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USDA - AMS: Weekly Cotton Market Review, narrative (2019-08-30)

USDA U.S. Department of Agriculture - August 30, 2019

   
Mp_cn812 
 
 
August 30, 2019 
 
Weekly Cotton Market Review 


Spot quotations averaged 107 points 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 53.69 
cents per pound for the week ending Thursday, August 29, 2019. The 
weekly average was down from 54.76 last week and from 79.19 cents 
reported the corresponding period a year ago. Daily average quotations 
ranged from a low of 53.04 cents Tuesday, August 27 to a high of 54.67 
cents Thursday, August 29. Spot transactions reported in the Daily Spot 
Cotton Quotations for the week ended August 29 totaled 10,167 bales. 
This compares to 9,726 reported last week and 2,719 spot transactions 
reported the corresponding week a year ago. Total spot transactions for 
the season were 28,919 bales compared to 11,266 bales the corresponding 
week a year ago. The ICE October settlement price ended the week at 58.88 
cents, compared to 58.87 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 lower. Trading of CCC-loan 
equities was inactive. 
     
Hot and sunny conditions entering the period gave way to cool and overcast 
conditions over the weekend and early week as a cold front entered the lower 
Southeastern region. Seasonably hot daytime temperatures in the low 90s dipped 
into the low to mid-80s, before warming again late week.  Widespread thunderstorms 
brought moderate to heavy moisture to areas throughout Alabama, the Florida Panhandle, 
and portions of south Georgia during the period.  Precipitation totals measured 
from 2 to 4 inches in areas from the Gulf Coast to north Alabama, with heavier 
downpours observed in some areas. The moisture was beneficial to dryland acreage.  
However, boll rot was reported in many irrigated fields.  Some later planted fields 
were also treated for target spot.  Producers had begun defoliating some of the 
earliest-planted fields, but were keeping a wary eye on hurricane Dorian as it 
approaches the Atlantic Coast. Plant growth regulators were applied to some younger 
fields.  Producers continued to treat fields for stink bugs and isolated pockets 
of white flies.  Producers, ginners, and industry members attended annual state 
ginner meetings hosted by the Southeastern Cotton Ginners Association.   
Industry members reported harvesting had begun in some of the earliest-planted 
fields.  A few gins plan to begin pressing operations in the next two to three 
weeks.  According to the National Agricultural Statistics Service’s (NASS) Crop 
Progress report released August 26, cotton bolls opening advanced to 30 percent 
in Georgia and 29 percent in Alabama. 
     
Similar conditions were observed across the upper Southeastern region during 
the period. Overcast skies were observed as a cold front moved across the region, 
causing seasonably warm temperatures to dip into the mid-70s to mid-80s over the 
weekend and early week.  Sunny conditions returned late week and temperatures 
warmed into the upper 80s to low 90s.  Scattered thunderstorms brought moisture 
to isolated areas throughout the Carolinas and Virginia.  Weekly accumulated 
precipitation totals measured from one-half of an inch to one inch of moisture, 
with heavier accumulations reported in some areas.  Producers welcomed the moisture 
which helped advance the crop.  Insect pressure was generally light and easily 
controlled, and many fields were matured beyond the threat of insect damage.  
According to NASS, cotton bolls opening had reached 24 percent in South Carolina, 
15 in North Carolina, and 11 percent in Virginia.  
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 36 
for nearby delivery.  Mill buyers also inquired for a moderate volume of color 41, leaf 4, 
and staple 35 and longer for first quarter through third quarter 2020 delivery.  No sales 
were reported.  Most mills have covered their raw cotton needs through December 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.  No sales were reported.   
 
Trading 
..
No trading activity was reported. 


South  Central Markets Regional Summary 


North Delta 

Spot cotton trading was slow.  Supplies of available cotton and demand were light.  
Average local spot prices were lower.  Trading of CCC-loan equities was active.  
No forward contracting was reported.   

Most of the region continued to swelter under the hot temperatures that have prevailed 
over the past two weeks.  Daytime highs were in the mid-90s, and overnight lows were in 
the low 70s. A cold front entered the region late in the period, bringing scattered showers 
and cooler conditions.  Accumulated moisture measured less than 1 inch in the few places 
that received any rain. The crop made slow progress under good growing conditions.  The 
high temperatures experienced in recent weeks have helped push the crop to the stage 
where no further crop protection measures are necessary, except in fields that were planted 
very late.  Some fields were treated to control plant bugs and bollworms. Boll opening 
advanced slowly. Producers were hoping for clear skies and warm temperatures to help the 
crop finish and to facilitate defoliation, which was expected to begin within three weeks 
in some areas.  There was some concerns in areas where heat and high humidity have created 
conditions conducive for boll rot. According to the National Agricultural Statistics 
Service’s Crop Progress report released August 26, boll opening advanced to 18 percent in 
Arkansas, 13 in Missouri, and 8 percent in Tennessee.  All of these figures were very near 
the five-year average.  NASS rated the crop condition mostly    good-to-excellent in Arkansas 
and Tennessee, and fair-to-good in Missouri. 
 
South Delta 

Spot cotton trading was inactive.  Supplies of available cotton and demand were light.  
Average local spot prices were lower.  Trading of CCC-loan equities was inactive. No forward 
contracting was reported as cotton prices remained low. 

Hot daytime temperatures continued to dominate the weather pattern.  Daytime highs were in 
the upper 90s, with the heat index well over 100.  Hot, clear conditions were predicted for 
the week ahead.  Early morning lows were in the upper 70s.  Scattered showers brought less than 
1 inch of rain to most of the region.  Crop protection measures were no longer required in fields 
where bolls were opening, but producers continued to battle insect pests in late-planted fields.  
Defoliation was expected to begin in the next few days, with harvest scheduled to commence in 
mid-September. Producers and ginners were busy preparing, repairing, or replacing harvest equipment 
and other harvest-related machinery. According to the National Agricultural Statistics Service’s 
Crop Progress report released August 26, boll opening reached 33 percent in Louisiana and 15 
percent in Mississippi.  Both figures lagged about two weeks behind the five-year average.  
NASS rated the crop condition mostly fair-to-good in Louisiana and Mississippi. 
 
Trading 
  
North Delta 
..
A light volume of mostly color 41 and 42, leaf 4 and better, staple 37 and longer, mike 43-52, 
strength 28-32, and uniformity 80-84 traded for around 57.50 cents per pound, FOB car/truck 
(Rule 5, compression charges paid). 
..
A light volume of mostly color 42 and 52, leaf 4 and better, staple 35 and longer, mike 43-49, 
strength 26-30, and uniformity 80-83 traded for around 54.75 cents, same terms as above. 
..
A heavy volume of CCC-loan equities traded for 54.00 to 56.00 cents. 
 
South Delta 
..
No trading activity was reported.  


Southwestern Markets Regional Summary


East Texas 

Spot cotton trading was slow.  Supplies and producer offerings were moderate.  
Demand was light.  Average local spot prices were lower.  Producer interest in 
forward contracting was light.  Trading of CCC-loan equities was active.  Foreign 
inquiries were moderate for new-crop.  Inquiries were best from India, Turkey, and 
Vietnam.   
     
In the Rio Grande Valley, harvesting had almost reached the half-way mark.  Stalks 
were shredded ahead of the September 1 deadline.  Producers were discouraged with 
market prices.  Defoliation and harvesting expanded in the Upper Coast.  More gins 
began operations and were submitting samples to the Corpus Christi Classing Office for 
classification.  The Coastal Bend was approximately 80 percent harvested, and modules 
dotted the country side.  Winter Garden area producers were encouraged with expected 
irrigated yields up to four and one-half bales per acre and dryland making up to one 
and one-half bales per acre.  In the Blackland Prairies, some stands have as much as 50 
percent bolls opened and other stands are 10 days away from bolls popping open, according 
to local industry experts.  Defoliants were applied ahead of harvesting.  Equipment 
maintenance was conducted.  Cotton Blue disease was confirmed in central Texas.  Gins are 
prepared to open in early September.  Producers in Kansas and Oklahoma were encouraged as 
the crop advanced.  Recent rainfall gave stands a much needed boost.  Irrigation water was 
applied where needed.  Bolls had begun to crack open in Kansas and Oklahoma. 
    
West Texas
 
Spot cotton trading was slow.  Supplies and producer offerings were light.  Demand was 
light.  Average local spot prices were lower.  Producer interest in forward contracting 
was light.  Trading of CCC-loan equities was moderate.  Foreign inquiries were moderate 
for new-crop.  Inquiries were best from India, Pakistan, and Vietnam. 
     
Excessive heat warnings and heat advisories were issued with daytime high temperatures ranging 
from the mid-80s up to 114 degrees.  Overnight lows were in the mid-60s to mid-80s. The excessive 
temperatures stressed stands and caused fruit shed.  A cold-front brought cooler temperatures to 
some fields, and a reprieve from heat warnings and advisories overnight on the evening of August 26.  
Temperatures retreated to the mid-80s for most areas.  Irrigated fields made good progress.  Some 
wells were declining and unable to keep up with irrigation needs in counties south of Lubbock.  
Dryland fields made little progress in most locations.  Bolls on the low side of the plant were 
small, and some fields have wilted down under triple digit temperatures, according to local experts.  
Isolated storms brought precipitation to some fields during the reporting period.  Consistent 
rainfall near the New Mexico border and into the Texas Panhandle helped the dryland fields advance.  
Producers continued to scout for aphids, bollworms, and stink bugs.  Crop tours, field days, and meetings were held.     

Trading 
 
East Texas 
..
In Kansas, a mixed lot containing a light volume of mostly color 54 and better, leaf 5 and 6, 
staple 35 and 36, mike 37-42, strength 26-28, uniformity 78-81, and 100 percent extraneous 
matter sold for around 35.00 cents per pound, FOB car/truck (compression charges not paid). 
..
In Oklahoma, a light volume of mostly color 62, leaf 6 and better, staple 35 and 36, mike 40-43, 
strength 26-28, and uniformity 78-80 sold for around 52.25 cents, same terms as above.  
..
In Texas, a light volume of 2019-crop mostly color 21 and 31, leaf 1 and 2, staple 33 and 34, 
mike 46-50, strength 28-31, and uniformity 78-81 sold for around 50.00 cents per pound, 
FOB warehouse (compression charges not paid). 
..
A heavy volume of CCC-loan equities traded for 40.25 to 52.00 cents. 

West Texas 
..
A light volume of mostly color 41, leaf 5 and better, staple 37, mike 39-42, 
strength 28-31, and uniformity 79-82 sold for around 54.00 cents per pound, 
FOB car/truck (compression charges not paid).   
..
A mixed lot containing a light volume of mostly color 52 and better, leaf 6 and better, 
staple 35 and longer, mike 26-44, strength 26-31, uniformity 77-82, and 50 percent 
extraneous matter sold for around 51.50 cents, same terms as above.  
..
A light volume of CCC-loan equities traded for around 54.00 cents. 


Western Markets Regional Summary

 
Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.    
Average local spot prices were lower.  No forward contracting or domestic 
mill activity was reported.  Foreign mill inquiries were light.   
     
Temperatures were in the low to mid-100s for most of the period.  
Excessive heat warnings were issued as temperatures rose to 111 degrees 
in central Arizona mid-week.  This year has been one of the driest monsoon 
seasons on record.  Defoliation continued in Yuma, AZ.  Local sources reported 
harvesting began on a limited scale early in the period.   Early yields were promising.  
Crop progress was good in central Arizona.  Industry representatives viewed the crop 
with renewed optimism.  Temperatures were in the high 90s to low 100s in New Mexico 
and El Paso, TX.  No rainfall was recorded in the period.  Afternoon thunderstorms 
remained in the forecast.  The crop made good progress.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average 
local spot prices were lower.  No forward contracting or domestic mill activity 
was reported.   Foreign mill inquiries were light.      
     
Hot, dry temperatures continued.  Blooming and boll-setting advanced.  The crop was 
irrigated.  Overall, the crop made good progress.  Producers and industry members attended annual meetings. 
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies of 2018-crop cotton 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.     
     
Hot, dry temperatures advanced the crop in the Far West.    This year has been one of the 
driest monsoon seasons for the Desert Southwest.  Defoliation continued in Yuma, AZ.  
Local sources reported harvesting began on a limited scale early in the period.   
The San Joaquin Valley crop made good progress.  Producers irrigated and monitored for 
late season insect pests.  Producers and industry members attended annual meetings. 

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






 






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