Market Update | Monday, May 09, 2016
May 2016 Supply and Demand Update
By Marc Lewkowitz
Demand for American Pima has rebounded from last year through consistent and strong weekly sales. Export sales for American Pima are reported at 470,300 bales as of April 28. This exceeds the export level of 444,600 bales from last year with another 13 weeks to go in this crop year. At this point last year, American Pima export sales only totaled 340,300 bales. The last 27 weeks have shown steady and strong demand for American Pima with average weekly sales in the 10 - 15,000 bale range. With a weekly continuation of these figures through the end of the crop year, it is foreseeable that the final export sales figure will easily add on over 100,000 bales in additional sales. The chart below highlights the relative acceleration of American Pima sales for the current crop year over the previous year.
The latest USDA acreage information points to an increase of American Pima cotton plantings for this year. The current USDA forecast estimates that there will be a total of 215,000 acres, an increase of over 38%. According to the USDA’s Prospective Plantings report from March 31, planted acreage in Arizona is expected to reach 20,000 acres; California 165,000; New Mexico 8,000; and, Texas 22,000. There have been some early weather issues including cold temperatures, high winds, rain and hail that have already impacted what was planted. Within the industry there has already been much conversation that the initial numbers might be too high and especially so in California, where some indicate that the estimated harvested acreage will only be around 150,000 acres. The next crop production report is scheduled to be released on May 10 and can be accessed via this link.