Spot quotations averaged 366 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 85.59 cents per pound for the week ending Thursday, October 6, 2022.
The weekly average was down from 89.25 cents last week and 105.00 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 89.06 cents Tuesday, October 4 to a season low of 83.76 cents Thursday, October 6.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended October 6 totaled 2,964 bales. This compares to 2,198 bales reported last week and 9,616 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 29,230 bales compared to 55,504 bales the corresponding week a year ago. The ICE December settlement price ended the week at 82.90 cents, compared to 85.16 cents last week.
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 continued to disrupt labor availability and logistics, but cities and locales were easing restrictions.
 |
More on CottonUnable to display feed at this time. |
|
Clear to partly cloudy conditions prevailed across the upper Southeast during the period. Daytime high temperatures were in the 70s and 80s. Cotton growing areas of Alabama, the Florida Panhandle, and Georgia saw little to no rainfall during the period. Windy conditions were observed in Alabama and Georgia as Hurricane Ian brushed along the Atlantic coast. Producers were applying defoliants, and harvesting was getting underway.
Ginning was getting started, and modules were accumulating on gin yards. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released October 3, bolls opening was at 86 percent in Alabama and 81 in Georgia; cotton harvested was at 14 percent in Alabama and 9 in Georgia. Hurricane Ian made landfall early in the period on the upper South Carolina coast bringing heavy rainfall and sustained winds of 85 mph.
Ian weakened into a post-tropical cyclone hours after moving inland and dissipated over southern Virginia over the weekend. Areas throughout the Carolinas received three to five inches of moisture, and flash flooding was observed. In the Low Country area lashing winds laid down cotton plants and blew lint out of bolls or strung out lint. Fields that had yet to be defoliated faired better, with the heaviest damage reported in defoliated fields.
Local experts made initial estimates of 100 to 300 pounds of yield loss in the most affected areas. Sunny conditions later in the period helped to bleach out lint and allowed fieldwork to resume. According to NASS, bolls opening was at 91 percent in Virginia, 89 in North Carolina, and 75 percent in South Carolina; cotton harvested was at 10 percent in North Carolina and Virginia, and 7 percent in South Carolina.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 51 and better, leaf 5 and better, and staple 32 and longer for January through December 2023 delivery. No sales were reported. Reports indicated most mills had covered their raw cotton needs through early 2023. Yarn demand had moderated as buyers indicated finished product supplies were sufficient in retail sectors. Mills continued to produce personal protective equipment for frontline workers and consumers.
Demand through export channels was moderate. Agents for mills in Pakistan purchased a moderate volume of color 41, leaf 4, and staple 34 for November/December shipment. Representatives for Vietnamese mill buyers inquired for a moderate volume of USDA Green Card class, color 41, leaf 3, and staple 37 for February through June 2023 shipment. No sales were reported.
Trading
- No trading activity was reported.
South Central Markets Regional Summary
North Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very 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 negatively impact domestic and international marketing channels, consumer-goods supply chains, and the labor force overall.
Mild daytime conditions prevailed throughout the region during the week, with temperatures in the 70s and 80s. Cool overnight temperatures dropped down to the 40s and low 50s. No precipitation was reported throughout the territory. The crop made good progress under favorable conditions. Boll opening advanced steadily throughout the region. Defoliation gained momentum.
Early-planted fields have been harvested, and a few gins with sufficient backlogs of modules had begun annual pressing activities. Classing operations have commenced for Dumas and Memphis. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report, released on October 3, boll opening advanced to 96 percent complete in Arkansas, 83 in Missouri, and 69 percent in Tennessee.
NASS reported that harvesting advanced in Arkansas to 19 percent and 6 percent in both Missouri and Tennessee. All of the figures for Missouri and Tennessee were about one week behind 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 were light. Demand was very light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Domestic and international marketing channels, supply chains, and labor forces overall are still being negatively affected by the COVID-19 virus.
Warm daytime conditions prevailed throughout the region during the week, with temperatures in the 80s. A cooling trend mid-week brought overnight temperatures in the upper 40s. No rainfall was reported throughout the region, which made for ideal harvesting conditions. Defoliation was in full swing as boll opening approached completion. Harvesting gained momentum throughout the region, and ginning was well underway.
Backlogs of modules continued to accumulate on gin yards. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report, released on October 3, boll opening was virtually complete at 97 percent in Louisiana and 90 in Mississippi. NASS reported that harvesting surged to 45 percent completed in Louisiana and advanced steadily to 16 percent in Mississippi. 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 light. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were lower. Producers continued to deliver bales to fulfill contracts. Producers price ideas were firm to higher. Bids were rejected. The December ICE futures market trended over two cents lower than the previous week. No domestic mill activity was reported. Foreign mill inquiries were light. Mills remained on the sidelines due to the volatile ICE futures market and declining consumer demand. The U.S. remained in COVID-19 Pandemic status.
Central Texas producers continued with harvest. Ginning was steady. Kansas dryland producers were waiting for a freeze to naturally defoliate the crop. Irrigated fields will spray defoliants starting next week. Producers were discouraged about the small boll size and lack of bolls. Harvesting began in the period. Two gins began operating. The Abilene Classing Office received the first samples of the 2022 crop.
This is the first time the office has received samples from Kansas before Texas. Oklahoma and central Texas gins considered delaying operations until they had enough cotton on gin yards to begin ginning without stopping. Most will operate one shift. A few central Texas gins will not operate this season.
West Texas
Spot cotton trading was inactive. Supplies were light. Demand was weak. Average local spot prices were lower. Producer’s price ideas were firm. The December ICE futures market trended over two cents lower than the previous week. Foreign mill inquiries were light. Mill interest was sidelined by excess inventory, lack of consumer demand, and the volatile ICE December futures market.
Temperatures were in the low 80s. Cloudy, overcast conditions brought general rainfall into west Texas late in the period. The rain slowed or stopped harvesting in some locales. Harvest aides were applied to fields that made it to harvest prior to the rain event. Weeds could be problematic, and extension agents recommend two treatments of defoliants. Harvesting was active in the northern High Plains. Initial ginning began in the High Plains.
Lubbock area gins considered delaying gin startups into November as electrical demand charges decrease into the winter months. Most gins will operate one shift, while some will be idle this season. The Lubbock Cotton Classification Complex received the first cotton samples of the 2022 crop. Many industry members were anxious to see the first quality results. Classing estimates were revised.
Trading
East Texas
- A heavy volume mixed lot containing mostly color 31 and 41, leaf 4 and better, staple 33 and longer, mike 37-49, strength 25-31, and uniformity 79-82 sold for around 93.00 cents per pound, FOB warehouse (compression charges not paid).
- A light volume of mostly color 31 and better, leaf 3 and better, staple 34 and 35, mike 42-48, strength 26-30, uniformity 79-82, and 25 percent extraneous matter sold for around 85.50 cents, same terms as above.
- A light volume of color mostly 22 and 42, leaf 2 and better, staple 33 and 34, mike averaging 40.1, strength averaging 24.5, and uniformity averaging 78.9 sold for around 72.00 cents, same terms as above.
West Texas
- No trading activity was reported.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Producer’s price ideas were firm for new-crop cotton. 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 high 80s to low 100s in the DSW. Ginning was steady in Yuma, AZ. Quality results continued good, with no issues. Bolls were cracking open throughout the region. Harvesting activities ramped up throughout the region. No ginning was reported in central Arizona, New Mexico, and El Paso, TX.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer’s price ideas were firm for new-crop cotton. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The U.S. remains in COVID-19 Pandemic status.
Unseasonably warm weather continued. No rainfall was received in the period. Defoliation activities advanced. Harvest was underway. Initial ginning began. Although, most gins will begin after the winter electrical rates kick in.
American Pima (AP)
Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic activity was reported. Producer’s price ideas were firm for new-crop cotton. Average local spot prices were steady. Foreign mill inquiries were light. The U.S. remains in COVID-19 Pandemic status.
Temperatures ranged in the 80s to 90s throughout the Far West. Bolls were cracking open. Defoliation activities advanced in the region. Harvesting is active in the San Joaquin Valley of California. Gins made final repairs. No ginning was reported. Supima conducted an in-person meeting for west Texas American Pima producers.
Trading
Desert Southwest
- No trading activity was reported.
San Joaquin Valley
- No trading activity was reported.
American Pima
- No trading activity was reported.
