Spot quotations averaged 408 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 133.39 cents per pound for the week ending Thursday, June 2, 2022.
The weekly average was down from 137.47 cents last week, but up from 79.41 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 134.42 cents Friday, May 27 to a low of 131.06 cents Wednesday, June 1.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 2 totaled 1,202 bales. This compares to 1,832 reported last week and 252 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 1,617,594 bales compared to 1,362,548 bales the corresponding week a year ago. The ICE July settlement price ended the week at 139.11 cents, compared to 140.61 cents last week.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #7 FOR UPLAND COTTON June 2, 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 June 9, 2022, allowing importation of 9,898,391 kilograms (45,462 bales of 480-lbs) of upland cotton.
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Quota number 7 will be established as of June 9, 2022 and will apply to upland cotton purchased not later than September 6, 2022 and entered into the U.S. not later than December 5, 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.
A mix of sun and clouds were observed across the lower Southeast during the period. Seasonably warm daytime high temperatures were mostly in the low 90s. Widespread thundershowers brought moisture to areas throughout Alabama, the Florida Panhandle, and Georgia over the weekend. Precipitation totals measure 1 to 3 inches with heavier accumulations observed along Gulf coastal areas.
The wet weather delayed fieldwork, but planting resumed at a rapid pace once soft soils firmed. Planting progress remained near the five-year average. Weed control was a problem in some fields due to the moisture. Producers welcomed the rainfall which fortified soil moisture and invigorated emerging seedlings. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released May 31, planting advanced to 85 percent in Alabama and 73 percent in Georgia.
Mostly sunny to partly cloudy skies were observed across the Carolinas and Virginia during the period. Daytime high temperatures were in upper 80s to low 90s. Isolated thunderstorms brought light moisture to portions of cotton growing areas of the upper Southeast over the weekend. Despite the moisture, moderate and severe drought conditions continued along areas of the coastal Carolinas, according to the U.S. Drought Monitor.
Planting advanced at a rapid pace with little interruption. According to NASS, planting advanced to 82 percent in North Carolina, 81 in South Carolina, and 68 percent in Virginia.
Textile Mill
Domestic mill buyers inquired for a moderate volume of 2022-crop cotton, color 41, leaf 4, and staple 34 and 35 for November/December delivery. Mill buyers also inquired for a moderate volume of color 41, leaf 4, and staple 35 for nearby delivery. No sales were reported. Yarn demand remained good, but labor shortages continued to limit mill ability to operate at capacity. Mills continued to produce personal protective equipment for frontline workers and consumers.
Demand through export channels was good. Agents for mills in India purchased a moderate volume of color 31 and 41, leaf 3, and staple mostly 37 for June/July shipment.
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.
Overcast to partly cloudy weather prevailed during most of the week. Scattered thundershowers brought less than 1 inch of rain to the territory. Daytime high temperatures were in the 80s and 90s, somewhat warmer than seasonal averages. Overnight low temperatures were in the 60s and 70s. Cotton seedlings were developing normally. Local experts reported that the cooler temperatures experienced in previous weeks allowed thrip populations to thrive, necessitating the application of pesticides to control infestation.
According to the National Agricultural Statistics Service’s Crop Progress report released on May 31, planting advanced to 89 percent complete in Arkansas, 93 in Missouri, and 85 percent in Tennessee. The figures for Missouri and Tennessee were very near the five-year average. Virtual and in-person industry meetings were being planned and attended.
South 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 supply chains and the worldwide labor force.
Favorable weather conditions in most areas allowed planting to approach completion in most areas. Daytime high temperatures were in the 80s and 90s. Overnight low temperatures were in the 60s and 70s. A series of thunderstorms, some severe, brought rain showers to parts of the region. Less than 2 inches of rain were reported in cotton-producing areas. The crop made good progress in most places.
Thrip populations rose well above the economic threshold level in some places, requiring producers to apply crop protection chemicals to control infestations. According to the National Agricultural Statistics Service’s Crop Progress report released on May 31, planting was close to completion in Louisiana at 98 percent and 90 percent in Mississippi. The figures were at least one week ahead of the five-year average. Virtual and in-person industry meetings were being planned and attended.
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 inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. The U.S. COVID-19 Pandemic status continues. Temperatures were in the mid-80s to mid-90s in east and south Texas.
Light showers provided very little moisture to the Upper Coast and east Texas during the period. Various industry members toured the Rio Grande Valley (RGV) and south Texas assessing the crop. Sources reported the RGV irrigated crop made excellent progress due to timely rains the previous week. Boll-setting was good, and it appeared yield expectations were above average.
Dryland acreage advanced and was blooming at the tops of plants. Overall, sources reported the crop as a mixed bag. In the Coastal Bend, it was estimated that nearly 50 percent of the crop was plowed under. Crop progress in the Upper Coast and east Texas was good.
Kansas growers were able to get the crop planted nearly 7 to 10 days earlier than normal, but areas experienced cool daytime temperatures in the 50s and 60s which affected germination rates. Some producers were replanting this week as temperatures rebounded into the 90s and low 100s. Windy and cloudy conditions moved into the area late week dropping temperatures into the 60s and 70s.
Official weather stations recorded around one-tenth of an inch of moisture, with localized heavy downpours reported. Temperatures were in the 80s and 90s for Oklahoma. Severe weather entered the area late week bringing strong winds and heavy scattered showers. Around one-half of an inch of rainfall was received. Flooding remains a threat due to heavy downpours.
West Texas
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Trading of CCC-loan equities was inactive. Foreign mills inquiries were light. The U.S. remains in COVID-19 Pandemic status.
Temperatures were mostly in the 90s for the region. Scattered thunderstorms brought strong winds and moisture to the area. Rainfall was deposited in the Panhandle and into the Rolling Plains. Precipitation totals measured one-half of an inch up to one and one-half inches in the period. Areas south and west of Lubbock received no rain. The soil moisture profile remained very low. Planters were active ahead of the June 5 insurance deadline. Sources reported that seedlings were up in some fields.
Trading
East Texas
- No trading activity was reported.
West Texas
- A light volume of mostly color 21 and better, leaf 2 and better, staple 34-38, mike averaging 35.9, strength averaging 26.5, and uniformity averaging 77.9 sold for around 123.50 cents per pound, FOB car/truck (compression charges not paid).
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 activity was reported. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status.
Central Arizona temperatures were in the high 90s to low 100s. Air quality alerts remained in effect. No rainfall was recorded in the period. The DSW crop made good progress. No significant insect pressures were reported. Producers attended technology workshops. Extension specialists advised producers on the proper usage of manure applications as a substitute for nitrogen and phosphorus, due to increased fertilizer prices or lack of availability.
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 down into the 80s. Fieldwork was active with first irrigations and monitoring for pests. Some producers treated for lygus as population numbers increased. The crop made good progress. Some of the crop was squaring. Mandatory water cutbacks began in southern California on June 1.
American Pima (AP)
Spot cotton trading was inactive. Supplies were light. Demand was good. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. The U.S. continues in COVID-19 Pandemic status.
Mild temperatures were recorded throughout the Far West. Temperatures were in the 80s to low 100s. Fieldwork was active. Producers were irrigating the crop. In the San Joaquin Valley of California, some areas were treated for lygus. No significant insect pressures were reported in the Desert Southwest. Overall, the crop made good progress.
Trading
Desert Southwest
- No trading activity was reported.
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
