Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Cattle - Hogs / Livestock News Currencies News Energy News Grain News Index News Interest Futures News Metals Futures News Reports: Crops, CFTC, etc Soft Commodities News

Futures and Commodity Market News

USDA - AMS: Weekly Cotton Market Review, narrative (2019-06-07)

USDA U.S. Department of Agriculture - June 7, 2019

Mp_cn812    
June 7, 2019 
Weekly Cotton Market Review  
 


Spot quotations averaged slightly lower than the previous week, according to the USDA, 
Agricultural Marketing Service’s Cotton and Tobacco Program. Quotations for the base 
quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, 
and uniformity 81.0-81.9) in the seven designated markets averaged 63.55 cents per pound 
for the week ending Thursday, June 6, 2019. The weekly average was down from 63.56 last 
week and 87.39 cents reported the corresponding period a year ago. Daily average quotations 
ranged from a low of 62.65 cents Friday, May 31 to a high of 63.99 cents Monday, June 3. 
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 6 
totaled 18,676 bales. This compares to 8,237 reported last week and 14,843 spot transactions 
reported the corresponding week a year ago. Total spot transactions for the season were 
1,204,014 bales compared to 2,025,239 bales the corresponding week a year ago. The ICE 
July settlement prices ended the week at 68.59 cents, compared to 69.34 cents last week. 


Southeastern Markets Regional Summary 


Spot cotton trading was slow.  Supplies and producer offerings were light. Demand was 
light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. 
     
Hot and dry conditions prevailed across Alabama, the Florida Panhandle, and Georgia 
over the weekend and early in the week.  Daytime high temperatures were in the mid-90s, 
but cooled to the mid-to-upper 80s later in the week as localized storms moved across the 
region.  Scattered shower activity brought around one-quarter of an inch to one-inch of 
moisture to areas of central and coastal Alabama, the Florida Panhandle, and areas of 
coastal Georgia.  Planting activity advanced at a slower pace and was halted in some areas 
early in the period, due to lack of moisture. Producers welcomed the wet weather which 
arrived late in the week and invigorated emerging seedlings and young plants.  The moisture 
was needed in dryland fields and to restore soil moisture to finish planting.  Local 
experts reported heavy pressure from thrips in north and south Alabama.  According to 
the National Agricultural Statistic Service’s (NASS) Crop Progress report released 
June 3, cotton planted was ahead of the five-year average in Alabama at 92 percent 
and also in Georgia at 84 percent planted.  
     
Fair to partly cloudy conditions were observed across the Carolinas and Virginia during 
the period.  Daytime high temperatures varied from the mid-80s to mid-90s. Widespread 
showers brought from around one-quarter to one-inch of moisture to areas throughout 
the eastern Carolinas and Virginia early in the period.  Producers welcomed the 
moisture, which helped invigorate heat stressed fields. Planting advanced at a slower 
pace; producers welcomed additional moisture forecast in the near term which will help 
fortify subsoil moisture ahead of final planting activity.  According to NASS, in 
South Carolina cotton planted reached 94 percent, Virginia 93, and in North Carolina 
83 percent planted. 
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of 2019-crop cotton, color 41, 
leaf 4, and staple 34 for November 2019 through October 2020 delivery.  No sales were 
reported.  No additional inquiries were reported; most mills have covered their raw 
cotton needs through the fourth quarter 2019.  
     
Demand through export channels was good as ICE futures trended lower.  Agents for 
mills in India purchased a moderate volume of USDA Green Card Class, color 31, leaf 3, 
and staple 36 for nearby shipment.  Demand was good throughout the Far East for any 
recaps containing discounted styles of cotton. 

Trading 
..
A light volume mixed lot containing color mostly 41 and 51, leaf 3-5, staple 35 and 
longer, mike 37-49, strength 27-30, and uniformity 80-82 sold for around 64.50 cents 
per pound, FOB car/truck (Rule 5, compression charges paid). 


South  Central Markets Regional Summary


North Delta 

Spot cotton trading was inactive.  Supplies of available cotton and demand were light.  
Average local spot prices were steady.  Trading of CCC-loan equities was inactive. 
No forward contracting was reported.   
     
Cloudy to partly sunny skies prevailed during most of the period.  Scattered rain showers 
brought light precipitation to the region mid-week.  A major storm system from a 
tropical low was expected to bring at least 2 inches of rain over the next few days, 
which will benefit dry fields.   Daytime temperatures were in the 80s and 90s.  Overnight 
lows were in the 60s and 70s.  According to the National Agricultural Statistics Service’s 
Crop Progress report released June 3, planting had reached 91 percent in Arkansas, 78 in 
Missouri, and 91 percent in Tennessee.  Although steady progress was made this week, 
these figures remained well behind the five-year average. Local experts reported that 
cotton planting was wrapping up in most areas now that the insurance deadlines for 
full coverage have passed; some fields will remain unplanted.  Thrips were reported in  
newly-emerged cotton, and producers were scouting more mature fields for plant bugs.  
Pinhead squares were observed in early-planted fields.  Producers reported a high 
degree of variability in the emergence rates from field to field, which required 
replanting in many cases to fill-in gaps.  Applications of herbicides and fertilizer 
were made where possible and as necessary. 

South Delta 

Spot cotton trading was slow.  Supplies of available cotton were moderate.  Demand was 
light.  Average local spot prices were steady.  Trading of CCC-loan equities was inactive. 
No forward contracting was reported.       

Sunny to partly cloudy skies dominated the weather pattern during most of the week.  
A tropical low was expected to bring a major storm system late week, accompanied by 3 to 
5 inches of rain.  Dry fields were in need of moisture, but producers expressed concerns 
about more flooding.   Daytime temperatures were in the 80s and 90s.  Overnight lows 
were in the 50s to 70s.  According to the National Agricultural Statistics Service’s 
Crop Progress report released June 3, planting had reached 94 percent in Louisiana and 
77 in Mississippi.  Although steady progress was made this week, these figures remained 
well behind the five-year average; local experts reported that cotton planting was 
completed in all areas; some fields will remain unplanted.  Thrips were reported in 
newly-emerged cotton, while early-planted fields were treated for plant bugs.  Pinhead 
squares were observed in fields that were progressing well under fair conditions.  
Herbicides and fertilizers were applied as necessary. 

Trading 
  
North Delta 
..
No trading activity was reported.  


 
South Delta 
..
A light volume of color 41 and better, leaf 4 and better, staple 36 and longer, mike 35-49, 
and uniformity 79-83 traded for around 150 points on ICE July futures contract, FOB, car/truck 
(Rule 5, compression charges paid). 


Southwestern Markets Regional Summary      .


East Texas 

Spot cotton trading was moderate.  Supplies and producer offerings were moderate.  
Demand was moderate.  Average local spot prices were steady.  Producer interest in 
forward contracting was light.  Trading of CCC-loan equities was moderate.  Foreign 
inquiries were light.  Inquiries were best from Mexico and Taiwan. 
     
Cotton was blooming in the Rio Grande Valley.  Heat units increased significantly, and 
some producers began to apply irrigation water.  Fields were closely monitored for insects 
and treatments were applied as needed.  Cotton was squaring in the Coastal Bend and in 
the Upper Coast.  Some fields needed rainfall, other fields received rainfall.  Producers 
sprayed for weeds and irrigated.  Local planting reports were mixed in the Blackland 
Prairies.  Some areas were able to get most fields planted, and some remained too soggy 
to plant.  Stands had begun to emerge, and others were at the 4-true leaf stage early 
in the reporting period.  Rainfall saturated fields and challenged seedling stands.  
Weeds continued to be a major problem for producers.  Due to excessive rainfall, 
producers were unable to plant all of the intended cotton acres in Kansas, some decided 
to move to alternative crops. Oklahoma producers planted around the rain events.  
Some stands were slow to emerge. 
           
West Texas 

Spot cotton trading was active.  Supplies and producer offerings were moderate.  
Demand was moderate.  Average local spot prices were steady.  Producer interest in 
forward contracting was light.  Trading of CCC-loan equities was slow.  Foreign 
inquiries were light.  Inquiries were best from Mexico and Taiwan. 
     
Multiple weather events played out during the reporting period. Daytime high 
temperatures were in the 80s, with overnight lows in the upper 50s to     mid-60s.  
Planting and replanting continued in the High Plains and in the Rolling Plains.  Most 
areas received rainfall, and those fields were soggy.  Water was standing between rows, 
around the edges of the fields, and some county roads near the fields were under water.  
The crop struggled to establish and advance under different weather conditions.  Stands 
north of Amarillo have seedling disease from constant wet conditions and cooler soil 
temperatures, according to local reports.  A haboob rolled through on June 5, and brought 
blowing dust, hail, and wind up to 68 miles per hour.  Some seedlings were damaged by the 
blowing sand.  Hail knocked out some stands west of Lubbock.  The crop needs drier 
conditions and more heat units to thrive.  Meetings were attended.                 

Trading 
 
East Texas 
..
In Oklahoma, a light volume of mostly color 43, leaf 4, staple 36, mike averaging 35.2, 
strength averaging 27.9, uniformity averaging 80.6, and 100 percent extraneous matter 
sold for around 44.00 cents per pound, FOB car/truck (compression charges not paid). 
..
In Kansas, a mixed lot containing a light volume of mostly color 43,  leaf 6 and 7, 
staple 35 and longer, mike 30-43, strength 26-30, and uniformity 79-81 sold for around 
50.00 cents, same terms as above. 
..
A light volume of mostly color 33 and 43, leaf 5, staple 36 and 37, mike 38-42, 
strength 26-29, uniformity 80-81, and 100 percent extraneous matter sold for around 
42.00 cents, same terms as above.  
..
A light volume of CCC-loan equities traded for 4.25 to 6.25 cents. 

West Texas 
..
A heavy volume of mostly color 31 and 41, leaf 3 and 4, staple 37 and longer, mike 
averaging 33.0, strength 27-34, and uniformity 78-82 sold for around 62.25 cents 
per pound, FOB car/truck (compression charges not paid).   
..
A heavy volume of color 21-41, leaf mostly 4, staple 36, mike averaging 32.7, 
strength 27-34, and uniformity 77-82 sold for around 61.25 cents, same terms as above.  
..
A heavy volume of mostly color 31, leaf 4, staple 37 and longer, mike 30-34, 
strength 27-33, and uniformity 78-82 sold for around 61.00 cents, same terms as above.   
..
A light volume of CCC-loan equities traded for 4.25 to 6.25 cents. 


Western Markets Regional Summary 


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.  Average local 
prices were weak.  No forward contracting or domestic mill activity was reported.   
Foreign mill inquiries were light.     
     
Heat units were building in Arizona and the crop made good progress.  Irrigation 
was underway in some areas.  In El Paso, TX, severe storms early in the reporting 
period brought hail that caused damage to some stands.  Industry experts were 
assessing damage to determine the percentage of lost acreage.  Fields not affected 
by inclement weather progressed.  Cottonseed was shipped by rail and truck to 
southwestern destinations for cattle feed.  Stands in New Mexico advanced and 
benefited from rainfall.  
       
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.  Average local 
prices were weak.  No forward contracting or domestic mill activity was reported.   
Foreign mill inquiries were light.  
  
In the SJV, daytime high temperatures were in the upper 80s to low 100s, and 
overnight lows were in the 60s.  Warmer weather helped the crop to recover from 
severe storms that had brought hail.  Industry members waited to determine how 
many acres were actually lost and which stands were going to progress.  Stands 
had begun to square.  Meetings were attended.   
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies were moderate.  Demand was light.  Average 
local prices were steady.  No forward contracting or domestic mill activity was reported.   
Foreign mill inquiries were light.   
     
In the San Joaquin Valley, producers were optimistic about the stands that missed the 
recent hail storm.  Plants were squaring and neared first bloom.  The AP acres in 
Yuma, AZ progressed as temperatures were in the low 100s.  Irrigation was applied.  
Stands had begun to square in earlier planted fields in Central Arizona.  Warmer 
temperatures in the 90s helped struggling stands to advance.  Insect monitoring was 
underway and some treatments were applied.  Severe storms brought up to four and       
one-half inches of rain and hail in El Paso, TX.  Many stands were damaged and or 
lost from hail.  Damage assessments were ongoing.  The crop matured in New Mexico 
and benefited from recent rainfall.         
     
Trading 
 
Desert Southwest 
..
No trading activity was reported. 

San Joaquin Valley 
..
No trading activity was reported. 

American Pima 
..
No trading activity was reported. 



Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.


Extreme Futures: Movers & Shakers

Hottest

Actives

Gainers

Today's Hottest Futures
Market Last Vol % Chg
Loading...

close_icon
open_icon