3,300), Vietnam (2,100), Switzerland (300), Turkey (300), Indonesia (200), Pakistan (200), Taiwan (200) and Korea (100).
The top five leading importers for the 2015/16 crop year are led by China with purchases of 183,000 bales. India, Pakistan, Turkey and Peru round out the top five with purchases of 115,900 bales, 44,800 bales, 42,500 bales and 22,100 bales respectively. These five nations account for 78.5% of all the export-based purchases of American Pima made to date this year. There were 17,800 new forward sales reported this week to India (17,800) and Japan (100). The current new crop sales totals stand at 30,800 and 0 bales respectively for the 2016/17 and 2017/18 years.
Export Sales Summary
|
Destination |
06/9/16* |
2014/15 |
2013/14 |
2012/13 |
2011/12 |
|
Belgium |
0.0 |
0.1 |
0.1 |
0.1 |
1.6 |
|
Germany |
10.1 |
11.9 |
16.0 |
15.4 |
11.5 |
|
Italy |
1.4 |
1.0 |
2.0 |
1.5 |
3.1 |
|
Portugal |
0.0 |
0.1 |
0.0 |
0.0 |
0.0 |
|
Switzerland |
2.4 |
5.5 |
0.9 |
2.3 |
3.0 |
|
Turkey |
42.5 |
5.6 |
27.5 |
37.3 |
15.9 |
|
Other Western Europe |
2.9 |
0.2 |
0.0 |
1.0 |
0.4 |
|
Europe Totals |
59.3 |
24.4 |
46.5 |
57.6 |
35.5 |
|
Bangladesh |
9.2 |
10.8 |
12.1 |
27.9 |
14.4 |
|
China |
183.0 |
228.1 |
391.6 |
451.0 |
298.7 |
|
India |
115.9 |
63.6 |
78.7 |
126.2 |
76.6 |
|
Indonesia |
20.2 |
15.3 |
30.5 |
33.1 |
29.7 |
|
Japan |
13.1 |
14.2 |
16.3 |
15.1 |
14.2 |
|
Korean Republic |
2.4 |
3.3 |
10.0 |
9.7 |
18.6 |
|
Pakistan |
44.8 |
29.2 |
26.9 |
63.8 |
100.3 |
|
Taiwan |
3.8 |
4.9 |
3.0 |
3.8 |
5.8 |
|
Thailand |
14.4 |
15.4 |
23.2 |
25.6 |
13.5 |
|
Other Asia and Oceania |
13.3 |
3.6 |
0.5 |
0.1 |
1.1 |
|
Asia Totals |
420.1 |
388.4 |
592.8 |
756.3 |
572.9 |
|
Brazil |
0.8 |
0.2 |
0.5 |
1.4 |
0.4 |
|
Canada |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Chile |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Ecuador |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Guatemala |
0.2 |
0.1 |
0.3 |
0.5 |
0.4 |
|
Honduras |
0.8 |
0.8 |
1.3 |
0.4 |
0.3 |
|
Mexico |
1.9 |
2.5 |
2.6 |
3.1 |
3.8 |
|
Peru |
22.1 |
16.7 |
22.9 |
14.5 |
27.2 |
|
Salvador |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Venezuela |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
Western Hemisphere Totals |
25.8 |
20.3 |
27.6 |
19.9 |
32.1 |
|
Rest of World |
15.4 |
11.8 |
15.3 |
32.8 |
9.0 |
|
World Totals |
520.4 |
444.6 |
681.7 |
866.3 |
649.6 |
(Source: Agfax.com)