MP_CN208
12-16-04       Memphis, TN     USDA Cotton Program, MNB


World market price for upland cotton, in cents per pound, in effect from
12:01a.m., EST, Friday through midnight, EST, Thursday.

Description               Nov.  Nov. Nov. 26 Dec     Dec      Dec
                         12-18 19-25 Dec. 2  3-9    10-16    17-23

Adj. World price 1/      34.39 33.73  33.75 33.63   33.42    33.48
CC adjustment             0.00  0.00  0.00   0.00   0.00      0.00
Loan Defic.Payment (LDP) 17.61 18.27  18.25 18.37   18.58    18.52

1/  Color 41, leaf 4, staple 34, mike 35-36 & 43-49, strength readings of 24-25 grams per tex.



Source:  Farm Service Agency, USDA.

Step 2 payment rate for upland cotton, in cents per pound, in effect from
12:01 a.m. Friday through midnight Thursday.

Description               Nov.  Nov. Nov. 26 Dec     Dec      Dec
                         12-18 19-25 Dec. 2  3-9    10-16    17-23

U.S.  N. Europe price    51.85 52.10  53.15 53.45   52.15    52.00
N. Europe price          49.45 48.79  48.81 48.69   48.48    48.54
Cert. Payment Rate        2.40  3.31  4.34   4.76   3.67      3.46

Source:  Farm Service Agency, USDA.


New York futures contract settlement, designated spot market average
for color 41, leaf 4, staple 34, and 'A' and ' B' Index cotton prices,
in cents per pound.
         Color 41, Leaf 4, Staple 34
Date     Futures Settlement                                          7 Mkt. Avg.
               Mar05     May05       July05       Oct05    Dec05
Dec  10        42.31     42.80       43.78        45.60    46.55           40.94
Dec  13        43.22     43.40       44.27        45.80    46.80           41.98
Dec  14        42.63     43.02       43.74        45.50    46.50           41.27
Dec  15        42.76     43.09       43.75        45.60    46.60           41.36
Dec  16        0.00      0.00        0.00         0.00     0.00            0.00


               Grade 31                     Coarse                    Far
               Staple 35                    Count                    Eastern
               'A (NE)' Index 1/            'B (NE)' Index 1/        'A' Index 1/
Dec  10           0.00                       0.00                     0.00
Dec  13           0.00                       0.00                     0.00
Dec  14           0.00                       0.00                     0.00
Dec  15           0.00                       0.00                     0.00
Dec  16           0.00                       0.00                     0.00


U.S. upland cotton export sales and exports, in running bales, for week and year, marketing years
 2002-2003 and 2003-2004
                         Marketing Years
                          Week       Mkt.Yr.                  Week   Mkt.Yr.
Description              2003-2004                         2004-2005
                         Through Dec 11, 2003              Through Dec 9, 2004
Outstanding sales          -            -                      -     5,057,800
Exports                  208,800     184,100                184,100  2,375,800
Export commitments         -            -                      -     7,433,600
New sales                210,700     250,900                250,900    -
Buy-backs & cancel.      3,200       17,000                  17,000    -
Net sales                207,500     233,900                233,900    -
Sales next mkt.yr.       5,900       40,400                  40,400  265,600

Net Upland sales of 233,900 RB were 31 percent less than the week earlier and 7 percent under the prior 4-week average.  The major buyers were Turkey (69,900 RB), China (60,400 RB), South Korea (27,800 RB), Indonesia (26,400 RB), and Thailand (12,900 RB).  Sales of 40,400 RB for delivery in 2005/06 were primarily for Mexico (36,900 RB).  Exports of 184,100 RB were 15 percent above the previous week and 27 percent over the prior 4-week average.  The primary destinations were Mexico (36,400 RB), China (21,300 RB), Thailand (21,200 RB), Turkey (16,400 RB), South Korea (15,600 RB), and Indonesia (13,700 RB).  Net American Pima sales of 26,000 RB were mainly to Taiwan (8,000 RB), Pakistan (5,400 RB), China (3,300 RB), and India (2,900 RB).  Exports of 18,600 RB were primarily to China (4,800 RB), Taiwan (3,000 RB), Peru (2,800 RB), and Pakistan (2,500 RB).

NOTE:  Data may not add due to rounding.

Source:  Export Sales Reporting Division, Foreign Agricultural Service, USDA.
                                                           December 16, 2004
Stokes Quisenberry
Cotton Program, Market News Branch
3275 Appling Rd
Memphis, TN  38133
www.ams.usda.gov/cotton/mncs/index.htm
stokes.quisenberry@usda.gov