Mp_cn206
January 8, 2009

Average spot cotton quotations were 175 points higher than the previous week, 
according to the USDA, Agricultural Marketing Service?s Cotton Program.  Quotations 
for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 
26.5-28.4, uniformity 81) in the seven designated markets averaged 45.70 cents per 
pound for the week ended Thursday, January 8.  The weekly average was up from 43.95 
cents reported last week, but down from 62.63 cents reported the corresponding period a 
year ago.  Daily average quotations ranged from a low of 44.79 cents on Monday, 
January 5 to a high of 46.63 cents on Tuesday, January 6.  Spot transactions reported in 
the Daily Spot Cotton Quotations for the week ended January 8 totaled 56,150 bales, 
compared with 10,199 last week and 107,069 bales a year ago.  Total spot transactions 
for the season were 502,075 bales, compared to 824,513 bales the corresponding week a 
year ago.  The ICE March futures settlement prices ended the week at 50.42 cents, 
compared to 49.02 cents reported last week.  

Prices are in effect from January 9-15, 2009

Adjustment World Price (AWP)             39.03	     ELS Competitiveness Payment            0.00
Loan Deficiency Payment (LDP)           12.97	     Fine Count Adjustment  2007 Crop    1.04
Coarse Count Adjustment (CCA)   	     0.00	     Fine Count Adjustment 2008 Crop     0.64

Source:  Farm Service Agency, FSA, USDA

Southeastern Markets

Spot cotton trading was moderate.  Producer offerings were moderate.  Demand was 
moderate.  Average local spot prices were higher.  Supplies were moderate.  Trading of 
CCC-loan equities was inactive.
	A cold front brought  heavy precipitation to portions of north Alabama, north 
Georgia, and  the eastern Carolinas during the period.  Flash flooding and severe 
thunderstorm warnings were in effect throughout much of the region.  Temperatures 
dropped into the mid to high 40s during the middle of the period, but warmer 
temperatures returned late in the period.  
    South Central Markets

  Spot cotton trading was moderate.  Producer offerings were moderate.  Demand was 
moderate.  Average local spot prices were higher.  Trading of CCC-loan equities was 
active.  Producers were offering CCC-loan equities up to five cents, but most producer 
bids were in the two to three cent range. Inquiries from representatives of domestic and 
foreign mills were light.  No sales were reported.  
	Several weather systems brought cold temperatures and freezing rain to the region 
during the reporting period.  Accumulations of precipitation ranged from one to two 
inches.  Flooding was reported in a few low-lying areas.  Temperatures ranged from the 
low 20s to the upper 60s.  Topsoil moisture was generally rated at adequate to surplus for 
the region.  No fieldwork was reported.  A couple of gins had gin days and produced a 
few hundred bales.  A few isolated fields remained unpicked due to inclement weather.  

Southwestern Markets

East Texas/Oklahoma

Spot cotton trading was moderate in the East Texas/Oklahoma market.  Producer 
offerings were heavy.  Demand was moderate.  Average local spot prices were higher.  
Trading of CCC-loan equities was slow 
in the East Texas/Oklahoma market.  Merchants lowered their bids from three cents to 
one to two cents.  
	
	Variable temperatures and dry conditions dominated the weather pattern in East 
Texas during the reporting period.   A  few  scattered showers were re-
ceived in the Coastal Bend area, but accumulations were limited to trace amounts of 
moisture.  Rain was 
desperately needed to sustain cover crops and to replenish depleted soil moisture.  No 
fieldwork was reported.  Most producers were still considering their planting options for 
2009.  Harvesting was virtually completed in Kansas and Oklahoma.  Most gins had 
completed pressing operations for the season.  A few larger gins were expected to 
continue to operate for several more weeks.

West Texas

Spot cotton trading was active in the West Texas markets.  Trading of CCC-loan equities 
was moderate.  Producer offerings of new-crop cotton were heavy.  Demand was 
moderate.  Average local spot prices for west Texas were higher. Producers felt 
compelled to sell their cotton because of the low quality (low mike and bark) this season.  
They did not want to continue to carry this cotton through the year.  Producers took 
advantage of the spike in the ICE futures market to sell some discounted cotton.  Most 
merchants did not want to add to their inventory unless it was lots that were primarily 
color 31 and better, leaf 3 and better, staple 35 and longer, premium mike and no bark.  
	Weather conditions were cold and dry.  Temperatures were in the mid 70s early in 
the period then dropped down to the low 40s.  Harvesting was virtually completed.   
Ginning slowed down to gin days.  

 Western Markets

 Spot cotton trading was inactive in the San Joaquin Valley (SJV).   Supplies of 2008-crop 
cotton were heavy.  Demand was very 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 40s to low 50s.  The Valley received about one-tenth 
of an inch of rainfall early in the period.  Conditions remained dry.  Ginning slowed with 
just a few roller-gins operating.  

Spot trading of Upland cotton was inactive in the Desert Southwest (DSW).  Supplies of 
2008-crop cotton were heavy.  Demand continued very light.   Average local spot prices 
were higher.   No forward contracting or domestic mill activity was reported.  Foreign 
mill inquiries were light.  Traces of rainfall were recorded during the reporting period.  
Ginning continued with approximately 60 percent of the crop ginned.

American Pima spot cotton trading was inactive.  Supplies of 2008-crop cotton were 
heavy.  Demand was very light.  Average local prices were steady.  Foreign mill 
inquiries were light.  Ginning continued in California and Texas.

Textile mill.  Inquiries from domestic mill buyers were very light.  No sales were 
reported.  Most mills returned to their normal operating schedules of six to seven days 
following extended holiday downtime.  Some mills cancelled or rescheduled deliveries 
of raw cotton into the spring, due to sluggish product sales.  Domestic mill buyers were 
working through the recently issued regulations and guidelines for the textile economic 
aid program authorized under the Economic Adjustment Assistance Program.
	Inquiries through export channels were moderate.  Representatives for Turkish mills 
purchased a moderate volume of USDA Green Card Class, color 41, leaf 4, and staple 
34 for January 2009 shipment.  Agents for Vietnamese mills inquired for a moderate 
volume of color 31, leaf 3, and staple 35 for March shipment.  Demand was best 
throughout the Far East for any discounted or low-grade styles of cotton.

AMERICAN PIMA WEEKLY 
EXPORT REPORT
(For the week ending January 1, 2009 and shipments thru December 25, 2008)

Net new export sales for the week were reported as 100 bales versus 1,300 bales reported 
the previous week. Current registered export sales for the 2008/09 crop year are now 
79,900 versus 79,800. This level of sales is 16 % of the sales level at the same time last 
year when 509,300 bales in sales had already been registered. Current shipments stand at 
17% of last year with 39,500 bales shipped versus 225,200 bales shipped at the same time 
last year.
	This week?s purchases were made by Turkey (100).  There were 0 bales in 
destination changes this past week.  There were 0 bales in cancellations this past week.
	Export shipments this past week totaled 800 bales versus 400 bales during the 
previous week. Shipments this past week went to India (400), Peru (400) and Japan 
(100).
	The top five leading importers for the 2008/09 crop year are led by Indonesia with 
purchases of 20,700 bales.  Germany,  Japan, China and India round out the top five with 
purchases of 15,400, 7,400 bales, 6,600 bales, and 6,400 bales respectively. These five 
nations account for 71% of all the export based purchases of U.S. Pima made to date this 
year.
	There were 0 bales of new forward sales this week to.  The current new crop sales 
totals stand at 0 bales and 0 bales respectively for 2009/10 and 2010/11.

Southeastern

A heavy volume of color mostly 41, leaf 3 and 4, staple 34 and longer, mike 
37-49, strength 27-29, and uniformity 79-81 traded at around 350 to 375 
points off ICE March futures, FOB car/truck, Georgia terms (Rule 5, 
compression charges paid, 30 days free storage).
Mixed lots containing color mostly 31, leaf 3 and 4, staple mostly 33 and 34, 
mike 37-49, strength 28-30, and uniformity 78-80 sold at around 400 
points off ICE March futures, same terms as above.
Mixed lots containing color mostly 41, leaf 3-5, staple 33 and longer, mike 
43-53, strength 27-30, and uniformity 80-82 traded at around 600 to 675 
points off ICE March futures, FOB car/truck (Rule 5, compression 
charges paid). 

South Central

North Delta

A light volume of 2007-crop cotton, color 52 and better, leaf mostly 6 and 
better, staple 32 and longer, mike 31-51, strength 24-34, and uniformity 
77-83 sold at around 38.25 cents per pound, FOB car/truck (Rule 5, 
compression charges paid).
A moderate volume of color mostly 41 and better, leaf 5 and better, staple 34 
and longer, strength 27-33, and uniformity 79-84 traded at around 450 
points off ICE March futures, FOB car/truck (Rule 5, compression 
charges paid).
A heavy volume of CCC-loan equities traded at around two and one-half to 
four cents.

 South Delta
A light volume of 2007-crop cotton, color 52 and better, leaf mostly 6 and 
better, staple 32 and longer, mike 31-51, strength 24-34, and uniformity 
77-83 sold at around 38.25 cents per pound, FOB car/truck (Rule 5, 
compression charges paid).

Southwestern
East Texas-Oklahoma

A light volume of even-running lots, color 31, leaf 3, staple 37 and longer, 
mike 37-47, strength 29-32, and uniformity 78-84 sold at around 46.50 
cents per pound, FOB care/truck. 
A light volume of color 41 and better, leaf 4 and better, staple 35 and longer, 
mike 38-42, strength 28-31, and uniformity 78-82 sold at around 44.00 
cents, same terms as above.
A light volume of color 41 and better, leaf 4 and better, mike 42-52, strength 
24-28, and uniformity 76-80 sold at around 37.25 cents, FOB warehouse.
A moderate volume of CCC-loan equities traded at around one and one-half to 
two cents.

 West Texas

A moderate volume of 2008-crop cotton, mostly color 31 and better, leaf 3 
and better, staple 34 and longer, mike 36-49, strength averaging 29.0, with 
20 percent bark or less sold for around 42.50 to 46.00 cents per pound, 
FOB car/truck.
A moderate volume of mixed lots containing mostly color 32 and better, leaf 3 
and better, staple 35 and longer, mike 25-33, strength averaging  28.0, 
with 40 to 100 percent bark traded for around 31.00 to 39.00 cents, same 
terms as above.
A moderate volume of 2007 forfeited CCC-loan cotton, mostly 31 and better, 
leaf 2 and better, staple 35 and longer, mike 32-42, strength averaging 
30.0, with a light percentage of extraneous matter (bark)  sold for around 
38.00 cents, FOB warehouse.  
A moderate volume of 2008-crop equities traded for around two cents.

Western

        San Joaquin Valley
No trading activity was reported.
        Desert Southwest
No trading activity was reported.
       American Pima
No trading activity was reported.