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 (2019-07-26)

USDA U.S. Department of Agriculture - July 26, 2019




Mp_cn812   
July 26, 2019 
Weekly Cotton Market Review  
 
 

Average spot quotations averaged 113 points higher 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 57.71 cents per pound for the week ending Thursday, July 25, 2019.  The weekly 
average was up from 56.58 last week, but down from 84.44 cents reported the corresponding 
period a year ago. Daily average quotations ranged from a low of 56.75 cents Friday, 
July 19 to a high of 58.39 cents Wednesday, July 24. Spot transactions reported in the 
Daily Spot Cotton Quotations for the week ended July 25 totaled 6,375 bales. This compares 
to 3,250 reported last week and 522 spot transactions reported the corresponding week 
a year ago. Total spot transactions for the season were 1,271,313 bales compared to 
2,059,198 bales the corresponding week a year ago. The ICE Oct settlement prices ended 
the week at 63.81 cents, compared to 60.78 cents last week. 


Southeastern Markets Regional Summary


Spot cotton trading was inactive.  Supplies and producer offerings were light.  Demand 
was light.  Average local spot prices were higher. Trading of CCC-loan equities was inactive. 
     
Sunny to partly cloudy conditions were observed across the lower Southeastern region 
during the period.  Seasonably hot daytime high temperatures in the low to mid-90s gave way 
to cooler temperatures in the mid-to-upper 80s as a cold front moved across the region late 
week. Scattered showers brought moderate moisture to areas throughout Alabama, the Florida 
Panhandle, and Georgia over the weekend and early in the week.  Weekly accumulated precipitation 
totals measured from one-half of an inch to two inches in areas from the Gulf to the Atlantic 
Coast, with heavier amounts observed in localized areas.  The rainfall benefitted dryland fields 
in southeastern Alabama and central Georgia, where vital moisture was needed as moderate drought 
conditions persisted. Local experts reported many dryland fields were blooming out of the top, 
due to dry conditions.  The crop advanced at a rapid pace; squaring neared completion and 
boll-setting progressed. Producers applied growth control regulators.  Insect pressure was 
moderate.  The moisture helped to suppress spider mite populations. Producers continued treatments 
for stinkbug infestations. Bollworm pressure was light to moderate and producers treated fields 
that met thresholds.  In Alabama, a light flight of corn earworms was reported.  Producers monitored 
fields for silverleaf whiteflies and local experts encouraged growers to destroy vegetable fields 
after harvest that can host the pests and build their populations.  According to the National 
Agricultural Statistic Service’s (NASS) Crop Progress report released July 22, boll-setting 
advanced to 60 percent in Georgia and 50 percent in Alabama. 
     
Mostly sunny to fair conditions prevailed across the upper Southeastern region during the period.  
Hot daytime high temperatures in the mid-to-upper 90s cooled into the upper 80s to low 90s late in 
the week as a cold front entered the region. Widespread rainfall brought moisture to areas throughout 
North Carolina,  eastern South Carolina, and Virginia.  Rainfall totals measured from 1 to 2 inches 
of moisture in some areas. Producers welcomed the rainfall which invigorated plants and enhanced 
boll-setting in the top of the crop in older fields.  The crop progressed at a good pace and squaring 
neared completion. Producers applied plant growth regulators.  Producers continued to apply treatments 
to combat stink bugs.  Producers scouted fields for bollworms and treated fields that met threshold limits.  
Plant bugs were present, but pressure was light.  In Virginia, lygus infestations were reported in some 
fields.  According to NASS, boll-setting reached 53 percent in the Carolinas and 32 percent in Virginia. 
 
Textile Mill 

Inquiries from domestic mill buyers remained light.  No sales were reported.  Most mills have covered 
their raw cotton needs through October 2019.  Demand for open-end and ring-spun yarn was moderate.   
     
Demand through export channels was moderate.  Agents for mills throughout the Far East inquired for any 
discounted or low-grade styles of cotton. 

Trading 
..
No trading activity was reported. 


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 higher.  Trading of CCC-loan equities was inactive. Lack 
of demand and low market prices continue to discourage interest in forward contracting the 
current crop.  Very few producers locked-in prices on at least a portion of their crop 
earlier in the year, when December ICE futures were around 75.00 cents per pound. 

A cooling trend followed in the wake of the oppressive heat and humidity that the region 
endured as a result of Tropical Storm Barry.  Daytime highs were in the 80s and overnight 
lows were in the 60s.  Producers welcomed the relief from the hot temperatures; however, 
due to the lateness of the crop, especially in Missouri, late-planted fields will require 
every heat unit they can accumulate before cold temperatures effectively end the growing 
season this fall.   The crop made good progress under normal conditions.  A few dry fields 
had to be irrigated to maintain adequate soil moisture for normal plant development. 
According to the National Agricultural Statistics Service’s Crop Progress report released 
July 22, boll-setting advanced to 79 percent in Arkansas, 6 in Missouri, and 24 percent in 
Tennessee.  Producers carefully monitored plant bug and bollworm populations.  Ground rigs 
and aerial applicators treated fields as necessary to control infestations of insect pests. 
The Southern Cotton Ginners Association completed its series of annual regional meetings, 
which serve to inform its members of important issues effecting the cotton industry. 
 
South Delta 

Spot cotton trading was inactive. Supplies of available cotton were light.  Demand was light.  
Average local spot prices were higher.  Trading of CCC-loan equities was inactive. Lack of 
demand and low market prices continue to discourage interest in forward contracting the current 
crop.  Very few producers locked-in prices on at least a portion of their crop earlier in the 
year, when December ICE futures were around 75.00 cents per pound. 

Temperatures moderated considerably in the wake of Tropical Storm Barry, and producers welcomed 
the respite from the intense heat.  Daytime temperatures were in the 80s and overnight lows were 
in the mid-60s.  Fields remained saturated in those areas that received the highest amounts of 
rainfall from the recent storm, while some portions of western Louisiana were in need of rainfall.  
According to the National Agricultural Statistics Service’s Crop Progress report released July 22,     
boll-setting advanced to 59 percent in Louisiana and 33 percent in Mississippi.  Producers carefully 
monitored plant bug and bollworm populations.  Fields were treated as necessary to control 
infestations of insect pests and excessive vegetative growth.  Local experts reported that 
early-planted fields were approaching cut-out. 

Trading 
  
North Delta 
..
A light volume of CCC-loan equities traded for around 8.50 cents per pound. 

South Delta 
..
No trading activity was reported.  


Southwestern Markets Regional Summary      .


East Texas 

Spot cotton trading was slow.  Supplies were moderate. Demand and producer offerings were 
light.  Average local spot prices were higher.  Producer interest in forward contracting was 
light.  Trading of CCC-loan equities was slow.  Foreign inquiries were light, but moderate for new-crop.   
     
Harvest aids were applied to mostly dryland fields in the Rio Grande Valley, according to the Pest 
Cast newsletter released on July 19.  Final irrigation was applied to other fields.  Producers disked 
rotted fields that had been flooded by a late June storm.  Some fields remained soggy and had not 
completely dried.  Defoliants were applied in the Coastal Bend.  Harvesting neared, but was interrupted 
by storms that brought 2 to 3 inches of rainfall on July 23.  Green and brown stink bugs, aphids, and 
bollworms were scouted in the Blackland Prairies.  Treatments were applied as needed.  Stand variability 
was reported by industry experts with some at cut-out and some that had begun to bloom.  In Kansas, 
progress was made under drier field conditions with daytime high temperatures in the mid-80s to low 100s.  
Some damage was reported in the southeastern part of the state from recent storm activity.  Some fields 
remained flooded.  Ginning of the 2018-crop was finalized, and all samples have been graded.  Irrigated 
stands were blooming and began to set small bolls in Oklahoma.  Irrigation water was applied.  Dryland 
stands responded to the increase of heat units, but a slow, soaking rain is needed.  Soils had begun to dry.  
Dryland fields were in a wide range of maturity with some stands beginning to bloom, and other stands in advanced bloom.        
 
West Texas 

Spot cotton trading was slow.  Supplies and producer offerings were light.  Demand was light.  Average 
local spot prices were higher.  Producer interest in forward contracting was light.  Trading of CCC-loan 
equities was inactive.  Foreign inquiries were light, but moderate for new-crop.   
     
The crop continued to make good progress with daytime high temperatures in the mid-80s to low 90s, and 
overnight lows in the low 60s to low 70s.  Irrigation water was applied.  A slow, soaking rain would be 
beneficial to re-moisten topsoil, and help fruit retention on the dryland crop.  Fieldwork was active with 
cultivation and spraying for weed control on non-windy days.  Hoe crews manually removed weed escapes.  
Fertilizer was applied.  Insect pressure was light, but experts monitored for fleahoppers, stink bugs, 
bollworms, and aphids.  Multiple industry meetings and events were held during the reporting period.                        

Trading 
 
East Texas 
..
In Kansas, a light volume of mostly color 42 and 43, leaf 5 and 6, staple 35, mike averaging 42.2, strength 
averaging 27.9, uniformity averaging 81.4, and 100 percent extraneous matter sold for around 45.00 cents 
per pound, FOB car/truck (compression charges not paid). 
..
In Oklahoma, a light volume of mostly color 41, leaf 4, staple 35, mike 39-44, strength averaging 28.6, 
uniformity averaging 79.6, and 25 percent extraneous matter sold for around 52.50 cents, same terms as above.  
..
In Texas, a light volume of mostly color 42, leaf 5, staple 34 and 35, mike averaging 39.5, strength 
averaging 28.2, and uniformity averaging 79.7 sold for around 51.00 cents, same terms as above. 
..
A light volume of CCC-loan equities traded for -0.70 to 4.50 cents. 

West Texas 
..
Mixed-lots containing a moderate volume of mostly color 42 and better, leaf 4-6, staple 32-37, 
mike 32-52, strength 26-31, and uniformity 77-83 sold for around 53.75 cents per pound, FOB car/truck 
(compression charges not paid).   
..
A light volume of mostly color 43 and 44, leaf 4 and 5, staple 33 and longer, mike averaging 40.5, 
strength averaging 29.3, and uniformity averaging 78.9 sold for around 41.50 cents, same terms as above.  


Western Markets Regional Summary  


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average local spot 
prices were higher.  ICE December futures remained in the low 60s and producers were not 
willing to price new-crop cotton at this time.  No forward contracting or domestic mill 
activity was reported. Foreign mill inquiries were light.   
     
Daytime high temperatures were in the high 100s in Arizona.  Partly cloudy and humid conditions 
existed, but no monsoon activity was reported.  This is the second latest start to the monsoon 
season on record for Arizona.  Heat stress was a main concern for the crop, as nighttime temperatures 
were in the 80s and 90s.  Boll-setting progressed in Yuma.  The central Arizona crop reached peak bloom.  
Insect pressure was light.  Local experts indicated the crop was behind, and has the potential to 
be average yielding.  Temperatures in New Mexico and El Paso, TX dropped into the high 80s to l
ow 90s as monsoon moisture entered the area late in the period.  The dryland stands struggled with 
a lack of moisture in El Paso.  In New Mexico, the National Agricultural Statistics Service’s Crop 
Progress report released on July 22, rated the crop mostly fair-to-good. Boll-setting was at 3 percent, 
trailing 26 points behind the five-year average.      
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive. Supplies and demand were light.    Average local spot prices 
were higher.  No forward contracting was reported as ICE December futures remained in the low 60s.  
No domestic mill activity was reported.   Foreign mill inquiries were light.    
     
A ridge of high pressure entered the region bringing 100+ degree temperatures throughout the reporting 
period. The crop made good progress.  Blooming and boll-setting advanced.  Producers irrigated the 
crop to minimize heat stress.    
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies were moderate.  Demand was light. Average local spot 
prices were steady.  No forward contracting or domestic mill activity was reported.  Foreign mill 
inquiries were light.  According to the Foreign Agricultural Service Export Sales report for week 
ending July 18, around 722,800 bales of 2018-crop AP were committed.  Cancellations amounted to 
9,000 in the past two weeks.  Sales for marketing year 2019 were reported at 63,700 bales.   
     
Mostly hot, dry weather dominated the weather pattern for most of the Far West. A ridge of high 
pressure raised temperatures into the mid-to-high 100s.  Temperatures in New Mexico and El Paso, TX 
dropped into the high 80s to low 90s as monsoon moisture entered the area late in the period.  The 
moisture is welcomed. Blooming and boll development advanced.  Scattered showers were received in 
Safford, AZ, New Mexico, and El Paso, TX.   

Trading 
 
Desert Southwest 
..
No trading activity was reported. 

San Joaquin Valley 
..
No trading activity was reported. 

American Pima 
..
No trading activity was reported. 


Market Facilitation Program 
 
Agriculture Secretary Sonny Perdue announced May 23, 2019 that USDA would again provide 
aid to assist farmers hurt by trade disruptions prompted by unjustified foreign retaliatory 
tariffs on their products through MFP. President Trump authorized USDA to provide up to 
$14.5 billion in direct payments through MFP for 2019 to assist impacted producers, which is in line                         
with the estimated impacts of the retaliatory tariffs on – and non-tariff barriers to exports of 
– U.S. agricultural goods. Sign-up for the program begins Monday, July 29 and ends 
December 6, 2019.  For more information go to https://www.farmers.gov/manage/mfp.  




 

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