USDA U.S. Department of Agriculture - February 28, 2020
Vol. 101 No. 30
February 28, 2020
Weekly Cotton Market Review
Spot quotations averaged 281 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 60.84 cents per pound
for the week ending Thursday, February 27, 2020.
The weekly average was down from 63.65 last week
and 67.00 cents reported the corresponding period a
year ago. Daily average quotations ranged from a high
of 63.68 cents Friday, February 21 to a low of 57.18
cents Thursday, February 27. Spot transactions reported
in the Daily Spot Cotton Quotations for the week ended
February 27 totaled 21,679 bales. This compares to 31,723
reported last week and 66,537 spot transactions reported
the corresponding week a year ago. Total spot transactions
for the season were 1,325,024 bales compared to 667,101
bales the corresponding week a year ago. The ICE May
settlement price ended the week at 62.50 cents, compared
to 69.37 cents last week.
Southeastern Markets Regional Summary
Danny Pino . Macon, GA . ......... . Danny.Pino@usda.gov
Spot cotton trading was inactive. Supplies were moderate.
Demand was moderate. Producer offerings were moderate.
Average local spot prices were lower. Trading of
CCC-loan equities was inactive.
Fair to cloudy conditions prevailed across the lower
southeast region during the period. Daytime high
temperatures varied from the mid-40s to low 70s.
Early in the week, intermittent widespread showers
brought moisture across areas throughout Alabama,
the Florida Panhandle, and Georgia. Day-to-day
accumulated rainfall totals measured from one to
two inches of precipitation. River flood warnings
remained in effect in south Alabama and south Georgia.
Fieldwork and outside activities remained delayed due
to saturated soils. Ginning was essentially completed
for the season; but a few of gins remained on gin days
as they waited for the last modules to arrive on gin
yards. The Macon Classing Office continued to process
the last samples that trickled into the classing office.
A mix of clear to cloudy conditions were observed across
the upper southeast region during the period. Daytime high
conditions varied from the mid-30s to upper 60s throughout
the week. Weekly accumulated rainfall totals measured from
one to two inches in areas throughout South Carolina and
eastern North Carolina. Lesser accumulations of one-quarter
to one-half of an inch were received in other areas of
North Carolina and Virginia. River flood warnings remained
in effect in areas of the upper southeast region throughout
the weekend; minor flooding was reported in some low-lying
areas. Fieldwork and outside activities remained at a
standstill due to wet conditions. Ginning was completed
for the season.
Textile Mill
Domestic mill buyers booked a moderate volume of 2020-crop
cotton, color 41, leaf 4, and staple 34 and 36 for November
through December 2021 delivery. Mill buyers also purchased a
moderate volume of color 41, leaf 4, and staple 35 for April
through July delivery. No additional inquiries or sales were
reported. Demand for ring-spun and open-end yarn was moderate.
Demand through export channels was moderate. Pakistani mill
buyers purchased a moderate volume of mixed lot recaps
containing color 51 and better style cotton. No additional
sales were reported. Domestic cotton exporters reported
backlogs at ports and delays at foreign mills in China due
to lack of workers available to unload containers and
receive shipments due to the Coronavirus outbreak.
Trading
• No trading activity was reported.
South Central Markets Regional Summary
Jeff Carnahan . Memphis, TN . ...... Jeff.Carnahan@usda.gov
North Delta
Spot cotton trading was inactive. Supplies of
available cotton were moderate. Demand was light.
Average local spot prices were lower. Trading of
CCC-loan equities was inactive. No forward contracting
was reported. Cotton prices tumbled due to concern
surrounding the Covid 19 virus and the economic
slowdown it is causing around the world.
Overcast skies with light, but frequent rain showers
characterized a typical winter weather pattern early
the week. Daytime temperatures were in the 40s and
50s. Overnight lows dropped into the 20s late week
as another cold front moved through the region.
Northern areas reported a wintry mix of rain and
sleet; accumulations of less than 1 inch of moisture
were widespread. River flood warnings issued by the
National Weather Service remained in effect for
numerous locations throughout the region. Bottomland
fields near any type of waterway were flooded.
Saturated fields and standing water prevented any
type of outdoor activity in many places. Ginning
was complete in all areas, with one or two exceptions.
Producers and other interested parties made plans to
attend regional industry meetings, notably the
Mid-South Farm and Gin Show. Local experts reported
that some uncertainty regarding cotton acreage for
the coming season has dampened previous expectations.
Some acreage reductions could be seen, particularly on
a farm-by-farm basis.
South Delta
Spot cotton trading was inactive. Supplies of
available cotton were moderate. Demand was light.
Average local spot prices were lower. Trading of
CCC-loan equities was inactive. No forward
contracting was reported. Cotton was being delivered
to fulfill contracts. Cotton prices tumbled
as a result of the worldwide economic slowdown
surrounding the Covid 19 virus.
More heavy rain showers exacerbated flood conditions
during the week. Daytime temperatures were in the
50s and 60s as another cold front moved through the
region. Low temperatures were in the 30s and 40s.
Most areas reported at least 2 inches of rain, with
some reports of up to 3 inches. The National
Weather Service maintained multiple river flood warnings
throughout the region due to the accumulated precipitation
in recent weeks. Outdoor activities were at a standstill
due to saturated soils and standing water in low-lying
fields. Residents in Louisiana and Mississippi were
dealing with the effects of flooded homes as high water
slowly receded. Producers and other interested parties
attended the Louisiana Cotton and Grain Producers annual
meeting in Monroe, Louisiana.
Many people made plans to attend the Mid-South Farm and
Gin Show.
Trading
North Delta
• No trading activity was reported.
South Delta
• No trading activity was reported.
Southwestern Markets Regional Summary
Jane Byers-Angle . Lubbock, TX . .......Jane.Byers-Angle@usda.gov
East Texas
Spot cotton trading was moderate. Supplies were moderate.
Producer offerings were moderate. Demand was good. Average
local spot prices were lower. Producer interest in forward
contracting was moderate. Trading of CCC-loan equities was
active. Foreign inquiries were light. Interest was best from
Bangladesh, India, and Pakistan. Concerns over the Coronavirus
continued to pressure the market and limit yarn availability.
In the Rio Grande Valley, planting was underway with daytime
temperature highs in the mid-60s to mid-80s. Overnight
temperatures were in the low 30s to upper 60s. Some stands
had emerged. Lots of fields were pre-watered ahead of planting.
Gusty winds dried fields and rainfall would be beneficial. In
the Upper Coast and Coastal Bend, fields were prepped ahead
of cotton planting. Rain continued intermittently in the
Blackland Prairies and fieldwork was slow. Some fields
remained too soggy to support heavy equipment. According to
the National Agricultural Statistics Service’s (NASS) Crop
Progress and Conditions report released on February 24,
subsoil moisture was rated 45 percent adequate and 54
percent surplus. Producers prepped planting equipment and
ordered seed. Herbicide and fertilizer had been applied to
some fields. Kansas ginning continued uninterrupted as
the season drew to an end. A cold front brought snow and
around one inch of rain that slowed all field work.
Attendance was good at area meetings. In Oklahoma,
daytime high temperatures were in the low 50s to 60s and
overnight lows were in the low 20s to upper 40s. Soil
moisture conditions were 25 percent short, 48 adequate,
and 21 surplus, according to NASS.
West Texas
Spot cotton trading was moderate. Supplies were moderate.
Producer offerings were moderate. Demand was moderate.
Average local spot prices were lower. Producer interest
in forward contracting was light. Trading of CCC-loan
equities was active. Foreign inquiries were light.
Interest was best from Bangladesh, India, and Pakistan.
Concerns over the Coronavirus continued to pressure the
market and limit yarn availability.
Light rainfall was received in isolated areas early in
the period with daytime high temperatures in the low 40s
to upper 60s. Overnight lows were in the 20s to low 40s.
Some areas in the Panhandle received a dusting of snow.
Producers were encouraged with the amount of ground moisture
ahead of planting. Subsoil moisture condition was rated
mostly short to adequate in the Northern & Southern High
Plains, and in the Northern & Southern Low Plains,
according to the National Agricultural Statistics Service’s
Crop Progress and Condition report, released on February 24.
Planting seed was ordered. Meetings were attended.
Trading
East Texas
• In Kansas, a moderate volume of mostly color 22, leaf 2 and
3, staple 36 and 37, mike averaging 38.8, strength averaging
31.2, and uniformity averaging 80.0 sold for around 61.00 cents,
FOB car/truck (compression charges not paid).
• In Oklahoma, lots containing a heavy volume of mostly color 31
and better, leaf 2 and 3, staple 38 and 39, mike 48-51, strength
32-35, and uniformity 80-82 sold for around 64.00 cents, same
terms as above.
• A heavy volume of 2018 CCC-loan equities traded for -3.00 to
-6.00 cents.
West Texas
• A mixed lot containing a moderate volume of mostly color 22
and better, leaf 3 and better, staple 33, mike 35-50, strength
26-31, and uniformity 76-81 sold for around 57.25 cents per
pound, FOB car/truck (compression charges not paid).
• A light volume of color 32, leaf 3 and 4, staple 34 and 35,
mike averaging 49.9, strength averaging 32.2, uniformity 80-83,
and 50 percent extraneous matter sold for around 55.75 cents,
same terms as above.
• A mixed lot containing a moderate volume of mostly color 33
and better, leaf 3 and 4, staple 32 and longer, mike 46-54,
strength 28-33, uniformity 78-83, and 50 percent extraneous
matter sold for around 52.75 cents, same terms as above.
• A heavy volume of 2018 CCC-loan equities traded for -0.75 to
-3.25 cents.
Western Markets Regional Summary
Maria Townsend . Visalia, CA . ..... Maria.Townsend@usda.gov
Desert Southwest (DSW)
Spot cotton trading was active. Supplies were moderate.
Producer offerings were moderate. Demand was light.
Average local spot prices were lower. No forward
contracting or domestic mill activity was reported.
Foreign mill inquiries were light. Shippers reported
delays and cancellations to foreign destinations. Some
foreign port openings were limited, due to labor shortages
created by the Coronavirus and quarantines associated with
the virus.
Sunny and warm conditions continued in Arizona. Temperatures
were in high 60s to high 70s. Nearly 1 inch of rain was
received early in the reporting period. Ginning continued in
central Arizona. Planting gained momentum in Yuma, Arizona.
Daytime high temperatures were in the high 50s to high 60s in
New Mexico and El Paso, Texas. No rainfall was recorded in the
period. Fieldwork was active.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies were moderate.
Demand was light. Average local spot prices were lower.
No forward contracting or domestic mill activity was reported.
Foreign mill inquiries were light. Shippers reported delays
and cancellations to foreign destinations. Some foreign port
openings were limited, due to labor shortages created by the
Coronavirus and quarantines associated with the virus.
Sunny and mild conditions continued with temperatures
in the 70s. Daytime high temperatures reached 80 degrees
late in the period. Fieldwork was active. Ginning continued.
On February 26, the U.S. Bureau of Reclamation announced a
15 percent water allocation from the Central Valley Project
to west side growers. Reservoir storage is still above
average, due to a very wet winter in 2019; however,
rainfall and snowpack are below average so far in 2020. The
overall Sierra Nevada Mountain water content stands at 11.5
inches as of February 26, according to the California Department
of Water Resources. More rain and snow is needed to boost water
allocations to growers.
American Pima (AP)
Spot cotton trading was slow. Supplies of 2018-crop
cotton were light. Supplies of 2019-crop cotton were
heavy. Demand was light. Average local spot prices
were steady. Producers delivered 2019-crop cotton
into the CCC-loan program or into merchant marketing
pools. No forward contracting or domestic mill activity
was reported. Foreign mill inquiries were light.
Shippers reported delays and cancellations to foreign
destinations. Some foreign port openings were limited,
due to labor shortages created by the Coronavirus and
quarantines associated with the virus. Shippers also
reported a limited number of empty containers returning
from foreign ports.
Temperatures were above average
in the far west. Daytime highs were in the high 60s to
high 70s. Cotton-growing areas of western and central
Arizona received around 1 inch of rainfall early in the
period. In the San Joaquin Valley (SJV) of California,
temperatures reached 80 degrees late in the period. No
rainfall was recorded in the SJV. On February 26, the
U.S. Bureau of Reclamation announced a 15 percent water
allocation from the Central Valley Project to west side
growers. Reservoir storage is still above average,
due to a very wet winter in 2019; however, rainfall and
snowpack are below average so far in 2020. The overall
Sierra Nevada Mountain water content stands at 11.5
inches as of February 26, according to the California
Department of Water Resources. Ginning continued in
the SJV. Planting gained momentum in Yuma, Arizona.
Trading
Desert Southwest
• A light volume of color 11 and 21, leaf mostly 2 and better,
staple 37-39 sold for around 100 points off ICE May futures,
uncompressed, FOB warehouse.
• A moderate volume of color mostly 31 and better, leaf 2 and
better, staple 37 and longer, mike 37-52, strength 31-33, and
uniformity 79-72 sold for 400 to 425 points off ICE May futures,
same terms as above.
• Mixed lots of a moderate volume of mostly color 21, 32, and 33,
leaf 4 and better, staple 35-37, mike averaging 36.4, strength
averaging 30.8, and uniformity averaging 80.0 sold for around 900
points off ICE May futures, same terms as above.
San Joaquin Valley
• No trading activity was reported.
American Pima
• A moderate volume of color 1 and 2, leaf 1 and 2, and staple 48
and 50 sold for around 105.00 cents per pound, uncompressed, FOB
warehouse.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #19
FOR UPLAND COTTON
February 27, 2020
The Department of Agriculture's Commodity Credit Corporation announced
a special import quota for upland cotton that permits importation of a
quantity of upland cotton equal to one week’s domestic mill use. The
quota will be established on March 5, 2020, allowing importation of
12,096,232 kilograms (55,557 bales) of upland cotton.
Quota number 19will be established as of February 27, 2020 and will
apply to upland cotton purchased not later than June 2, 2020
and entered into the U.S. not later than August 31,2020. The quota
is equivalent to one week's consumption of cotton by domestic mills
at the seasonally-adjusted average rate for the period October 2019
through December 2019, the most recent three months for
which data are available.
Future quotas, in addition to the quantity announced, will be
established if price conditions warrant.
