Sections
Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Cattle - Hogs / Livestock 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 (2020-03-06)

USDA U.S. Department of Agriculture - March 6, 2020

Weekly Cotton Market Review
Vol. 101 No. 31 
March 6, 2020 


Spot quotations averaged 331 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 57.53 
cents per pound for the week ending Thursday, March 5, 2020. The weekly average was 
down from 60.84 last week and 68.17 cents reported the corresponding period a year 
ago. Daily average quotations ranged from a low of 56.17 cents Friday, February 28 to a 
high of 58.17 cents Thursday, March 5. Spot transactions reported in the Daily Spot 
Cotton Quotations for the week ended March 5 totaled 13,164 bales. This compares to 
21,679 reported last week and 100,649 spot transactions reported the corresponding 
week a year ago. Total spot transactions for the season were 1,338,188 bales compared 
to 767,750 bales the corresponding week a year ago. The ICE May settlement price 
ended the week at 63.35 cents, compared to 62.50 cents last week. 

Southeastern Markets Regional Summary 

Danny Pino . Macon, GA . ............ . Danny.Pino@usda.gov 
 
Spot cotton trading was slow. Supplies and 
producer offerings were moderate. Demand was 
moderate. Average local spot prices were lower. 
Trading of CCC-loan equities was inactive. 

 Fair to overcast conditions prevailed across 
Alabama, the Florida Panhandle, and Georgia during 
the period. Daytime high temperatures varied from 
the upper 50s to mid-70s. Widespread 
thundershowers brought moderate-to-heavy moisture 
to areas across the lower Southeast. Much of 
Alabama and Georgia received around 4 to 5 inches 
of weekly accumulated rainfall, with heavier totals 
recorded in some locations. Much of the Florida 
Panhandle received around 1 inch of weekly 
accumulated rainfall during the period. Flood 
warnings remained in effect in portions of Alabama 
and Georgia impacted by the heavy rainfall. 
Fieldwork and outside activities remained at a 
standstill, due to wet and soggy conditions. 

 Fair to mostly cloudy conditions prevailed across 
the Carolinas and Virginia during the period. 
Daytime high temperatures varied from the low 50s to 
low 70s. Widespread thundershowers brought 
precipitation to areas across the upper Southeastern 
region throughout the week. Most of South Carolina 
received 1 to 2 inches of weekly accumulated rainfall. 
Areas throughout North Carolina and Virginia 
received from around one-quarter of an inch to 
one-half of an inch of weekly accumulated moisture. 
River flood warnings remained in effect in areas of 
the Pee Dee region of South Carolina. Fieldwork and 
outside activities remained at a standstill, due to wet 
and soggy conditions. 

Textile Mill 

Domestic mill buyers booked a moderate volume of 
2020-crop cotton, color 41, leaf 4, and staple 34-36 
for fourth quarter 2020 through fourth quarter 2021 
delivery. Mill buyers also purchased a moderate 
volume of color 41, leaf 4, and staple 35 for nearby 
fill-in needs. No additional inquiries or sales were 
reported. Demand for ring-spun and open-end 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 

• A light volume of color 51 and 61, leaf 3-5, staple 33 and 34, mike 43-49, strength 27-29 and uniformity 
79-80 sold for around 51.00 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges 
paid, 30 days free storage). 



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 continued 
lower due to escalating concern worldwide 
surrounding the COVID 19 virus. 

Mostly dry but overcast skies characterized a 
spring-like weather pattern during the week. Daytime 
temperatures were in the 50s and 60s. Overnight 
lows were in the 40s and 50s. A powerful tornado 
struck the Nashville, Tennessee area early in the 
week. Twenty-two people were reported killed and 
severe damage resulted in the path of the deadly 
storm. Rainfall accumulations of less than 1 inch of 
moisture were reported in isolated areas. River flood 
warnings issued by the National Weather Service 
remained in effect for numerous locations throughout 
the region. Fields with light-textured soils on higher 
ground benefitted from the dry weather, but those 
near any type of waterway and in low-lying areas 
remained 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. Attendance at the Mid-South 
Farm and Gin Show and agricultural outlook 
meetings was good. Cotton experts reported 
uncertainty remains high regarding cotton acreage for 
the coming season, due to inclement weather and 
market related issues. 

 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. Stock markets tumbled as a result 
of the worldwide economic slowdown surrounding 
the COVID 19 virus. 

A storm front brought more heavy rain storms to 
the region during the week. Accumulations of 4 
inches were common, with reports of up to 7 inches 
in some places. Daytime temperatures were in the 70s 
early in the week, then dropped back into the 50s and 
60s as a cold front moved through the region. Low 
temperatures were in the 40s to 50s. 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. Many people attended the Mid-South Farm 
and Gin Show and other industry meetings. 
Producers were still facing planting decisions, due to 
the wet conditions and low soil temperatures. 

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 slow. Supplies were 
moderate. 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 slow. Foreign inquiries were 
light. Interest was best from Pakistan and Taiwan. 
Concerns over the coronavirus continued to pressure 
the market and limit yarn availability. 

 In the Rio Grande Valley (RGV), planting made 
good progress with daytime temperature highs in the 
upper 70s to upper 80s. Overnight temperatures were 
in the 60s. Some stands had emerged. Producers in 
the Upper Coast began sowing activities. The Coastal 
Bend and RGV remain droughty and need moisture. 
Rainfall was received in the Blackland Prairies that 
stalled all field activities. 

 In Kansas, one gin operated and expected to 
finish mid-March. According to the National 
Agricultural Statistics Service’s Crop Progress and 
Condition report released on March 2, topsoil 
moisture was rated 15 percent short, 64 adequate, and 
16 percent surplus. Subsoil moisture was 13 percent 
short, 69 adequate, and 11 percent surplus. Producers 
were optimistic about moisture supplies. In 
Oklahoma, three gins continued to submit samples to 
the Abilene Classing Office for classification 
services. 

 West Texas 

Spot cotton trading was slow. Supplies were 
moderate. 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 inactive. Foreign 
inquiries were light. Interest was best from 
Pakistan and Taiwan. Concerns over the 
coronavirus continued to pressure the market and 
limit yarn availability. 

 At least one gin continued operating for the 
Abilene, Lamesa, and Lubbock Classing Offices. 
Widespread rainfall was received with daytime high 
temperatures in the low 40s to upper 70s. Overnight 
lows were in the 30s to low 50s. Fields were 
saturated. Some areas received up to 5 inches of 
precipitation. Planting seed was ordered. Meetings 
were attended. Several different conferences, 
meetings, and trainings were held during the period.

Trading 

East Texas 

• In Kansas, a moderate volume of mostly color 23 and better, leaf 2 and 3, staple 37 and longer, mike 31-37, 
strength 28-32, and uniformity 78-81 sold for around 50.75 cents, FOB car/truck (compression charges not 
paid). 
• In Oklahoma, a mixed lot containing a heavy volume of mostly color 32 and better, leaf 3 and 4, staple 
35-37, mike 34-53, strength 26-37, uniformity 79-81, and 25 percent extraneous matter sold for around 
58.50 cents, same terms as above. 
• A light volume of 2018 CCC-loan equities traded for -1.00 to -1.75 cents. 

West Texas 

• A heavy volume of 2018-crop cotton mostly color 31 and better, leaf 2 and 3, staple 36 and longer, mike 
35-49, strength 28-34, and uniformity 78-83 sold for around 59.00 cents per pound, FOB car/truck 
(compression charges not paid). 
• A moderate volume of mostly color 32 and better, leaf 3 and better, staple 35, mike averaging 48.2, 
strength averaging 31.2, and uniformity averaging 80.5 sold for around 55.00 cents, same terms as above. 
• A mixed lot containing a moderate volume of mostly color 22 and 32, leaf 3 and better, staple 36, mike 
43-49, strength averaging 31.2, and uniformity averaging 80.8 sold for around 54.50 cents, same terms as 
above. 



 Western Markets Regional Summary 

Maria Townsend . Visalia, CA . ............ . Maria.Townsend@usda.gov 

 Desert Southwest (DSW) 

Spot cotton trading was inactive. Supplies were 
moderate. Producer offerings and demand were light. 
Average local spot prices were lower. Producers 
showed no interest in new crop contracting as ICE 
December futures trended in the low 60.00 cents 
range. No domestic mill activity was reported. 
Foreign mill inquiries were light. 

 Above average temperatures continued in 
Arizona. Temperatures were in high 70s to mid-80s. 
Ginning was completed. Planting made good 
progress in Yuma, Arizona. Approximately 50 
percent of the crop was planted. New Mexico and El 
Paso, Texas daytime temperatures were in the low 
70s, but dropped into the high 50s to low 60s late in 
the period. No rainfall was recorded in the DSW. 

San Joaquin Valley (SJV) 

Spot cotton trading was inactive. Supplies were 
moderate. Demand was light. Average local spot 
prices were lower. Producers showed no interest in 
new crop contracting as ICE December futures 
trended in the low 60.00 cents range. No domestic 
mill activity was reported. Foreign mill inquiries 
were light. Shippers reported Asia mill contacts 
indicated the coronavirus had reached its peak. Mills 
were gradually coming back online at about 30 to 50 
percent. 

 Above average temperatures continued. 
Temperatures were in the high 70s to low 80s. 
February 2020 is one of the driest months on record 
for California. Everyone is praying for a March 
miracle. Cotton-growing counties are rated 
abnormally dry to moderate drought status, according 
to the U.S. Drought Monitor. As of March 4, the 
statewide snowpack water content was 39 percent of 
the April 1 average compared to 152 percent last 
year. More rain and snow are needed to boost water 
allocations to growers. 

American Pima (AP) 

Spot cotton trading was inactive. Supplies of 
2019-crop cotton were moderate. Demand was light. 
Average local spot prices were steady. Producers 
showed no interest in new crop contracting. No 
domestic mill activity was reported. Foreign mill 
inquiries were light. Shipping of 2019-crop was 
active. Interest was best from China, India, and 
Vietnam for new crop cotton. Shippers reported Asia 
mill contacts indicated the coronavirus had reached 
its peak. Mills were gradually coming back online at 
about 30 to 50 percent. 

 Temperatures continued above average in the far 
west. Daytime highs were in the 70s to 80s. No 
moisture was recorded in the period. February 2020 
is one of the driest months on record for California. 
Everyone is praying for a March miracle. More rain 
and snow are needed to boost water allocations to 
growers. Ginning continued in the SJV. 

Trading 

Desert Southwest 

• No trading activity was reported. 

San Joaquin Valley 

• No trading activity was reported. 

 American Pima 

• No trading activity was reported. 



Forward Contracting 


Forward contracting of 2020-crop cotton. United States upland cotton growers had forward contracted 
about 647 acres of the 2020 crop by February 29. This compares with 45,062 acres booked by the end of 
February last season. In the southeastern states, around 647 acres were booked. Growers in the south central, 
southwestern, and western states had no acres under contract. These estimates were based on informal 
surveys made by the USDA, Agricultural Marketing Service’s Cotton Program. 

 
USDA ANNOUNCES SPECIAL IMPORT QUOTA #20 

FOR UPLAND COTTON 

March 5, 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 12, 2020, allowing importation of 11,243,064 kilograms (51,638 bales) of upland cotton.
Quota number 20 will be established as of March 12, 2020 and will apply to upland cotton purchased not later than June 9, 2020 and entered into the U.S. not later than September 7, 2020. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period November 2019 through January 2020, 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.

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