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 (2020-06-26)

USDA U.S. Department of Agriculture - June 26, 2020

 

Mp_cn812 
June 26, 2020 
Weekly Cotton Market Review 



Average spot quotations were 73 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 56.23 cents per pound for the week ending Thursday, 
June 25, 2020. The weekly average was up from 55.50 last week, but down from 59.90 
cents reported the corresponding period a year ago. Daily average quotations ranged 
from a low of 55.86 cents Friday, June 19 to a high of 56.74 cents Monday, June 22. 
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended 
June 25 totaled 4,549 bales. This compares to 6,220 reported last week and 21,086 
spot transactions reported the corresponding week a year ago. Total spot transactions 
for the season were 1,545,920 bales compared to 1,252,055 bales the corresponding 
week a year ago. The ICE Oct settlement price ended the week at 60.39 cents, compared to 59.37 cents last week. 


Southeastern Markets Regional Summary 


Spot cotton trading was inactive. Supplies and producer offerings were moderate. 
Demand was light. Average local spot prices were higher.  Trading of CCC-loan 
equities was inactive.  No forward contracting was reported.  The COVID-19 Pandemic 
continues to negatively affect cotton demand and disrupt supply chains. 
     
The crop progressed normally as mostly fair to partly cloudy conditions dominated the 
weather pattern across the lower Southeastern region throughout the period.  Daytime 
high temperatures varied from the upper 70s to low 90s.  Widespread thundershowers 
brought moisture to areas throughout Alabama, the Florida Panhandle, and Georgia 
throughout the week. Weekly accumulated precipitation totals measured from 2 to 4 inches 
in areas throughout Alabama, with lesser accumulations of 1 to 2 inches in Georgia and 
the Florida Panhandle.  The moisture was beneficial to the crop in most areas, but 
seedling disease was reported in portions of the Florida Panhandle that has received 
excessive moisture in recent weeks. Producers applied herbicides and nitrogen as dry 
conditions allowed.  Aphids were building in some areas and plant bugs were appearing 
at treatable levels in some fields.  Local experts reported grasshopper populations were 
high in the Florida Panhandle, but had begun to decline.  According to the National 
Agricultural Statistics Service’s (NASS) Crop Progress report released June 22, cotton 
squaring had reached 39 percent completed in Georgia and 30 percent completed in Alabama. 
     
The crop advanced at a slower than normal pace as mostly fair to cloudy conditions prevailed 
across the upper Southeastern region during the period.  Daytime high temperatures were in 
the mid-80s to low 90s.  Scattered thunderstorms brought moderately heavy rainfall to areas 
throughout South Carolina and cotton growing areas of eastern North Carolina and Virginia 
throughout the week.  Weekly accumulated precipitation totals measured from one-half of an 
inch to three inches of moisture, with heavier amounts recorded in some areas.  Local experts 
reported heavy pressure from thrips in North Carolina, but many fields were past thrip 
susceptibility. In South Carolina, aphid populations were heavy in some older cotton fields.  
Wet weather helped to beat back spider mite populations.  As squaring advances, producers 
will begin scouting fields for plant bugs.  According to the NASS Crop Progress report released 
June 22, cotton squaring had reached 28 percent completed in Virginia, 20 in South Carolina, 
and 17 percent completed in North Carolina. 
 
Textile Mill 

Inquiries from domestic mill buyers were light.  No sales were reported.  The undertone 
from mill buyers remained very cautious, due to very weak end product demand and reduced 
operating schedules associated with the COVID-19 virus.  Mills continued to operate at minimal 
capacity with incremental increases as warranted by demand.  Mills continued to produce personal 
protective equipment for frontline workers and military supplies in response to the COVID-19 Pandemic. 
     
Demand through export channels was very light.  No inquiries were reported.  Demand centered 
around any discounted styles of cotton. 

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 inactive. No forward 
contracting was reported.  The COVID-19 Pandemic continues to disrupt travel, trade, and many 
normal activities. 
     
The crop progressed normally as a mix of sunny to overcast conditions was observed during 
the period.  Daytime high temperatures were in the mid-80s to mid-90s.  Overnight lows were 
in the mid-60s to low 70s. Scattered thunderstorms brought moderate precipitation to areas of 
southern Arkansas, west Tennessee, and the bootheel of Missouri over the weekend and early in 
the week.  Weekly accumulated rainfall totals measured from one-half of an inch to two inches 
of moisture, with heavier accumulations observed in some areas.  The moisture activated residual 
herbicides producers applied ahead of the rain events. Squaring was well underway in Arkansas and 
was getting underway in Tennessee and Missouri.  Insect pressure from thrips was declining and 
plant bug pressure had begun to build, but remained light in most areas.  According to the National 
Agricultural Statistics Service’s Crop Progress report released June 22, squaring had reached 49 
percent in Arkansas, 17 in Tennessee, and 4 percent in Missouri; all figures lagged behind the five-year average.    
  
South Delta 

Spot cotton trading was inactive.  Supplies of available cotton were light.  Demand was light.  
Average local spot prices were higher.  Trading of CCC-loan equities was inactive. No forward 
contracting was reported.  The COVID-19 Pandemic continues to disrupt travel, trade, and many 
normal activities around the world.   

The crop progressed well under sunny and warm conditions, which prevailed early in the period.  
Daytime high temperatures in the low 90s over the weekend dropped into the low to mid-80s as 
thunderstorms brought moisture to the region later in the week.  Overnight lows were in the upper 
60s to low 70s.  Weekly accumulated precipitation totals measured from 1 to 2 inches, with heavier 
amounts observed in some locations.  Producers welcomed the moisture on dryland fields which will 
invigorate young plants.  Older plants in irrigated fields that missed significant precipitation 
were watered.  Producers applied plant growth regulators.  Squaring gained momentum and boll-setting 
has begun in the oldest fields.  Producers treated fields for plant bug and aphid infestations, but 
insect pressure was not heavy.  According to the National Agricultural Statistics Service’s Crop 
Progress report released June 22, squaring had reached 45 percent in Louisiana and 17 percent in 
Mississippi; both figures lagged behind the five-year average.   

Trading 
  
North Delta 
..
No trading activity was reported.   

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 higher. Producer interest in forward contracting was light. Trading 
of CCC-loan equities was active. Foreign inquiries were light. The lack of demand and the COVID-19 
Pandemic continued to impact commodity markets.     
    
The first two bales of the nation were harvested in the Rio Grande Valley on June 18 and delivered 
to a gin in Mercedes, TX, according to the Pest Cast newsletter published on June 19. Insecticidal 
treatments were applied for Verde bugs and whitefly.  Fields were soggy in some areas following recent 
rainfall.  In south Texas, producers were hopeful for high yielding stands at 2 to 4 bales per acre. 
Stands were setting bolls with a few beginning to show opened bolls.  Moderate to heavy rainfall was 
received in the Upper Coast.  Harvest was expected to start in mid-August. Stands were squaring and 
progressing in the Blackland Prairies. Intermittent, heavy rainfall was received on already saturated 
fields.  Kansas and Oklahoma received up to 5 inches of beneficial rainfall.  Cotton progress varied 
from emerged seedlings to initial squaring. Producers were encouraged because the rainfall gave seeds 
planted in dry soil a chance to emerge and advance.    

West Texas 

Spot cotton trading was slow.  Supplies and producer  offerings were moderate.  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 light. The COVID-19 Pandemic continued to 
impact commodity markets.    
     
Planting was completed with daytime temperature highs in the upper 80s to upper 90s, and overnight 
temperatures in the 60s and 70s. Replanting was underway.  Most areas received beneficial rainfall that 
gave stands a boost.  Precipitation was reported at a few tenths up to around 3 inches, according to 
local reports.   Maturity was in a wide range from emerged to squaring in earlier-planted fields.  
Emergence has been erratic depending on how much rainfall was received.  Fields quickly dried under 
hot, windy conditions.  Fleahoppers and bollworms were present.  According to the Texas A&M Agrilife 
Concho – St. Lawrence Integrated Pest Management update, wildlife caused problems looking for anything 
green to eat. Deer and rabbits were the main culprits eating from new stands.     
 
Trading 
 
 
East Texas 
..
In Texas, a light volume of mostly color 23 and 33, leaf 2 and 3, staple 34 and longer, mike 34-47, 
strength 26-33, uniformity 78-81, and 25 percent extraneous matter sold for around 43.25 cents per pound, 
FOB warehouse (compression charges not paid).   
..
In Oklahoma, a moderate volume of mostly color 22 and better, leaf 4 and better, staple 35 and longer, 
mike 38-52, strength 28-30, uniformity 80-81, and 25 percent extraneous matter sold for around 56.75 
cents, FOB car/truck (compression changes not paid).  
..
A heavy volume of 2019 CCC-loan equities traded for 1.25 to 5.75 cents. 

West Texas 
..
A light volume containing mostly color 31, leaf 3, staple 33 and 34, mike averaging 45.6, strength           
averaging 28.5, and uniformity averaging 81.0 sold for around 55.50 cents per pound, FOB car/truck 
(compression charges not paid).   
..
A light volume of mostly color 11 and 21, leaf 1, staple 34, mike averaging 46.5, strength 28-35, and       
uniformity averaging 79.8 sold for around 51.00 cents, same terms as above.     
..
A heavy volume of 2019 CCC-loan equities traded for 1.75 to 5.50 cents. 


Western Markets Regional Summary 


Desert Southwest (DSW) 


Spot cotton trading was inactive.   Supplies were moderate.   Demand was light.  The effects of the 
COVID-19 Pandemic slowed the marketing chain for cotton.  Average local spot prices were higher.   
No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.           
     
Triple-digit temperatures were the norm, and daytime highs reached 111 degrees late in the period.  
Producers monitored the crop for heat stress.  Cotton  squaring stage was at 75 percent compared to the  
five-year average of 47 percent as reported by the National Agricultural Statistics Service (NASS) for 
week ending June 21.  Local sources reported the crop made good progress.  Boll-setting advanced in 
Yuma.  No insect activity was reported.  Warehouses were busy shipping cotton, but light volumes.  
Temperatures were in the low 100s for New Mexico and El Paso, TX. Good, solid stands were established.  
The crop made good progress.  Insect pressures were easily controlled.  According to NASS, cotton 
squaring was 6 percent on track with the five-year average.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light. The COVID-19 Pandemic continued to 
impact the U.S. economy.  Average local spot prices were higher.  No forward contracting or domestic 
mill activity was reported.  Foreign mill inquiries were light. Warehouses were shipping cotton as some 
mills were ready to receive previously delayed shipments.   
     
Triple-digit temperatures were prevalent for the week. Heat advisories are in effect through Saturday, 
June 27.  The crop made excellent progress.    Cotton at squaring stage was 35 percent near the five-year 
average of 39 percent as reported by the National Agricultural Statistics Service for week ending June 21.  
No insect pressures were reported.   
  
American Pima (AP) 

Spot cotton trading was inactive.  Supplies of 2019-crop cotton were moderate.  Demand was light.  
Average local spot prices were steady.  No forward contracting or domestic mill activity was reported.  
The COVID-19 Pandemic continues to affect demand for cotton.  Foreign mill inquiries were light.   
Hot, dry conditions were reported throughout the region.  Temperatures were in the low to high 100s.  
No rainfall was recorded in the period.  Boll-setting advanced in Arizona.  The crop was squaring in the 
San Joaquin Valley fields of California.  Overall, the crop made excellent progress in the Far West.  
Early returns on the annual Variety Survey indicate significant reductions in AP acreage for California.     

Trading 
 
Desert Southwest 
..
No trading activity was reported.   

San Joaquin Valley 
..
No trading activity was reported.   

American Pima 
..
No trading activity was reported.   



USDA ANNOUNCES SPECIAL IMPORT QUOTA #10 
FOR UPLAND COTTON 
June 25, 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 July 2, 2020, allowing importation of 7,445,241 kilograms (34,195 bales 
of 480-lbs) of upland cotton.  
     
Quota number 10 will be established as of July 2, 2020 and will apply to upland cotton purchased not later than 
September 29, 2020 and entered into the U.S. not later than December 28, 2020. The quota is equivalent to one 
week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period February 
2020 through April 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