Spot quotations averaged 137 points lower than the previous week, according to the USDA, Agricultural
Marketing Serviceís 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 83.84 cents per pound for the week ending Thursday, February 2, 2023. The weekly average
was down from 85.21 cents last week, and down from 122.77 cents reported the corresponding period a year
ago. Daily average quotations ranged from a high of 84.68 cents Friday, January 27 to a low of 82.89 cents
Monday, January 30. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended
February 2 totaled 43,418 bales. This compares to 60,998 bales reported last week and 121,095 spot
transactions reported the corresponding week a year ago. Total spot transactions for the season were
370,025 bales compared to 1,300,780 bales the corresponding week a year ago. The ICE March settlement
price ended the week at 86.39 cents, compared to 87.50 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was moderate.
Average local spot prices were lower. Trading of CCC-loan equities was inactive.
Cloudy and overcast conditions prevailed across the lower Southeast during the period. Daytime
high temperatures were in the 60s and 70s. Isolated thunderstorms brought light to moderate rain
across the region throughout the week. Weekly accumulated rainfall totals measured 1 to 3 inches.
The moisture improved droughty conditions in cotton growing areas of south Georgia. Early morning
fog was observed. Fieldwork and outside activities were delayed due to soft soil conditions. Ginning
was complete for the season in Florida. In Alabama and Georgia, ginning was nearing completion and
some gins remained on gin days.
Similar conditions were observed across the upper Southeast during the period. Daytime high temperatures
were mostly in the 60s. Rain showers moved across the Carolinas and Virginia throughout the week.
Weekly accumulated precipitation totals measured from 1 to 3 inches. The moisture improved from abnormally
dry to moderate drought conditions in cotton growing areas of the eastern Carolinas and Virginia.
Fieldwork was interrupted due to the wet weather. Ginning was winding down; a few gins in South Carolina
remained on gin days.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for
April through October delivery. No sales were reported. Yarn demand remained lack luster and mills reduced
operating schedules. Mill buyers maintained a cautious undertone. Mills continued to produce personal protective
equipment for frontline workers and consumers.
Demand through export channels was light to moderate. Agents throughout the Far East inquired for any discounted styles of cotton.
Trading
Even-running lots containing color 31, leaf 2 and 3, staple 37 and 38, mike 35-49, strength 29-31, and
uniformity 80-82 sold for around 92.25 cents per pound, FOB car/truck (Rule 5, compression charges paid).
Heavy volume mixed lots containing color mostly 41, leaf 3-5, staple 35-38, mike 35-49, strength 28-30,
and uniformity 79-82, sold for around 200 points on ICE March futures, FOB car/truck, Georgia terms (Rule 5,
compression charges paid, 30 days free storage).
A moderate volume of color mostly 31 and 41, leaf 2-4, staple 35-37, mike 33-47, strength 28-31, and
uniformity 80-82 sold for around 25 points on ICE March futures, same terms as above.
A light volume of color 41 and 51, leaf 3 and 4, staple 37, mike 43-47, strength 30-32, and uniformity
82-83 sold for around 250 points off ICE March futures, same terms as above.
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.
Cotton was being delivered to fulfill contracts; no new sales were reported.
The National Weather Service issued an ice storm warning over several days as a severe winter system swept through
the region. Cold temperatures and icy conditions caused most schools and many businesses to close throughout the
Memphis territory for the duration of the storm. Daytime high temperatures were in the 20s and 30s during the period.
Overnight lows were in the teens and 20s. Nearly 4 inches of precipitation was reported in the Memphis territory,
much of it in the form of frozen rain. Frozen slush and ice on roads made driving hazardous. Several gins
continued operating in the Memphis territory. According to the U.S. Drought Monitor, regional soil moisture was
rated normal. Virtual and in-person regional industry meetings were attended by all interested parties. Producers
carefully monitored the prices of competing commodities and the cost of inputs, particularly nitrogen fertilizers.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was good. Average local spot
prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was
being delivered to fulfill contracts; no new sales were reported. Producers were encouraged as prices rebounded recently.
Seasonably cool weather conditions gave way to colder temperatures during the reporting period as a strong winter
storm front moved through the region. Daytime high temperatures dropped into the 30s before rebounding to the 50s
late in the period. Overnight lows were in the 20s and 30s. Less than 2 inches of precipitation were reported in
most areas. Virtual and in-person regional industry meetings were attended by all interested parties. According
to the U.S. Drought Monitor, soil moisture was rated normal throughout the territory. Producers continued to
monitor commodity prices and the cost of inputs, particularly nitrogen fertilizers. Local experts stated that
producers were inclined to plant fewer cotton acres and more corn compared to last season due to low price of the
ICE December contract.
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 active. Supplies and producer offerings were heavy. Demand was good. Average local spot
prices were lower. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was
slow. Foreign mill inquiries were moderate. Interest was best from China, Taiwan, and Pakistan. The community
transmission rate was medium in Nueces County, according to the Centers for Disease Control and Prevention.
A cold front brought rainfall that left soils soggy and interrupted fieldwork in the Upper Coast and Coastal Bend.
Some locations received more than three-fourths of an inch of precipitation. Daytime high temperatures were in
the low 40s to mid-70s. Overnight temperature lows were in the 30s to 60s. Around one-half of an inch of beneficial
rainfall was received in the Rio Grande Valley ahead of cotton planting. Producers had begun to plant corn.
Heavy icy accumulations caused treacherous roadway conditions in the Blackland Prairies as far south as Austin
and San Antonio. All fieldwork was at a standstill.
Ginning concluded in Kansas. Mostly cloudy, cold conditions prevailed with daytime temperature highs in the mid-20s
to mid-60s. Some locations received more than 1 inch of rainfall. In Oklahoma, periods of freezing rain brought
more than 1 inch of wintry precipitation to some locations. Icy conditions negatively affected road travel and
slowed ginning progress.
West Texas
Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was good. Average local spot
prices were lower. Producer interest in forward contracting was moderate, but no contracts were reported. Trading
of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Taiwan,
and Pakistan. The community transmission rates were low in Lubbock and Taylor counties, and medium in Dawson
County, according to the Centers for Disease Control and Prevention.
Freezing rain and snowfall slowed ginning progress with daytime temperatures in the mid-20s to low 50s and
overnight low temperatures in the single digits to mid-40s. A strong cold front brought wintry precipitation on
January 28. A second arctic airmass moved into the region a few day later and a third winter storm brought more
wintry precipitation on February 1. Schools and some businesses were closed due to inclement weather. The Lubbock,
Lamesa, and Abilene Classing Officesí hours of operations were also altered due to inclement weather. Travel
conditions were periodically treacherous. Soils remained droughty and any precipitation received is beneficial.
Producers took advantage of inclement weather and attended a training to obtain private pesticide applicator
licenses ahead of the planting season. Local cotton conferences and marketing meetings were held.
Trading
East Texas
In Texas, lots containing a light volume of color 22 and better, leaf 3 and better, staple 34 and 35, mike 38-47,
strength 26-30, and uniformity 79-80 sold for 82.00 to 84.25 cents per pound, FOB warehouse (compression charges not paid).
In Kansas, mixed lots containing a moderate volume of color 22 and better, leaf 2-4, staple 35, mike 34-44,
strength 28-33, and uniformity 78-81 sold for 84.25 to 85.00 cents, FOB car/truck (compression charges not paid).
In Oklahoma, lots containing a light volume of color 21 and 31, leaf 2 and 3, staple 37, mike 38-40, strength 31-33,
and uniformity 78-80 sold for around 87.00 cents, same terms as above.
A mixed lot containing a heavy volume of color 44 and better, leaf 2-8, staple 35, mike 27-49, strength
24-35, uniformity 75-83, and 75 percent extraneous matter sold for around 76.50 cents, same terms as above.
A heavy volume of mixed lots containing color 31-43, leaf 2-6, staple 30-38, mike 26-41, strength 28-32,
uniformity 76-81, and 50 percent extraneous matter sold for 75.50 to 74.50 cents, same terms as above.
A light volume of CCC-loan equities traded for around 29.75 cents.
West Texas
Even-running lots containing a heavy volume of color 21 and 31, leaf 2-4, staple 36, mike 36-45,
strength 28-36, uniformity 79-83, and 25 percent extraneous matter sold for 85.50 to 87.50 cents per pound,
FOB car/truck (compression charges not paid).
A mixed lot containing a heavy volume of color 32 and better, leaf 5 and better, staple 36, mike 23-49,
strength 25-34, uniformity 75-84, and 25 percent extraneous matter sold for around 81.50 cents, same terms as above.
A heavy volume of color 31-42, leaf 2-7, staple 35, mike averaging 41.3, strength averaging 29.8,
uniformity averaging 80.4, and 100 percent extraneous matter sold for around 79.75 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 light.
Producers delivered previously contracted cotton to merchant and cooperative marketing pools.
Producers inquired for 2023-crop contracts. No contracts were signed. No domestic mill activity
was reported. Average local prices were lower.
Clouds and scattered showers brought a little moisture to western Arizona early in the period.
Temperatures were in the 50s and 60s. Overnight lows were in the 40s. Ginning was steady. Due to the
substantial Arizona snowpack, many watersheds will have an increase to water capacity. One reservoir that
is beneficial to growers is the San Carlos. The San Carlos Reservoir increased over 100,000 acre/feet since
November 2022. Daytime high temperatures were in the 50s and 60s in New Mexico and El Paso, Texas. Overnight
lows were in the high 20s to mid-30s. No rainfall was received in the period.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill
activity was reported. Average local spot prices were lower. Foreign mill inquiries were light.
Freeze warnings were active in the period. Temperatures were mostly in the low 50s and overnight lows were
in the 30s. Dense fog advisories were issued during the period. Rain in January allowed the California Department
of Water Resources to increase water allocations to 30 percent from 5 percent in December for State Water Project
deliveries. The largest allocation since 2017. This allocation is based on current reservoir levels and not
the snowpack. The Visalia Classing Office discontinued the night shift on January 27.
American Pima (AP)
Spot cotton trading was slow. Supplies were heavy. Demand was light. Producers inquired for 2023-crop
contracts. No forward contracting or domestic activity was reported. Average local spot prices were steady.
Foreign mill inquiries were light. Lack of demand put pressure on U.S. prices.
Temperatures were in the 50s to 60s in the Far West. Freeze warnings were issued throughout the region.
Overnight lows were in the 20s to 30s. Snowpack levels are bountiful this year for Arizona and California. Many
reservoirs experienced increased capacity levels not seen in years. Water allocations in some production areas
were increased. Producers considered row crop planting options. Ginning continued.
Trading
Desert Southwest
A light volume of Arizona cotton color 21 and 31, leaf 2 and better, staple 39 and longer, mike averaging 44.3,
strength averaging 32.9, and uniformity averaging 82.1 sold for around 75 points on ICE March futures, uncompressed, FOB warehouse.
A heavy volume of mostly color 21, leaf 2 and better, staple 36 and longer, mike averaging 46.2, strength
averaging 32.4, and uniformity averaging 81.6 sold for around 55 points off ICE March futures, same terms as above.
San Joaquin Valley
No trading activity was reported.
American Pima
A moderate volume of mostly color 1, leaf 1 and 2, staple 48 and longer was sold.
