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USDA - AMS: Weekly Cotton Market Review, narrative (2019-10-04)

USDA U.S. Department of Agriculture - October 4, 2019

   

Mp_cn812 
October 4, 2019 
Weekly Cotton Market Review  
 

Average spot quotations were 49 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 58.43 cents per pound for the week ending Thursday, October 3, 2019. 
The weekly average was up from 57.94 last week, but down from 72.66 cents reported 
the corresponding period a year ago. Daily average quotations ranged from a low of 
58.26 cents Monday, September 30 to a high of 58.74 cents Thursday, October 3. Spot 
transactions reported in the Daily Spot Cotton Quotations for the week ended 
October 3 totaled 15,300 bales. This compares to 9,447 reported last week and 3,510 
spot transactions reported the corresponding week a year ago. Total spot transactions 
for the season were 116,493 bales compared to 20,789 bales the corresponding week a 
year ago. The ICE December settlement price ended the week at 61.60 cents, compared to 60.28 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 firm. Trading of CCC-loan 
equities was inactive. 
     
Mostly sunny conditions prevailed over the lower Southeastern region during the 
period.  Unseasonably hot conditions dominated the weather pattern with daytime 
high temperatures in the low to upper 90s.  Light scattered moisture was received 
in isolated pockets of northeast Alabama and south Georgia during the week.  
Rainfall totals measured from trace amounts to around one-half of an inch of moisture, 
offering little relief to wilting and heat stressed plants.  Elsewhere in Alabama, 
the Florida Panhandle, and Georgia, droughty conditions expanded as the hot and dry 
pattern continued over the region and many areas experienced their warmest and driest 
September on record, according to the U.S. Drought Monitor.  Full irrigation schedules 
were maintained on later planted fields. Harvesting advanced and modules were accumulating 
in fields and on gin yards.  Defoliation expanded, but had stopped in some areas due 
to extremely dry conditions.  Producers would welcome a timely rainfall to relieve heat 
stressed plants and enhance boll development on the top of the crop.  According to the 
National Agricultural Statistics Service’s (NASS) Crop Progress report released 
September 30, harvesting advanced to 18 percent completed in Georgia and 12 percent 
completed in Alabama. 
     
A mix of sunny to cloudy conditions prevailed over the upper Southeastern region during 
the period.  Daytime high temperatures varied from the upper 80s to upper 90s throughout 
the week.  Scattered thundershowers brought very localized light precipitation to 
portions of the Carolinas and cotton growing areas of Virginia during the week.  
Precipitation totals measured from trace amounts to around one half of an inch of moisture.  
New areas of extreme drought developed in areas of South Carolina, according to the 
U.S. Drought Monitor.  Heat stressed plants wilted under the hot and dry conditions.  
Producers would welcome a soaking rainfall to invigorate plants and enhance boll 
development on the top of the crop.  Defoliation and harvesting activities were getting 
underway.  According to NASS, cotton harvested had reached 12 percent in South Carolina, 
10 in Virginia, and 5 percent in North Carolina. 
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 
for first quarter 2020.  No sales were reported.  Reports indicated 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.  Agents throughout the Far East inquired 
for any discounted styles of cotton.  No sales were reported.      

Trading 
..
A moderate volume mixed lot containing color mostly 31-51, leaf 5 and better, staple 34-37, 
mike 43-49, strength 26-28, and uniformity 79-81 sold for around 56.50 cents per pound, 
FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). 


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 firm.  Trading of CCC-loan equities was inactive.  
No forward contracting was reported. 

Clear to partly cloudy skies prevailed during the week.  Several storm cells brought up 
to 2 inches of precipitation to the northern parts of the Memphis territory, which 
provided some relief from the scorching temperatures and dusty field conditions.  Daytime 
highs were in the 90s and overnight lows were in the 70s.  Much cooler temperatures were 
in the forecast for the week ahead.  Harvesting activities were delayed in northern areas 
due to wet conditions, but advanced rapidly in most other areas.  Defoliation continued 
and stalks were shredded on harvested fields.  Receipts increased rapidly at the Dumas 
and Memphis Classing Offices.  According to the National Agricultural Statistics Service’s 
(NASS) Crop Progress report released September 30, harvesting had reached 22 percent 
completed in Arkansas, 6 in Missouri, and 12 percent in Tennessee. NASS continued to rate 
the crop condition mostly good-to-excellent in Arkansas and Tennessee, and fair-to-good in 
Missouri.  Yields ranged from 1,000 to 1,600 pounds per acre. 
 
South Delta 

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

Hot daytime temperatures dominated the weather pattern during the week.  Highs were in the 
upper 90s.  Overnight lows moderated to the upper 60s.  No rainfall was reported. Field 
activities progressed rapidly under ideal weather conditions. Producers were hoping for 
rain showers and cooler temperatures, but only a few isolated thunderstorms were in the 
forecast for the week ahead. Defoliation expanded over a widespread area.  Harvesting 
gained momentum, but a number of late-planted fields in Mississippi remained undefoliated. 
The number of gins processing cotton increased throughout the region.  According to the 
National Agricultural Statistics Service’s (NASS) Crop Progress report released 
September 30, harvesting had reached 33 percent completed in Louisiana and 23 percent 
in Mississippi.  NASS rated the crop condition mostly fair-to-good in Louisiana and 
Mississippi.  Yields ranged from 1,000 to 1,800 pounds per acre. 

Trading 
  
North Delta 
..
No trading activity was reported.  

South Delta 
..
A light volume of 2018-crop CCC-loan equities traded for around -6.50 cents per pound. 



Southwestern Markets Regional Summary      .

East Texas 

Spot cotton trading was moderate.  Supplies and producer offerings were heavy.  
Demand was moderate.  Average local spot prices were higher.  Producer interest 
in forward contracting was light.  Trading of CCC-loan equities was active. 
Foreign inquiries were light. 
     
In the Rio Grande Valley, ginning continued, but a few gins neared completion.  
Fieldwork was active in the Coastal Bend and Upper Coast, but intermittently 
delayed from light rain showers.  Final harvesting was underway as well as 
stalk destruction.  Shiftwork continued at the gins.  In the northern Blackland 
Prairies, a dry weather pattern settled over the area and harvesting and ginning 
expanded.  Modules were transported to gin yards.  In Kansas, the crop condition 
was rated 12 percent poor, 37 fair, and 40 percent good, according to the National 
Agricultural Statistics Service’s (NASS) Crop Progress report released on September 30.  
Bolls opening was 46 percent, lagging behind last year’s 62, and the five-year 
average of  48 percent.  In Oklahoma, the condition was rated 10 percent poor, 
60 fair, and 30 percent good, according to NASS.  Bolls opening had reached 
69 percent, ahead of 59 from the previous year, and 6 percent higher than the 
five-year average.  Machinery is ready for harvesting.  Lots of acres have received 
defoliant applications, and will be ready for harvest in the next reporting period.      
      
West Texas 

Spot cotton trading was slow for the 2018-crop.  Supplies and producer offerings 
were light.  Demand was light.  Average local spot prices were firm.  Producer 
interest in forward contracting was light.  Trading of CCC-loan equities was inactive.  
Foreign inquiries were light.   
     
Rainy conditions prevailed with daytime temperatures in the mid-60s to low 90s and 
overnight lows in the 60s and 70s.  Heavy thunderstorms during the period brought up 
to 7 inches of precipitation, according to local reports.  The rainfall will be 
valuable for the 2020-crop, but comes too late to benefit the current crop.  Some 
fields received excessive hail damage and will not be harvested.  Regrowth at the top 
of plants has been reported.  Some fields have been harvested, but progress was stalled 
due to wet conditions.  Harvesting is expected to expand in the next two weeks, 
depending on the weather.  Fields have had harvest aid treatments applied in the Texas 
Panhandle and across the market area into the southern Rolling Plains.  A few gins have 
opened in each territory, and 9 gins submitted samples to be graded at the Abilene, 
Lamesa, and Lubbock Classing Offices.                

Trading 
 
East Texas 
..
In Texas, a heavy volume of new-crop mostly color 11 and 21, leaf 3 and better, 
staple 37, mike averaging 47.6, strength averaging 29.6, and uniformity averaging 80.8 
sold for around 60.00 cents per pound, FOB warehouse (compression charges not paid). 
..
A moderate volume of mostly color 31 and better, leaf 2 and 3, staple 34 and longer, 
mike averaging 45.5, strength averaging 29.3, and uniformity averaging 79.7 sold for 
around 56.25 cents, same terms as above.  
..
A mixed lot containing a moderate volume of mostly color 51 and 61, leaf 3, staple 36 
and 37, mike 43-48, strength 26-29, uniformity 78-81, and 25 percent extraneous matter 
sold for around 48.00 cents, same terms as above.  
..
A light volume of CCC-loan equities traded for -2.00 to 7.62 cents. 
 
West Texas 
..
A moderate volume of 2018-crop cotton color 42, leaf 2 and 3, staple 33, mike 50-51,  
strength averaging 30.1, uniformity averaging 80.9, and 100 percent extraneous matter 
sold for around 56.00 cents per pound, FOB car/truck (compression charges not paid).   
..
A light volume of cotton, color 31 and better, leaf 2 and 3, staple 37, mike averaging 36.0, 
strength averaging 30.0, and uniformity averaging 81.3 sold for around 52.00 cents, 
FOB warehouse (compression charges not paid). 
..
A light volume of cotton, mostly color 41, leaf 5 and 6, staple 38, mike averaging 34.1, 
strength averaging 30.6, and uniformity averaging 80.6 sold for around 50.00 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. Trading of CCC-loan equities was slow. No forward 
contracting or domestic mill activity was reported. A light volume of 2018-crop 
sales were reported. Foreign mill inquiries were best from Pakistan.    
     
Partly cloudy skies prevailed most of the period. Temperatures were in the low to 
mid-90s for most of the week.  No significant amount of precipitation was recorded 
during the period. In Central Arizona, defoliation continued and harvesting began 
on a limited scale.  Local gins received their first modules of the season. 
Ginning was expected to begin the week of October 7.  Local Safford Valley sources 
reported that water supplies have ceased and the crop was ready for defoliation, 
which will begin in the next 7 to 10 days. Ginning continued in Yuma, AZ. According 
to the National Agricultural Statistic Service’s Arizona Crop Progress report, 
41 percent of the crop was in good condition. Temperatures continued to be mild 
in New Mexico and El Paso, TX, with thunderstorms entering the territory late in the period.   
 
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.   
     
During the period, a cold front entered the area, cooling temperatures. Daytime 
temperatures were in the low to mid-70s. Defoliation activities continued.  
Gins made final repairs.  Producers prepared equipment for harvest.        
 
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.  A light 
volume of 2018-crop sales was reported.  No sales for the 2020 marketing year were reported.  
     
Temperatures ranged from the low 70s to mid-90s in the Far West.  Defoliation continued.   
The crop in the San Joaquin Valley (SJV) of California was being defoliated on a 
limited scale, and due to weak demand and low prices, there is no rush. Ginning in 
the SJV will begin around mid-October.   

Trading 
 
Desert Southwest 
..
A light volume of CCC-loan equities traded for around 0.20 cents per pound.    

San Joaquin Valley 
..
No trading activity was reported. 

American Pima 
..
No trading activity was reported. 







 


 

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