Spot quotations averaged 66 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 82.20 cents per pound
for the week ending Thursday, February 16, 2023. The weekly average was down from 82.86
cents last week, and from 118.69 cents reported the corresponding period a year ago.
Daily average quotations ranged from a high of 83.66 cents Tuesday, February 14 to a
low of 79.96 cents Thursday, February 16. Spot transactions reported in the Daily Spot
Cotton Quotations for the week ended February 16 totaled 31,938 bales. This compares to
21,683 bales reported last week and 29,496 spot transactions reported the corresponding
week a year ago. Total spot transactions for the season were 423,646 bales compared to
1,382,242 bales the corresponding week a year ago. The ICE May settlement price ended
the week at 82.00 cents, compared to 85.94 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, overcast conditions over the weekend gave way to clear skies late in the period
as a high pressure system moved across Alabama, the Florida Panhandle, and Georgia.
Daytime high temperatures in the low 50s rose into the 60s and 70s late in the week.
Widespread thunderstorms brought moisture to areas across the region early in the period.
Precipitation totals measured from 1 inch along the Gulf Coast to 3 inches along Atlantic
coastal areas. The moisture eased droughty conditions in areas of the Florida Panhandle
and south Georgia. Outside activities were interrupted due to the wet weather. Ginning
was quickly nearing the end of the season in Alabama and Georgia; a few gins remained on
gin days as they waited for modules to accumulate on gin yards.
Similar conditions prevailed across the upper Southeast during the period. Overcast, rainy
conditions over the weekend cleared as a high pressure system moved across the region and
sunny skies prevailed the remainder of the week. Daytime high temperatures in the 40s and
50s warmed into the 60s and 70s later in the week. Cotton growing areas received around
1 to 3 inches of precipitation with the heaviest accumulations observed along eastern
South Carolina. The moisture improved droughty conditions along the coastal Carolinas.
Fieldwork was delayed due to the wet conditions. Ginning neared completion; a few gins 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 second quarter through fourth quarter delivery. Mill buyers also inquired
for a light volume of color 31, leaf 3, and staple 36 for first quarter through fourth
quarter delivery. No sales were reported. Although reports indicated yarn demand improved
slightly for late third quarter, yarn remained lackluster and plants remained idle at some
locations. 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
Heavy volume mixed lots containing mostly color 31-51, leaf 3 and 4, staple 35 and longer,
mike 37-49, strength 28-32, and uniformity 80-83 sold for around 86.00 cents per pound, FOB
car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
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.
Weather conditions fluctuated from windy and cold to windy, overcast, and mild. Daytime high
temperatures were in the 40s to 70s. Overnight lows were in the 30s to 60s. Light,
scattered rain showers throughout the week brought less than 1 inch of precipitation
to the Memphis territory. High wind advisories were issued by the National Weather Service
for portions of southeast Arkansas, but no damage was reported. Several gins continued
annual pressing operations in the Memphis territory. According to the U.S. Drought Monitor,
regional soil moisture was rated normal; many areas reported standing water in low-lying
fields. Virtual and in-person regional industry meetings were attended by all interested
parties. Producers carefully monitored the prices of competing commodities. According to
local distributors, the cost of inputs, particularly nitrogen fertilizers, has dropped
compared to last year, and adequate supplies are on-hand to meet demand.
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.
Cloudy and windy weather conditions with wind gusts of 20 to 30 miles per hour dominated
the Louisiana territory. Daytime high temperatures were in the 40s to low 60s. Light,
scattered rains brought less than 1 inch of precipitation. High wind advisories were
issued and monitored by the National Weather Service within parts of the region. According
to the National Weather Service, northeast Louisiana and central Mississippi were
affected by the strong winds and erratic weather conditions. 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. Producers continued to monitor
commodity prices and the cost of inputs, particularly nitrogen fertilizers. Local
experts indicated that fewer cotton acres were likely to be planted compared to last
season, due to the low price of the ICE December futures contract. According to local
distributors, the cost of inputs, particularly nitrogen fertilizers, has dropped compared
to last year, and adequate supplies are on-hand to meet demand.
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 light. Average local spot prices were lower. Producer interest in forward
contracting was moderate. Trading of CCC-loan equities was inactive. Foreign mill
inquiries were moderate. Interest was best from China, Pakistan, and Taiwan. The
trading month rolled from March-23 to May-23. The community COVID-19 transmission
rate was medium in Nueces County, according to the Centers for Disease Control and Prevention.
Intermittent rainfall was received in the Upper Coast, Coastal Bend, and in parts of
the Rio Grande Valley. Fields were prepared and ready to receive precipitation. Planting
was expected to begin next month in the Coastal Bend. Cotton will be planted soon in the
Rio Grande Valley. Producers finalized seed orders. The Blackland Prairies were soggy
following recent rainfall, but were quickly drying. Regional and national level meetings were held.
In Kansas, mostly cloudy, cold conditions prevailed with daytime temperature highs in the
mid-30s to low 60s. Producers ordered planting seed. In Oklahoma, the cold front brought
more than 1 inch of beneficial rainfall to some locations. Wind gusts were reported up to
80 mph in the Panhandle. Blowing dust caused zero visibility on roadways. Although the
rain was encouraging, lakes and ponds continue to remain low. There was no cotton fieldwork
reported, but herbicide will be applied to the wheat crop after the soils firm.
West Texas
Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was
moderate. Average local spot prices were lower. Producer interest in forward contracting
was moderate. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate.
Interest was best from China, Pakistan, and Taiwan. The trading month rolled from March-23 to
May-23. The community COVID-19 transmission rates were low in Lubbock, Dawson, and Taylor
Counties, according to the Centers for Disease Control and Prevention.
A widespread beneficial thunderstorm brought precipitation to the region on February 13,
ahead of windy conditions. A few locations in the Panhandle received snowfall. Amounts were
generally light with heavier amounts received in the Rolling Plains. A high wind watch was
issued by the National Weather Service for parts of the region on February 14, with daytime
temperatures in the mid-40s to mid-70s. Overnight low temperatures were in the teens to
mid-40s. Sustained wind was 35 to 45 mph with occasional peak gusts over 70 miles per hour.
Fieldwork was underway when the winds calmed. Some fields were plowed, and wheat was
irrigated under pivots. Producers reviewed trail data on seed varieties to determine which
varieties to order. Regional marketing meetings and national level conferences were attended.
Trading
East Texas
In Kansas, mixed lots containing a moderate volume of color 23 and better, leaf 2-4, staple 33-35,
mike 41-48, strength 28-35, uniformity 79-82, and 50 percent extraneous matter sold for 76.00
to 77.75 cents per pound, FOB car/truck (compression charges not paid).
In Oklahoma, lots containing a light volume color 32 to 43, leaf 3 to 5, staple 36-38, mike 37-44,
strength 32-37, uniformity 79-82, and 75 percent extraneous matter sold for 76.50 to 77.75 cents,
same terms as above.
Mixed lots containing a moderate volume of color 41 and 51, leaf 3-6, staple 36-38, mike 28-39,
strength 28-32, uniformity 77-80, and 75 percent extraneous matter sold for 71.00 to 72.50 cents
same terms as above.
West Texas
A heavy volume containing color 31 and better, leaf 3 and better, staple 37, mike averaging 42.8,
strength averaging 32.6, and uniformity averaging 80.7 sold for around 86.75 cents per pound,
FOB car/truck (compression charges not paid).
Mixed lots containing a heavy volume of color 31 and better, leaf 4 and better, staple 36-37, mike 37-50,
strength 30-34, and uniformity 79-84 sold for 82.00 to 84.75 cents, same terms as above.
Mixed lots containing a heavy volume of color 31 and better, leaf 2-4, staple 34 and 35, mike 33-49,
strength 27-31, and uniformity 78-81 sold for 80.00 to 81.50 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. No
forward contracting or domestic mill activity was reported. Average local prices were lower.
Foreign mill inquiries were light.
Daytime high temperatures in the low 70s early in the reporting period dropped into the mid-50s
to low 60s as a strong cold front entered central Arizona mid-week. Freeze warnings were issued.
Windy conditions were prevalent. Wind speeds were around 35 miles per hour. Heavy snowfall was
received in higher elevations. A dusting of snow and frost were on peaks northeast of Phoenix.
Scattered showers were reported throughout the week, with precipitation totals near one-third of
an inch. Ginning continued uninterrupted. Variable temperatures continued in New Mexico and
El Paso, TX. High temperatures were in the 40s to 60s during the week. Overnight low temperatures
were in the mid-20s to low 40s. Wind advisories were in effect as the storm system move through.
Gusty winds from 25 to 35 miles per hour were reported in the territory. Little measurable moisture was received.
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.
Daytime high temperatures were in the mid-50s to low 60s as another storm moved through the state.
Freeze warnings were active as overnight lows dropped into the high 20s to low 30s. Traces of
moisture were received on the Valley floor. Many producers, commodity industries, central Valley
food banks, local politicians, California members of Congress, as well as the Speaker of the
House Kevin McCarthy attended and participated in the first official Farm Bill listening session.
The session was conducted by Chairman GT Thompson of the House Committee on Agriculture at the
World Ag Expo in Tulare, CA. The California Department of Water Resources reported the statewide
snowpack was 189 percent of normal for February 15, and 138 percent of the April 1 average.
The average snow water equivalent is just over 36 inches.
American Pima (AP)
Spot cotton trading was slow. Supplies were heavy. Demand was light. A few producers offered
cotton in the period, with few sales reported. Sources reported some offers received no bids.
Most producers were holding onto cotton waiting for better prices to return. No forward
contracting or domestic activity was reported. Average local spot prices were lower. Foreign
mill inquiries were light. Interest was best from China. Lack of demand put pressure on U.S. prices.
Daytime high temperatures dropped into the 40s to 60s as a mostly dry, cold winter storm entered
the Far West region mid-week. Cold, overnight temperatures were in the high 20s to mid-40s. Freeze
warnings were in effect late in the reporting period. Around one-third of an inch of moisture
was deposited in central Arizona. Traces of moisture was received in the San Joaquin Valley (SJV)
of California. Higher elevations of Arizona and California received snow. Producers in Yuma, AZ
prepared fields for planting. Local sources reported that producers intended to plant more AP.
In the SJV, producers have planting options. Competitive pricing of row crops like black-eyed
peas, corn, garlic, safflower, and tomatoes. Safflower and tomatoes contracts were reported at
record high contract pricing. Arizona, California, and west Texas gins continue to operate.
Strong winds from 35 to 45 miles per hour were reported in west Texas. Little moisture was
received in the period.
Trading
Desert Southwest
A heavy volume of Arizona cotton color mostly 41 and better, leaf 4 and better, staple 36
and longer traded for 100 to 600 points off ICE March futures, uncompressed, FOB warehouse.
San Joaquin Valley
No trading activity was reported.
American Pima
A moderate volume of color 2, leaf 2, staple 48 and longer was sold.
