Spot quotations averaged nearly 629 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 138.72 cents per pound for the week ending Thursday, May 12, 2022.
The weekly average was down from 145.01 cents last week, but up from 83.64 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 137.93 cents Monday, May 9 to a high of 140.53 cents Thursday, May 12.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 12 totaled 581 bales. This compares to 9,603 reported last week and 8,990 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 1,612,162 bales compared to 1,360,417 bales the corresponding week a year ago. The ICE July settlement price ended the week at 145.53 cents, compared to 148.76 cents last week.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #4 FOR UPLAND COTTON May 12, 2022
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 May 19, 2022, allowing importation of 9,898,391 kilograms (45,462 bales of 480-lbs) of upland cotton.
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Quota number 4 will be established as of May 19, 2022 and will apply to upland cotton purchased not later than August 16, 2022 and entered into the U.S. not later than November 14, 2022. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period January 2022 through March 2022, 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.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. The COVID-19 Pandemic continues to disrupt labor availability and logistics, but cities and locales were easing COVID restrictions.
Mostly sunny to partly cloudy conditions prevailed across the lower Southeast during the period. Daytime high temperatures were in the 80s. Scattered shower activity brought moisture to portions of north and south Alabama, the Florida Panhandle, and south Georgia. Weekly accumulated precipitation totals measured from trace amounts to around one and one-half of an inch of moisture.
Despite the limited rainfall, dry conditions persisted and an area of severe drought was introduced to the lower Savannah River Basin, according to the U.S. Drought Monitor. Planting advanced but was delayed in some areas due to dry conditions. Producers irrigated fields and seedlings were emerging. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released May 9, planting advanced to 26 percent in Alabama and 22 percent in Georgia.
A mix of overcast to sunny conditions were observed across the upper Southeast during the period. Daytime high temperatures were mostly in the 70s and 80s. Intermittent shower activity brought around 1 to 2 inches of moisture to cotton growing areas of eastern North Carolina and Virginia. Planting activity advanced at a rapid pace, but wet conditions delayed fieldwork in some areas. According to NASS, planting advanced to 27 percent in North Carolina and Virginia, and 22 percent in South Carolina.
Textile Mill
Domestic mill buyers inquired for a moderate volume of 2022-crop cotton, color 41, leaf 4 and better, and staple 34 and longer for first quarter 2023 delivery. No sales were reported. Yarn demand remained good and mills continued to operate at capacity as allowed by labor availability. Mills continued to produce personal protective equipment for frontline workers and consumers.
Demand through export channels was good. Mill buyers throughout the Far East inquired for 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 lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international marketing channels, domestic supply chains, and the labor force overall.
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Clear to partly cloudy weather prevailed during most of the week. Daytime high temperatures were in the 80s and 90s, slightly above seasonal averages. Overnight low temperatures were in the 60s and 70s. Ideal weather conditions in most areas allowed planting to progress at a rapid rate. Some fields were already up to a stand. Weed control was a top priority. Cotton extension specialists advised producers that controlling weed populations this season would require the proper use and timely application of a limited assortment of herbicides.
According to the National Agricultural Statistics Service’s Crop Progress report released on May 9, planting advanced to 32 percent complete in Arkansas, about one week ahead of the five-year average. Missouri had reached 20 percent, with Tennessee reporting 13 percent. Both of the figures were right at the five-year average. Virtual and in-person industry meetings were being planned and attended.
South Delta
Spot cotton trading was slow. Supplies of available cotton and demand were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international supply chains and the worldwide labor force.
Clear skies and hot temperatures prevailed during the week. Daytime high temperatures were in the 90s. Overnight low temperatures were in the 60s and 70s. However, recent rainfall hindered fieldwork in a few places due to muddy fields. Producers made excellent progress with sowing this season’s crop in all areas. Most producers reported that they were nearly two weeks ahead of last season’s pace.
Cotton extension specialists continued to emphasize that the proper use and timely application of available herbicides would be critical to controlling weed populations. According to the National Agricultural Statistics Service’s Crop Progress report released on May 9, planting had reached 58 percent complete in Louisiana and 34 percent in Mississippi. The figures were at least a week ahead of the five-year average.
Virtual and in-person industry meetings were being planned and attended. Local experts estimated that acreage had increased significantly compared to last year. Many fields had germinated and some were up to a stand.
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 light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. The COVID-19 Pandemic continued to place pressure on logistics. Global economic recovery was slow.
Cotton was squaring in the Rio Grande Valley with daytime highs in the low to upper 90s. According to industry experts, cotton aphid infestations increased and treatments were applied. Some fields were abandoned in the Coastal Bend and in the Upper Coast. Stands advanced where rain was received earlier in the month, and irrigation water was available. Stands made good progress in the Blackland Prairies and in the Brazos Valley because of recent rainfall.
In Kansas, a light amount of beneficial rainfall was received with daytime highs in the upper 70s to low 100s. Fields were in good condition for planting and some operations were planting 24 hours a day. According to the National Agricultural Statistics Service’s Kansas Crop Progress and Condition report published on May 9, cotton planted was at 11 percent, identical to last season, and near the five-year average of 7 percent.
In Oklahoma, fieldwork was hampered by persistent windy conditions with daytime highs in the upper 70s to upper 100s. The daytime high temperatures were 107 and 108 degrees on May 8 and 9. Cotton planting was underway in spite of gusting winds.
West Texas
Spot cotton trading was inactive. Supplies were light. Producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. The COVID-19 Pandemic continued to place pressure on commodity markets and shipping logistics. Global economic recovery was slow.
Strong thunderstorms brought up to 2 inches of precipitation to areas in the High Plains with daytime temperatures in the low 90s to upper 100s. Abilene reached 108 degrees on May 7. Trace to light amounts of rainfall were received in the Rolling Plains and coverage was not widespread. Extreme-to-exceptional drought conditions persisted in west Texas, according to the U.S. Drought monitor.
Winds gusting more than 80 miles per hour caused structural damage on some structures and posed dangerous road conditions for travelers. Ground temperatures were optimal, and planting expanded. Some producers operated planters around the clock since there was moisture present in the soil. Lots of acreage has been planted late in the period following thunderstorms.
Trading
East Texas
- In Oklahoma, a lot containing a light volume of mostly color 12 and better, leaf 3 and better, staple 34, mike averaging 39.0, strength averaging 30.3, uniformity averaging 80.3 and 50 percent extraneous matter sold for around 128.50 cents per pound, FOB car/truck (compression charges not paid).
- A light volume of CCC-loan equities traded for 55.50 cents.
West Texas
- No trading activity was reported.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill inquiries were reported. Producers continued to monitor December 22 futures. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status.
Central Arizona temperatures were in the high 80s to high 90s. The crop made good progress in Yuma. Young cotton plants made good progress in central Arizona and in the Safford Valley. Planting continued in the DSW. The crop was developing normally. According to the National Agricultural Statistics Service (NASS) Crop Progress report released on May 9, plantings were at 78 percent compared to the five-year average of 74 percent for Arizona.
Daytime high temperatures were in the high 80s to mid-90s for New Mexico and El Paso, TX. Strong wind conditions were prevalent, which increased chances for fire danger. No fires were reported in southern New Mexico. According to the NASS Crop Progress report, plantings were at 38 percent compared to the five-year average of 44 percent in New Mexico. No rainfall was recorded in the period for the DSW.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status.
Temperatures were in the 60s and 70s for most of the period. A cold front brought snowfall to the northern Sierra Nevada Mountain range. Scattered showers were reported in the northern SJV, but only windy conditions were received for the central and southern Valley. Crop progress was slowed by cooler conditions. As conditions remained dry, no insect pressures were reported.
The California Department of Food and Agriculture reported no cotton seed bugs were found in the SJV. However, they do continue to find the pest in southern California. Monitoring will continue in cotton fields this fall. The California Cotton Ginners and Growers Association Annual meeting was attended by industry.
American Pima (AP)
Spot cotton trading was inactive. Supplies were light. Demand was very good. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status. Shipping logistics remained complicated and impacts to the supply chain continues.
Daytime high temperatures were in the 60s to 90s for the Far West. Strong winds were prevalent in the period. No rainfall was recorded in the region. Some snowfall was received in the Sierra Nevada Mountain range. Planting was virtually completed. Cool temperatures slowed crop development in the San Joaquin Valley of California. Overall, the young cotton crop made good progress. Dry conditions minimized insect pressure.
The California Department of Food and Agriculture reported no cotton seed bugs were found in the SJV. However, they do continue to find the pest in southern California. Monitoring will continue in cotton fields this fall. A west Texas gin was being modified to a roller gin. It is expected to be operational this fall. The California Cotton Ginners and Growers Association Annual meeting was attended by industry.
Trading
Desert Southwest
- No trading activity was reported.
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
