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 (2019-09-06)

USDA U.S. Department of Agriculture - September 6, 2019


Mp_cn812 
September 6, 2019 
Weekly Cotton Market Review
 

Spot quotations averaged 92 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 54.61 
cents per pound for the week ending Thursday, September 5, 2019. The 
weekly average was up from 53.69 last week, but down from 78.33 cents 
reported the corresponding period a year ago. Daily average quotations 
ranged from a low of 54.10 cents Tuesday, September 3 to a high of 
54.95 cents Thursday, September 5. Spot transactions reported in the 
Daily Spot Cotton Quotations for the week ended September 5 totaled 9,526 
bales. This compares to 10,167 reported last week and 645 spot transactions 
reported the corresponding week a year ago. Total spot transactions for the 
season were 38,445 bales compared to 11,911 bales the corresponding week 
a year ago. The ICE October settlement price ended the week at 59.16 cents, 
compared to 58.88 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. 
     
A mix of clear to cloudy conditions prevailed over most of the lower 
Southeastern region during the period.  Daytime high temperatures varied 
from the upper 80s to the upper 90s.  Scattered thundershowers brought around 
one-quarter of an inch to one-half of an inch of moisture to areas throughout 
Alabama, the Florida Panhandle, and south Georgia over the weekend.  The outer 
rain bands of Hurricane Dorian pelted coastal Georgia with tropical storm 
force winds and moderate rainfall mid-week.  Rainfall totals in coastal Georgia 
and low country areas measured 2 to 4 inches.  Strong wind gusts toppled 
trees and thousands were without power.  The storm blew around plants in 
fields located along coastal Georgia.  The hurricane became a major Category 
3 storm as it drifted north-northeast towards the coastal Carolinas late in 
the period.  Defoliation was  underway in the earliest-planted fields and harvesting 
has begun on a limited basis.  Some gins plan to begin operations in the next 
week or two.  According to the National Agricultural Statistics Service’s (NASS) 
Crop Progress report released September 3, cotton bolls opening advanced to 48 
percent in Alabama and 42 percent in Georgia. 
     
Mostly fair to cloudy conditions dominated the weather pattern across most of 
the upper Southeastern region during the period.  Daytime high temperatures were 
in the upper 80s to low 90s.  Scattered thunderstorms brought around one-half 
of an inch to one inch of moisture to much of the eastern Carolinas over the 
weekend.  Late in the week, Hurricane Dorian battered the coastal Carolinas as 
it continued to drift northeastward along the Atlantic Coast.  Heavy rainfall 
and tropical storm force winds accompanied the storm and caused storm surge 
flooding in areas of coastal South Carolina.  The area received 3 to 5 inches 
of moisture by Thursday morning, with an additional 3 to 5 inches forecast by 
the end of the period.  Numerous tornado warnings were issued along coastal 
areas with several reports of tornados touching down.  Strong wind gusts toppled 
trees and local energy companies reported hundreds of thousands remained without 
power.  Plants were blown around in fields located along coastal areas.  The 
crop made good progress and bolls were cracking open.  Early in the period, 
producers scouted later planted fields that remained susceptible to pests and 
made treatments as needed.  Defoliation should begin soon in some of the 
earliest-planted fields.  According to NASS, cotton bolls opening had reached 
40 percent in South Carolina, 28 in North Carolina, and 23 percent in Virginia.  
 
Textile Mill 

Inquiries from domestic mill buyers were light.  No sales were reported.  
Most mills have covered their raw cotton needs through fourth quarter 2019.  
Demand for open-end and ring-spun yarn was moderate.   
     
Demand through export channels was moderate.  Representatives for mills in 
India inquired for a moderate volume of USDA Green Card Class, color 31, leaf 3, 
and staple 36 for January/February 2020 shipment.  Columbian mill buyers also 
inquired for a light volume of color 42 and 51, leaf 5 and better, and staple 34 
and longer for nearby shipment.  No sales were reported.     

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 slow.  No forward contracting was reported.  Producers who have 
not marketed their 2018-crop were faced with the expense of forfeiting it 
to the CCC-loan. 

Clear skies and hot temperatures characterized the weather pattern during the 
week.  Daytime highs were in the 90s and overnight lows were in the 70s.  
No rainfall was recorded in the Memphis territory.  The crop made normal 
progress under good conditions.  Insect pressure was mostly light and easily 
controlled in cases where producers decided to apply late-season crop protection 
measures.  According to the National Agricultural Statistics Service’s (NASS) 
Crop Progress report released September 3, boll opening advanced to 42 percent 
in Arkansas, 20 in Missouri, and 13 percent in Tennessee.  All of these figures 
were ahead of the five-year average in Arkansas, but lagged behind in Missouri 
and Tennessee. NASS continued to rate the crop condition mostly good-to-excellent 
in Arkansas and Tennessee, and fair-to-good in Missouri.  Defoliation was expected 
to get underway on early-planted fields within a week.  Producers continued 
to prepare harvest equipment. 
 
South 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. No forward contracting was reported as cotton prices remained low. 
Producers who waited for higher prices for their 2018-crop were faced with the 
expense of forfeiting it to the CCC-loan. 

Very hot daytime temperatures continued to dominate the weather pattern.  
Daytime highs were in the upper 90s, with the heat index well over 100.  
Temperatures over 100 degrees were predicted for the week ahead, with little 
to no prospect for any rain in the week to come.  Early morning lows were in 
the upper 70s.  Defoliation was underway on a limited basis, but over a widespread 
area.  Fields will be harvested as soon as they are ready after defoliation. 
The hot, clear weather conditions were ideal for fieldwork.  Producers and ginners 
continued to prepare personnel and equipment for the rapidly approaching harvest. 
According to the National Agricultural Statistics Service’s (NASS) Crop Progress 
report released September 3, boll opening reached 53 percent in Louisiana and 29 
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 moderate volume of CCC-loan equities traded for 54.75 to 56.00 cents per pound. 

South Delta 
..
No trading activity was reported.  


Southwestern Markets Regional Summary      .


East Texas 

Spot cotton trading was moderate.  Supplies and producer offerings were 
heavy.  Demand was light.  Average local spot prices were higher.  
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 Indonesia, Turkey, and Vietnam.   
     
In the Rio Grande Valley, harvesting was around 90 percent completed ahead 
of the three days of rainfall brought by Tropical Storm Fernand.  Some areas 
received up to 6 inches of rain and experienced field flooding.  Modules were 
in the fields waiting for transportation to the gin yards.  Producers took 
extra measures to protect regular modules by knocking the rain water off the 
covers until fields firmed enough to support module trucks.  Ginning continued 
uninterrupted.  Defoliants and boll openers were applied in the Blackland Prairies. 
A few producers initiated stripper harvesting.  A couple of gins were expected to 
offer ginning services next week.  In Kansas, final irrigation was applied and 
the wells were shut down.  The irrigated crop continued to be a week late.  
The dryland crop had reached cutout.  Gin repairs were underway, mostly to 
increase capacity.  In Oklahoma, approximately 80 percent of the dryland and 
irrigated crop had reached maturity, according to local expert reports.  The 
intense heat during July and August accelerated maturity.   Irrigation water 
will be applied through September 10 to help bolls to fill.  Producers continued 
to monitor for aphids and spider mites.  Stinkbug treatments were applied in localized areas.   
 
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 active. 
Foreign inquiries were moderate for new-crop.  Inquiries were best from Indonesia, 
Turkey, and Vietnam. 
     
Hot, sunny conditions prevailed with daytime temperature highs in the mid-90s and 
overnight lows in the mid-60s.   Crop progress was dependent on the locations of 
spotty rainfall received in recent weeks.  Dryland and limited irrigated fields that 
did not receive additional rainfall, lost vigor and gave way to heat stress when 
water demands were not met.  Yields declined daily, according to industry experts.   
Harvesting is expected to begin in two to three weeks for counties south of Lubbock.  
Industry meetings and events were held during the Celebrate Agriculture week that 
ended with the Texas Tech football game.              

Trading 
 
East Texas 
..
In Texas, a heavy volume of new-crop mostly color 21 and 31, leaf 3 and 4, staple 34, 
mike 36-49, strength 26-34, and uniformity 78-82 sold for around 56.25 cents per pound, 
FOB warehouse (compression charges not paid). 
..
A heavy volume of new-crop mostly color 21 and 31, leaf 3 and 4, staple 34, mike 42-53, 
strength 26-32, and uniformity 78-83 sold for around 55.50 cents, same terms as above.  
..
A mixed lot containing a moderate volume of mostly color 32 and better, leaf 3 and 4, staple 
33, mike 37-52, strength 24-34, and uniformity 77-82 sold for around 52.50 cents, same terms as above.  
..
A heavy volume of CCC-loan equities traded for 44.00 to 59.50 cents. 

West Texas 
..
A light volume of mostly color 22, leaf 2, staple 33 and 34, mike averaging 36.7, 
strength averaging 28.3, and uniformity averaging 77.6 sold for around 52.00 cents 
per pound, FOB car/truck (compression charges not paid).   
..
A mixed lot containing a moderate volume of mostly color 42 and better, leaf 5 and 6, 
staple 36 and 37, mike 36-42, strength 27-30, uniformity 80-82, and 50 percent 
extraneous matter sold for around 47.00 cents, same terms as above.  
..
A mixed lot containing a light volume of mostly color 43, leaf 6, staple 38, mike 
averaging 36.2, strength averaging 30.1, uniformity averaging 80.6, and 100 percent 
extraneous matter sold for around 35.00 cents, same terms as above.  
..
A heavy volume of CCC-loan equities traded for 49.75 to 54.50 cents. 


Western Markets Regional Summary 


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.    
Average local spot prices were higher.  No forward contracting or domestic 
mill activity was reported.  Foreign mill inquiries were light.   
     
Triple-digit temperatures continued in Arizona.  No rainfall was recorded in 
the period.  Strong winds and cloudy conditions were prevalent during the week.  
Harvesting gained momentum in Yuma.  Modules were trucked to the gin yard and 
ginning began mid-week.   The first new-crop cotton samples were in route to 
the Visalia Classing Office for grading on Friday, September 6.  The central 
Arizona crop advanced to cut-out stage.  The Safford Valley crop made good progress.  
Approximately one-half of an inch of rainfall was received mid-week.    
Temperatures were in the high 90s in New Mexico and El Paso, TX.  No rainfall was 
recorded in the period.  As the weather continues to provide good heat; the crop 
progressed towards cut-out.  Producers were hopeful for average yields.     
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.    
Average local spot prices were higher.  No forward contracting or domestic 
mill activity was reported.   Foreign mill inquiries were light.      
     
Hot, humid, and cloudy conditions were prevalent during the week. On the 
afternoon of Thursday, September 5, monsoon conditions produced light showers. 
The Valley has had 43 days of temperatures of 100+ degrees compared to 54 days 
of 100+ degree temperatures by this time last year.   The average number of days 
is around 36 days. The crop made good progress. Local experts were cautiously 
optimistic about yields.  Producers scouted the crop for late-season pests.   
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies of 2018-crop cotton were moderate.  
Demand was light.    Average local spot prices were higher.  No forward 
contracting or domestic mill activity was reported.    Foreign mill inquiries 
were light. A total of 154,500 bales were committed to export sales for week 
ending August 29, compared to 258,300 the previous year, according to the Foreign 
Agricultural Service.  No sales for the 2020 marketing year were reported. 
     
Temperatures were in the 90s to high 100s in the Far West. Scattered showers were 
reported in the Safford Valley of Arizona and in El Paso, TX.  Accumulations were 
under one-half of an inch of moisture.  Harvesting gained momentum in Yuma, AZ.  
Ginning will begin after all the Upland cotton  has been ginned.  Modules filled 
the gin yard.  The San Joaquin Valley crop made good progress.  Local experts 
were cautiously optimistic about yields.  Producers scouted the crop for late-season pests.   

Trading 
 
Desert Southwest 
..
No trading activity was reported. 

San Joaquin Valley 
..
No trading activity was reported. 

American Pima 
..
No trading activity was reported. 











 





 


Delivery Points 
  
Stocks as of  
9-5-2019 
  
Awaiting Review 
   
Non-Rain 
Grown Cotton 
 
Dallas/FT. Worth, TX 
 8,133 
 0 
 0 
 
Galveston, TX 
 200 
 0 
 0 
 
Greenville, SC 
 1,400 
 0 
 0 
 
Houston, TX 
 155 
 0 
 0 
 
Memphis, TN 
 2,914 
 0 
 0 
 
Total 
 12,802 
 0 
 0 
 

Number of Bales in Certificated Stocks 





 




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