USDA U.S. Department of Agriculture - November 13, 2020
Mp_cn812
November 13, 2020
Weekly Cotton Market Review
Average spot quotations were slightly up from 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
65.10 cents per pound for the week ending Thursday, November 12, 2020. The weekly average
was up from 65.02 last week and 61.36 cents reported the corresponding period a year ago.
Daily average quotations ranged from a low of 64.30 cents Friday, November 6 to a high of
65.89 cents Monday, November 9. Spot transactions reported in the Daily Spot Cotton Quotations
for the week ended November 12 totaled 22,630 bales. This compares to 16,224 reported last
week and 34,069 spot transactions reported the corresponding week a year ago. Total spot
transactions for the season were 339,891 bales compared to 271,345 bales the corresponding
week a year ago. The ICE Dec settlement price ended the week at 68.48 cents, compared to 70.07 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was moderate. Supplies and producer offerings were moderate.
Demand was good. Average local spot prices were firm. Trading of CCC-loan equities
was inactive. The COVID-19 Pandemic continues to negatively affect cotton demand and
disrupt supply chains.
Clear to overcast conditions were observed across the lower Southeast during most of the
period. Daytime high temperatures varied from the low 70s to mid-80s. Dry conditions allowed
defoliation and harvesting to advance at a good pace as producers attempted to get as much
cotton off the stalk ahead of wet weather which arrived late in the week. Fieldwork was
interrupted as Tropical Storm Eta made landfall along the north west edge of the Florida
peninsula early Thursday morning with maximum sustained winds of 50 mph, according to the
National Hurricane Center. The storm tracked northeastward as it swept across Florida and the
southeastern edge of Georgia. Rainfall totals measured from one-half of an inch to two inches.
The unwelcome wet weather was expected to exacerbate quality issues, particularly as the crop
has already weathered several major storm events this season. Ginning continued uninterrupted.
According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released
November 9, cotton harvested had reached 57 percent in Alabama and 52 percent in Georgia.
Sunny to fair conditions over the weekend and early in the week allowed harvesting and
defoliation to advance at a good pace across the upper Southeast region. Daytime high
temperatures were mostly in the mid-to-upper 70s. Field activities were halted as Tropical
Storm Eta brought heavy rainfall and strong winds to areas across the central and eastern
Carolinas and Virginia. Rainfall totals measured from 1 to 3 inches with locally heavier
accumulations observed along coastal areas. Producers welcomed a sunny weather forecast,
which will help to dry soft soils and bleach out discolored lint. Backlogs of modules were
accumulating on gin yards and ginning was expanding. According to the NASS Crop Progress
report released November 9, cotton harvested had reached 51 percent in North Carolina, 46 in
South Carolina, and 35 percent in Virginia.
Textile Mill
Buyers for domestic mills inquired for a moderate volume of color 31 and 41, leaf 4, and staple 36
for January through September 2021 delivery. No sales were reported. Reports indicated that mills
continued to incrementally increase operating schedules as warranted by finished product demand and
as allowed by adequate staffing levels. Additional inquiries from domestic mill buyers were light.
Yarn demand was good. Mills continued to produce personal protective equipment for frontline workers
and military supplies.
Demand through export channels was light. Agents throughout the Far East inquired for any discounted styles of cotton.
Trading
•
A light volume of color 31 and 41, leaf 3 and 4, staple 36 and 37, mike 43-49, strength 29-32, and
uniformity 80-82 sold for around 400 points on ICE December futures, FOB car/truck, Georgia terms
(Rule 5, compression charges paid, 30 days free storage).
•
A moderate volume mixed lot containing color mostly 42, leaf 4 and 5, staple 34-36, mike 43-52, strength 27-29,
and uniformity 80-83 sold for around 425 points off ICE December futures, same terms as above.
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 steady. Trading of CCC-loan equities was slow. No forward
contracting was reported. The COVID-19 Pandemic continues to negatively impact the overall global economy.
Warm daytime temperatures dominated the weather pattern during the week. Highs were in the upper 60s and 70s.
Overnight lows were in the 50s and 60s. No precipitation was reported during the period. Field activities
progressed rapidly under ideal conditions as cotton was harvested, stalks shredded, and fields worked for
planting next spring. Producers reported that yields were off slightly from earlier estimates, but they were
generally pleased with the results. According to the National Agricultural Statistics Service’s Crop Progress
report released on November 9, cotton harvested had reached 89 percent completed in Arkansas, 63 in Missouri,
and 64 percent in Tennessee. These figures were near the five-year average in Arkansas and Tennessee, and
about two weeks behind average in Missouri.
South Delta
Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local
spot prices were steady. Trading of CCC-loan equities was inactive. A light volume of forward contracting
was reported. The COVID-19 Pandemic continues to negatively impact economic activity around the world.
Above average daytime temperatures prevailed during the week. Highs were in the upper 70s.
Overnight lows were in the 50s and 60s. No rainfall was reported during the week. Harvest activities
progressed rapidly under excellent conditions as cotton was picked, stalks shredded, and fields were
prepped for spring planting. Producers reported that yields were somewhat lower than expectations,
but they were mostly satisfied with the results. According to the National Agricultural Statistics Service’s (NASS)
Crop Progress report released on November 9, harvesting advanced slowly and reached 95 percent completed
in Louisiana and 85 percent in Mississippi. Harvesting was about one week behind the NASS five-year
average in both states due to inclement weather.
Trading
North Delta
•
A light volume of CCC-loan equities traded for around 15.00 cents per pound.
South Delta
•
Producers booked a light volume of CCC-loan equities for 15.00 cents per pound.
Southwestern Markets Regional Summary
East Texas
Spot cotton trading was active. Supplies were heavy. Producer offerings were heavy.
Demand was moderate. Average local spot prices were steady. Producer interest in forward
contracting was moderate. Trading of CCC-loan equities was slow. Foreign inquiries were
moderate. Interest was best from Pakistan, Taiwan, and Vietnam. The COVID-19 Pandemic
continued to influence market uncertainty and impact global cotton demand.
Many of the gins have closed operations in south Texas and in the Upper Coast. Most of the
gins surpassed their pre-season estimates. Some gins were processing the remaining modules
and were expected to offer pressing services into December. Harvesting and ginning continued
uninterrupted in the Winter Garden area under clear weather. Stalks were shredded and fields
were tilled in preparation for winter. Harvesting in the Blackland Prairies (BP) from Waco south
was completed. Local reports indicated that harvesting from Waco north was around 80 percent
completed. Harvesting was expected to continue for one more month excluding any adverse weather
events in the northern BP.
In Kansas, dryland yields were reported around 1,100 pounds per acre on early harvested fields.
Low mike is a concern on initial grade results. The freeze and cold rain did more damage than
originally thought and the top crop did not mature well. In southern Kansas, harvesting and
ginning were delayed. The fields were too wet from recent rainfall to haul the modules to the
gins. In Oklahoma, daytime temperature highs were in the low 50s to mid-70s and overnight lows
were in the 30s to 50s. Harvesting made progress, but was intermittently delayed by occasional
gusting winds and periods of high humidity. Rainfall is included the nearby forecast.
West Texas
Spot cotton trading was active. Supplies were heavy. Producer offerings were heavy. Demand was
good. Average local spot prices were steady. Producer interest in forward contracting was moderate.
Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from
Pakistan, Taiwan, and Vietnam. The COVID-19 Pandemic continued to impact commodity markets and
global cotton demand. Infection rates spiked and continued to pressure local medical institutions
and resources. Mobile medical tents were erected to begin treating patients outside.
Harvesting advanced after sunny weather returned to the region with daytime temperature highs in
the low 60s to low 80s, and overnight lows in the 30s to 50s. Gusty winds occasionally caused
harvesting delays. Modules were hauled from the fields to the gin yards. Ginning continued mostly
uninterrupted aside from intermittent wind delays and repairs. Fields where cotton was on the ground
as a result of the ice storm were assessed by crop insurance agents. Harvested fields were tilled and
prepped for winter. Industry members continued to meet virtually to share crop information and conduct business.
Trading
East Texas
•
In Texas, a mixed lot containing a light volume of mostly color 42 and 52, leaf 4 and 5,
staple 32 and 33, mike 37-41, strength 23-27, uniformity averaging 78.3, and 25 percent extraneous
matter sold for around 50.50 cents per pound, FOB warehouse (compression charges not paid).
•
In Oklahoma, a light volume of cotton mostly color 21 and 31, leaf 1 and 2, staple 36 and longer,
mike 39-44, strength 29-32, and uniformity 78-81 sold for around 73.50 cents, FOB car/truck (compression charges not paid).
•
A similar lot containing a light volume of cotton color 21 and 31, leaf 1 and 2, staple 36, mike averaging 41.4,
strength averaging 31.0, and uniformity averaging 80.6 sold for around 72.50 cents, same terms as above.
•
A light volume of CCC-loan equities traded for 1.00 to 7.25 cents.
West Texas
•
A moderate volume containing mostly color 11 and 21, leaf 1 and 2, staple 38-40, mike 41-44, strength
averaging 29.5, and uniformity 79-83 sold for around 73.00 cents per pound, FOB car/truck (compression charges not paid).
•
A moderate volume of mostly color 11 and 21, leaf 1 and 2, staple 39-42, mike averaging 38.1, strength
averaging 29.2, and uniformity 79-83 sold for around 71.75 cents, same terms as above.
•
A moderate volume of mostly color 11 and 21, leaf 3 and better, staple 34 and 35, mike 40-46,
strength 27-31, and uniformity 77-80 sold for around 65.75 cents, same terms as above.
•
A moderate volume of mostly color 11 and 21, leaf 2 and 3, staple 36, mike averaging 32.2,
strength averaging 30.4, uniformity averaging 80.0, and 25 percent extraneous matter sold for around
63.00 cents, same terms as above.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was good.
Average local spot prices were steady. No forward contracting or domestic mill activity was reported.
Foreign mill inquiries were moderate. The COVID-19 Pandemic continues to pressure the U.S. economy.
Mostly sunny conditions were prevalent in central Arizona. Temperatures dropped into the low to
mid-60s. No rainfall was recorded in the period. Harvesting and ginning continued uninterrupted.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady.
No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
The COVID-19 Pandemic continues to negatively impact the U.S. economy.
Temperatures were in the high 50s to low 60s. Rolling thunder, hail, rain, and snow brought in the
first winter weather early in the period. Wet conditions temporarily slowed harvesting. Rainfall
cleared hazy conditions and settled the dust. Precipitation amounts were around one-tenth of an inch,
with some locales receiving more. Ginning continued uninterrupted.
American Pima (AP)
Spot cotton trading was inactive. Supplies of 2019-crop were light and were moderate for 2020-crop cotton.
Demand was moderate. Average local spot prices were steady. No forward contracting was reported.
Foreign mill inquiries were moderate. Interest was best from Thailand. COVID-19 Pandemic slowed the U.S.
economy and the spike in new infections overseas affected the progress of global economies.
Cold temperatures descended into the Far West early in the reporting period. Cloudy conditions
brought the first rains and snowfall to the region. Daytime high temperatures were in the 50s and 60s,
with overnight lows in the 30s and 40s. Harvesting was delayed due to damp conditions in the San Joaquin
Valley (SJV) of California. Harvest reached 80 percent completed in the SJV. Harvesting gained momentum
in Arizona, New Mexico, and Texas. Local sources reported yield averages of around 750 pounds on irrigated
acreage around the Lamesa, TX area. Ginning was steady.
Trading
Desert Southwest
•
A moderate volume of Arizona cotton mostly color 11, leaf 1, staple 37 and longer, mike averaging 46.0,
strength averaging 29.5, and uniformity averaging 81.0 sold for 72.00-73.00 cents per pound,
uncompressed, FOB warehouse.
•
A light volume of New Mexico cotton color 11 and 21, leaf 1 and 2, staple 36 and 37, mike averaging 42.0,
strength averaging 31.1, and uniformity averaging 80.5 sold for around 71.75 cents, FOB car/truck (compression charges not paid).
San Joaquin Valley
•
No trading activity was reported.
American Pima
•
A moderate volume of 2020-crop cotton was sold to domestic mills for December through February delivery.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #4
FOR UPLAND COTTON
November 12, 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 November 19, 2020, allowing importation of 8,108,926 kilograms (37,244 bales of 480-lbs) of upland cotton.
Quota number 4 will be established as of November 19, 2020 and will apply to upland cotton purchased not
later than February 16, 2021 and entered into the U.S. not later than May 17, 2021. The quota is equivalent
to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period
July 2020 through September 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.
