Spot quotations averaged 247 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 79.73 cents per pound for the week ending
Thursday, February 23, 2023. The weekly average was down from 82.20 cents last week, and from
118.32 cents reported the corresponding period a year ago. Daily average quotations ranged
from a low of 79.46 cents Friday, February 17 to a high of 80.12 cents Thursday, February 23.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended February 23
totaled 12,506 bales. This compares to 31,938 bales reported last week and 34,584 spot transactions
reported the corresponding week a year ago. Total spot transactions for the season were 436,152
bales compared to 1,416,826 bales the corresponding week a year ago. The ICE May settlement price
ended the week at 82.16 cents, compared to 82.00 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.
A mix of sunny to mostly cloudy conditions prevailed across the upper Southeast during the
period. Daytime high temperatures in the 50s entering the weekend warmed into the 70s and 80s
as the week progressed. Scattered thunderstorms brought moderate rainfall to areas throughout
north Alabama and north Georgia. Weekly accumulated precipitation totals measured 1 to 3 inches in
these areas. Precipitation totals measured trace amounts to around one-half of an inch in areas
of south Georgia. No precipitation was received along the Florida Panhandle and abnormal dryness
expanded along the west coast of the Peninsula, according to the U.S. Drought Monitor. Fieldwork
remained delayed due to wet conditions in areas that received the heaviest precipitation. Some
gins remained on gin days in Alabama and Georgia.
Sunny to cloudy conditions were observed across the upper Southeast during the period. Daytime high
temperatures in the 50s warmed into the 70s and 80s late in the week. Light localized shower
activity was received in some areas, but mostly dry conditions were observed throughout the week.
Abnormal dryness persisted in portions of coastal North Carolina, according to the U.S. Drought
Monitor. Fieldwork was uninterrupted. 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. No sales were reported. Mill buyers also inquired
for a light volume of color 31, leaf 3, staple 36 for first quarter through fourth quarter delivery.
Reports indicated yarn demand improved slightly for late third quarter demand, but remained lackluster;
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
A moderate volume of color 21-41, leaf 4 and better, staple 35 and longer, mike 35-49, strength 28-32,
and uniformity 80-82 sold for around 84.75 cents per pound, FOB car/truck (Rule 5, compression charges paid).
A moderate volume mixed lot containing color mostly 41 and 51, leaf mostly 3 and 4, staple 35 and longer,
mike 35-49, strength 28-32, and uniformity 80-82 sold for around 81.50 cents, 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.
Climatic conditions were unusually warm compared to historical averages. Daytime high temperatures were
in the upper 70s; nearly 20 degrees above the average of 58 degrees for this time of the year. Overnight
lows in the 40s to 60s were also well about average. 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 the region; some damage to trees and power lines in isolated areas was reported. Several
gins continued annual pressing operations. According to the U.S. Drought Monitor, regional soil moisture
was rated normal; many areas reported standing water everywhere. Virtual and in-person regional industry
meetings were attended by all interested parties, including the Mid-South Farm and Gin Show. Producers
carefully monitored the prices of competing commodities. According to local experts, the cost of inputs and
the price of competing crops will influence planting decisions. Cotton acreage is expected to drop compared to last season.
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. Cotton was being delivered to fulfill contracts; no new sales were reported. Producers were
not encouraged by current price levels.
Daytime high temperatures were in the low 40s to low 60s with wind gusts of 70 mph. Light and scattered
rains brought less than 1 inch of precipitation. 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. Virtual and in-person regional industry meetings were attended by all interested parties,
including the Louisiana Cotton and Grain Associationís annual meeting, held February 16 in Monroe, Louisiana,
and the Mid-South Farm & Gin Show in Memphis, Tennessee.
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 moderate. 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 active. Interest was best from China,
Pakistan, and Vietnam.
Limited cotton planting was initiated in the Rio Grande Valley and will expand in the next two weeks.
Producers will wait to plant cotton after finishing corn and sorghum sowing in south Texas including
the Coastal Bend and Upper Coastal counties. Cotton planting will become active in March. Producers
hoped to receive more rainfall ahead of sowing cotton.
In Kansas, weather was variable with daytime temperatures were in the low 30s to mid-60s, and overnight
lows in the single digits to mid-50s. Mostly sunny, windy conditions prevailed with a few locations
receiving less than a quarter of an inch of spotty rainfall. The entire region would benefit from a
period of slow soaking rain to recharge soil moisture. Ginning was completed in Oklahoma. Local pre-plant
meetings were attended.
West Texas
Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was light.
Average local spot prices were lower. Producer interest in forward contracting was moderate. Trading of
CCC-loan equities was slow. Foreign mill inquiries were active. Interest was best from China, Pakistan, and Vietnam.
Multiple warnings, watches, and advisories were issued by the National Weather Service for inclement weather
conditions in the middle of the reporting period. Sustained winds at 30 to 40 miles per hour with gusts
near 70 miles per hour were reported. Blowing dust limited visibility and slowed fieldwork. Daytime
temperature highs were in the upper 30s to mid-90s, and overnight lows were in the 20s to 50s. The
entire area needs a period of slow-soaking rainfall to recharge soil moisture. Ginning neared completion
with a few gins submitting samples for classification services. National and regional cotton conferences
and meetings were attended.
Trading
East Texas
In Kansas, mixed lots containing a light volume of color 21 and 31, leaf 3-5, staple 32 and 33, mike 30-43,
strength 27-29, and uniformity 77-79 sold for 76.00 to 77.75 cents per pound, FOB car/truck (compression charges not paid).
In Oklahoma, a lot containing a light volume of color 41, leaf 2 and 3, staple 5, mike averaging 39.8,
strength averaging 29.3, uniformity averaging 79.7, and 25 percent extraneous matter sold for around 75.50
cents, same terms as above.
West Texas
A lot containing a heavy volume of mostly color 21 to 41, leaf 2-5, staple 38, mike averaging 38.6, strength
averaging 30.3, and uniformity averaging 80.4 sold for around 81.50 cents per pound, FOB car/truck (compression
charges not paid).
A moderate volume of lots containing color 21 and 31, leaf 4 and better, staple 36-38, mike 39-48, strength
27-37, and uniformity 78-83 sold for 78.25 to 79.00 cents, same terms as above.
Mixed lots containing a moderate volume of color 21 to 42, leaf 2-6, staple 37 and 38, mike 35-51,
strength 28-35, uniformity 77-83, and 50 percent extraneous matter sold for 75.50 to 77.25 cents, same terms as above.
A moderate volume of color 41 and better, leaf 5 and better, staple 38, mike 29-36, strength 28-33,
and uniformity 76-81 sold for around 72.25 cents, same terms as above.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. 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.
Temperatures in the mid-70s early in the reporting period dropped into the high 50s as a strong cold
storm front brought partly cloudy conditions and strong winds into Arizona late week. No rainfall was
received in central Arizona. Wind advisories continued in the period. Winds were clocked around
25 miles per hour, with stronger gusts up to 35 miles per hour. Snowfall in higher elevations closed
a nearly 200 mile stretch of Interstate 40 on February 22. The Arizona snowpack is 146 percent of normal,
according to SNOFLO data, with approximately 8 to 14 inches of snow expected into the weekend. More gins
finished up the 2022 season.
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.
A strong storm brought winds, rain, and snow to California in the period. Blustery winds moved
through central California with sustained wind speeds of 25 to 35 miles per hour mid-week. Daytime
temperatures in the low to mid-60s dropped into the high 40s as the sun gave way to cloudy conditions.
Overnight lows were in the low 30s. Scattered showers were received with some locales reporting isolated
thunderstorms, hail, and snow flurries. The storm maintained the Sierra Nevada Mountain snowpack.
The daily reading for February 22 showed the statewide snowpack at 173 percent of normal, with 36.7 inches
of average snow water equivalent, according to the California Department of Water Resources. Even the
Coastal Ranges on the western edge of California received snow. More rain and snow are expected into the weekend.
American Pima (AP)
Spot cotton trading was inactive. Supplies were heavy. Demand was light. 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.
High temperatures dropped into the 40s to 60s. A strong winter storm system entered the Far West late in
the period. Powerful winds accompanied the storm system felling trees and blowing dust. Scattered showers
and isolated thunderstorms brought varied amounts of precipitation to the San Joaquin Valley (SJV) of California.
Snow flurries were reported in the northern SJV. This storm was a snow maker. Higher elevations of Arizona
and California received fresh snow, with more to come. Ginning continued.
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
