Spot quotations averaged 268 points higher 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 82.41 cents per pound for
the week ending Thursday, March 2, 2023. The weekly average was up from 79.73 cents last
week, but down from 117.63 cents reported the corresponding period a year ago. Daily average
quotations ranged from a high of 83.45 cents Wednesday, March 1 to a low of 81.25 cents Thursday,
March 2. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended
March 2 totaled 31,860 bales. This compares to 12,506 bales reported last week and 42,526
spot transactions reported the corresponding week a year ago. Total spot transactions for
the season were 468,012 bales compared to 1,459,352 bales the corresponding week a year ago.
The ICE May settlement price ended the week at 83.71 cents, compared to 82.16 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was active. Supplies and producer offerings were moderate.
Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive.
Mostly cloudy conditions prevailed across the lower Southeast during the period. Daytime
high temperatures were in the 70s and 80s. Scattered showers brought moisture to portions
of north Alabama and north Georgia during the week. Precipitation totals measure around
one-half of an inch to one inch of moisture. High wind advisories were issued by the
National Weather Service as a storm system moved across the region late in the week.
Gulf coastal areas missed rainfall and abnormal dryness expanded in the Florida Panhandle
and southwest Georgia, according to the U.S. Drought Monitor. Fieldwork advanced without
interruption. A few gins remained on gin days in Alabama and Georgia.
A mix of clouds and sun was observed across the upper Southeast during the period. Daytime
high temperatures dipped into the 50s over the weekend before warming back into the 80s later
in the week. Stray scattered showers brought light localized precipitation to some cotton growing
areas. Precipitation totals measured from trace amounts to around one-quarter of an inch of moisture.
Abnormally dry conditions persisted in portions of coastal North Carolina, according to the U.S.
Drought Monitor. Fieldwork advanced without interruption. 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 June through October delivery. No additional sales were reported. 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 moderate. Agents for mills in India inquired for a moderate
volume of color 21, leaf 2, and staple 38 for March through May shipment. Vietnamese mill buyers
inquired for a moderate volume of color 31, leaf 3, and staple 36 and 37 for March shipment.
Trading
A heavy volume mixed lot containing color mostly 31 and 41, leaf 2-4, staple 36 and longer,
mike 35-49, strength 29-33, and uniformity 80-83 sold for around 88.00 cents per pound, FOB
car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
A moderate volume of color 41 and 51, leaf 3-5, staple 35 and longer, mike 35-49, strength 29-31,
and uniformity 80-83 sold for around 86.00 to 86.75 cents, FOB car/truck (Rule 5, compression charges paid).
Similar lots containing color 41 and staple 36 and longer sold for around 87.25 cents, same terms as above.
South Central Markets Regional Summary
North Delta
Spot cotton trading was slow. Supplies of available cotton were light. Demand was very light.
Average local spot prices were higher. Trading of CCC-loan equities was slow. No forward contracting
was reported. Cotton was being delivered to fulfill contracts.
Mild temperatures, harsh winds, and sunny conditions in many areas of the North Delta gave way to heavy
rainfall late in the reporting period. Daytime high temperatures were in the low 80s with nighttime
lows in the low 40s to mid-60s. Both daytime and nighttime temperatures were considerably higher than
the historical monthly average. Much of the North Delta region received thundershowers over the course
of several days throughout the period. Storm systems included heavy winds and the National Weather
Service issued wind advisories, flood watches, and tornado alerts early in the week. Accumulated
precipitation totals in parts of the North Delta were recorded from one-half to three and one-half inches.
Several gins continued annual pressing operations in the Memphis territory. According to the U.S. Drought
Monitor, regional soil moisture was rated normal. Local experts reported standing rainwater and muddy
fields have kept producers from fieldwork. Producers continued to watch competing commodities and input
costs. Local experts indicated that a smaller number of cotton acres are likely to be planted in the
coming season compared to last season due to factors including weather, field conditions, and ICE Futures
prices. Virtual and in-person regional industry meetings were attended by all interested parties, including
the Mid-South Farm and Gin Show on February 24 and 25.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very light.
Average local spot prices were higher. 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 hoped
to see higher prices before making commitments.
Mostly cloudy, sunny skies dominated the weather pattern in the South Delta region early in the week.
Daytime temperature highs were in the mid-80s with nighttime temperatures in the mid-to-upper 40s. Thunderstorms
later in the period brought heavy winds to parts of northern Louisiana and produced less than 1 inch of
precipitation. The National Weather Service announced wind advisories and severe weather advisories. According
to the U.S. Drought Monitor, soil moisture was rated normal with the exception of part of the lower half of
southern Louisiana. Commodity prices and input costs were monitored as producers made decisions
regarding the cotton acreage to be planted. Expected acreage of cotton to be planted in the coming
season is forecasted to be lower than in the previous season, but producers were still taking all
factors into consideration. Virtual and in-person regional industry meetings were attended by all
interested parties, including the Mid-South Farm and Gin Show on February 24 and 25.
Trading
North Delta
A lot containing a moderate volume of mostly color 21 and 31, leaf 1 to 4, staple 37 or longer, mike 35-49,
strength averaging 30.9, and uniformity averaging 81.5 sold for 150 points on May ICE Futures, FOB
car/truck (Rule 5, compression charges paid).
A light volume mixed lot of mostly color 42 and better, leaf 2 to 4, staple 37 and 38, mike 33-42, strength
averaging 29.0, and uniformity averaging 82.2 sold for around 550 points off May ICE Futures, same terms as above
A moderate volume of CCC-loan equities traded for 24.00 to 26.00 cents.
South Delta
No trading activity was reported.
Southwestern Markets Regional Summary
East Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate.
Producers price ideas were firm. Some bids were rejected. Sales were good for any discounted qualities.
Producers inquired about forward contracts, with some contracts signed. Most producers were hopeful
that prices will rebound before they need to make a commitment. The May ICE futures market trended
155 points higher than the previous week. Average local spot prices were higher. Foreign mill inquiries were moderate.
Temperatures were mostly in the 90s for the Rio Grande Valley (RGV). Fire watches were in effect for
dry conditions and low humidity, due to several weeks of no measurable moisture. Precipitation levels
are below normal for this area. A good widespread rainfall is needed. According to the U.S. Drought
Monitor, RGV counties increased dryness in the moderate-to-severe drought categories. RGV seedlings
are up, irrigated acreage was planted first. Dryland planting began in the period. Sources estimated
10 to 15 percent of the crop was planted. Grain sorghum and corn is popular to plant in south Texas.
Producers will use crop rotations as a 50/50 split with cotton. Initial planting began in the Coastal
Bend, but most growers were waiting for a planting rain. They have until April 15 to put in a crop.
Soybeans were considered in the Upper Coast.
Storms raged through Kansas mid-week. Strong winds, rain, and hail were reported. Tornados were reported
in central Kansas. Some fields contained standing water. The 4th Annual Great Plains Conference was held
in Pratt, KS. Various cotton topics were discussed. In Oklahoma, a fast-moving storm system brought
straight line winds and tornados mid-week. A tornado was reported in the southwestern area near the Oklahoma
border. Blowing dust was a problem. Little measurable moisture was received. Cotton-growing areas of
the state are behind on rainfall. Producers, who planted wheat as a cover crop, are now considering
keeping the wheat crop to harvest or going in with grain sorghum for crop rotation. Crop rotation is good for soil.
West Texas
Spot cotton trading was active. Supply and producer offerings were heavy. Demand was moderate.
Producers price ideas were firm to higher. Some bids were rejected for qualities color 31 and better,
leaf 3 and better, and staple 36 and longer. Producers were willing to wait for prices to get into the
high 80s to 90 cents. Sales were good for any discounted qualities. The May ICE futures market gained
155 points over the previous week. Average local spot prices were higher. Foreign mill inquiries were
moderate and mostly for off-qualities. Interest was best from Pakistan.
Unseasonably warm temperatures continued with daytime highs in the 70s. Overnight lows were mostly in the 40s.
A strong storm system entered the area mid-week bringing very strong winds and dust, with very little moisture.
The Lubbock area was under a red flag warning and fire watch, due to strong winds and low humidity. Blowing
dust was a problem. Few locales received the moisture that was received in the period. Overall, February
was a dry month. A good slow soaking rainfall is needed for the region. Cotton classing was completed.
Trading
East Texas
In Texas, a light volume of mostly color 31 and better, leaf 3 and better, staple 32 and 33, mike averaging
50.8, strength averaging 30.9, and uniformity averaging 80.9 sold for around 70.50 cents per pound, FOB
warehouse (compression charges not paid).
A moderate volume of Kansas cotton color mostly 21 and better, leaf 2 and 3, staple 36 and longer, mike
averaging 39.3, strength averaging 33.6, and uniformity averaging 81.2 sold for around 80.00 cents, FOB car/truck
(compression charges not paid).
A light volume mixed lot containing mostly color 31, leaf 4, staple 37, mike averaging 35.8, strength
averaging 30.1, uniformity averaging 80.6, with 100 percent extraneous matter sold for around 74.00 cents, same terms as above.
Trading
East Texas
In Oklahoma, a light volume of color 21 and 31, leaf mostly 2 and better, staple 36-38, mike averaging 45.0,
strength averaging 29.3, and uniformity averaging 80.1 sold for around 85.00 cents, same terms as above.
A moderate volume of mixed lots mostly color 31 and better, leaf 4 and better, staple 35 and longer, mike
averaging 41.4, strength averaging 31.8, uniformity averaging 79.9, with 50 percent extraneous matter sold
for around 81.00 cents, same terms as above.
A light volume of mostly color 41, leaf 3 and 4, staple 34 and longer, mike averaging 37.6, strength
averaging 29.4, uniformity averaging 78.7, with 100 percent extraneous matter sold for around 76.50 cents, same terms as above.
West Texas
A moderate volume of mostly color 31 and better, leaf 3 and better, staple 37-39, mike averaging 44.5,
strength averaging 31.0, and uniformity averaging 80.5 sold for 83.00-85.00 cents per pound, FOB car/truck
(compression charges not paid).
Similar lots containing 100 percent extraneous matter sold for around 80.50 cents, same terms as above.
A light volume of mostly color 11 and 21, leaf 2 and better, staple 33-35, mike averaging 46.8, strength
averaging 29.7, and uniformity averaging 80.1 sold for around 77.00 cents, same terms as above.
A moderate volume of mixed lots mostly color 41 and 51, leaf 3 and better, staple 34-38, mike 39-46, strength
averaging 28.6, uniformity averaging 79.1, with 50 percent extraneous matter sold for 76.00 to 76.25
cents, same terms as above.
A moderate volume of mixed lots mostly color 42 and better, leaf 6-8, staple 38 and longer, mike averaging 35.0,
strength averaging 31.0, uniformity averaging 81.0, with 100 percent extraneous matter sold for around
67.50 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.
No forward contracting or domestic mill activity was reported. Average local prices were higher.
Foreign mill inquiries were light.
Temperatures were in the 50s and 60s in Arizona. Wind advisories were in effect as a winter storm moved
into the area late in the period with sustained winds of 30 to 40 miles per hour. Rain was received
measuring from one-tenth of an inch up to one-third of an inch. Flood advisories were also issued.
A winter storm watch was in effect for the Safford area late in the period. After the latest storm,
the Arizona snowpack is 281 percent of normal, compared to 146 percent last week, according to SNOFLO data.
The year is shaping up to be the second snowiest season in 30 years for Arizona. Daytime high temperatures
in the 60s to 70s dropped into the low 50s as the cold front moved into New Mexico and El Paso, TX. Snow
showers and strong winds were reported.
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 higher. Foreign mill inquiries were light.
Daytime temperatures were mostly in the low 50s, with overnight lows in the low 30s. Freeze warnings
are in effect throughout the Valley. Once again, rain and snow entered California. Precipitation amounts
ranged from one inch up to two and three-quarters of an inch. An executive order by the California governor
to capture more storm water run-off for groundwater recharge and conservation of water supplies was issued.
Valley irrigation districts are offering water to growers early due to excess rainwater in city ponding basins.
Fields are wet. Producers could start planting by March 10, but with more storms in the near term, planting
could be delayed into April. The latest weather event brought snow levels as low as 2,000 feet in the Sierra
Nevada Mountain range. Many mountain communities were snowed in as major mountain roads have been closed
since Sunday. The California Department of Water Resources reported the statewide snowpack was 189 percent
of normal for March 1, and 166 percent of the April 1 average. The average snow water equivalent is 43.7 inches.
More rain and snow remain in the near-term forecast.
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 were in the 50s to 60s. A strong winter storm system entered the Far West mid-week.
Powerful winds and heavy rains felled trees and filled ponding basins in the San Joaquin Valley of California.
After the latest storm, many mountain communities were snowed in as major mountain roads have been closed
since Sunday. The California Department of Water Resources reported the statewide snowpack was 189 percent
of normal for March 1, and 166 percent of the April 1 average. The average snow water equivalent is 43.7 inches.
More rain and snow remain in the near-term forecast. The Arizona snowpack is 281 percent of normal, compared
to 146 percent last week, according to SNOFLO data.
Trading
Desert Southwest
A moderate volume of Arizona cotton color 21 and 31, leaf mostly 3 and better, staple 37 and longer,
mike averaging 44.4, strength averaging 32.5, and uniformity averaging 81.5 sold for around 75 points
off ICE May futures, uncompressed, FOB warehouse.
Similar lots containing color 32 and leaf 4 sold for around 500 points off ICE May futures, same terms as above.
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
