Spot quotations averaged 154 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 80.87
cents per pound for the week ending Thursday, March 9, 2023. The weekly average was
down from 82.41 cents last week and 114.99 cents reported the corresponding period
a year ago. Daily average quotations ranged from a high of 82.25 cents Monday, March 6
to a low of 79.79 cents Thursday, March 9. Spot transactions reported in the Daily Spot
Cotton Quotations for the week ended March 9 totaled 9,030 bales. This compares to 31,860
bales reported last week and 12,654 spot transactions reported the corresponding week a
year ago. Total spot transactions for the season were 477,042 bales compared to 1,472,006
bales the corresponding week a year ago. The ICE May settlement price ended the week at
82.18 cents, compared to 83.71 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were moderate. Demand
was moderate. Average local spot prices were lower. Trading of CCC-loan equities was
inactive. Mixed clouds and sunshine prevailed across the lower Southeast during the
period with localized thunderstorms observed in some areas. Daytime high temperatures
in the 70s and 80s cooled late in the week and light scattered rains returned to the
region. Weekly accumulated precipitation totals measured 1 to 3 inches in north
Alabama and north Georgia and Gulf coastal areas. The moisture was welcomed in
southwest Georgia and the Florida Panhandle where moderate drought conditions expanded,
according to the U.S. Drought Monitor. Fieldwork advanced with little interruption in
areas where soils were firm enough to support equipment. A few gins remained on gin days
in Alabama and Georgia. Mostly sunny conditions prevailed during the week with occasional
cloud cover observed. Daytime high temperatures in the upper 60s to low 70s moderated
late week as a cool front moved across the region. Scattered shower activity was observed
during the week with the heaviest accumulations observed in cotton growing areas of
northeast North Carolina and southeast Virginia. Weekly accumulated rainfall totals
measured around one inch of moisture. Abnormal dryness was introduced into areas of
the eastern Carolinas that missed precipitation in recent weeks, according to the U.S.
Drought Monitor. Fieldwork advanced with little 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 second quarter through fourth quarter delivery. No sales were reported.
Improved yarn demand for late third quarter and fourth quarter was reported; but
overall demand 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 moderate. Agents throughout the Far East
inquired for any discounted styles of cotton.
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.
Cotton was being delivered to fulfill contracts; no new sales were
reported.
Weather conditions fluctuated from partly cloudy to light
showers. Daytime high temperatures ranged from the mid-70s
to the low 40s. Overnight lows were in the low 40s to the
low 60s. Light, scattered rain showers throughout the
week brought up to two and a half inches of precipitation
to the Memphis territory. Flood advisories were issued
by the National Weather Service for portions of the
Memphis territory, 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 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 in the low 70s early in the week soared to
near record highs in the mid-80s by the end of the reporting period.
Corresponding overnight lows started the week in the 60s, then
climbed into the low 70s, also well above seasonal averages. Light
and scattered rain showers brought less than 1 inch of precipitation
to the region. According to the U.S. Drought Monitor, soil moisture
was rated normal throughout the territory. Recent rainfall has
resulted in saturated soils and standing water in most low-lying
fields. Producers continued to monitor commodity prices and the
cost of inputs, particularly nitrogen fertilizers. Local experts
indicated that because of the economic outlook for cotton going
into the planting season, acreage could contract by several
percentage points more than estimated at the beginning of the
year, compared to last year.
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
moderate. Demand was light. Average local spot prices were lower.
Producer interest in forward contracting was light. Producers
considered marketing options for the 2023-crop. Trading of CCC-loan
equities was inactive. Foreign mill inquiries were moderate.
Interest was best from Korea, Mexico, and Vietnam.
Soils warmed in the Rio Grande Valley (RGV), Coastal Bend, and in
south Texas with daytime temperature highs in the upper 70s to
low 90s and overnight temperatures in the 50s to 70s. No rainfall
was reported and some producers hoped for more rainfall before
planting. Cotton planting made good progress in the RGV, Coastal
Bend, and in south Texas. In the RGV, irrigated acres were
planted, and field activity moved toward planting dryland acres.
Stands had begun to emerge. Producers were making marketing
decisions since marketing pools and forward contracts were
offered. Weather will play a big role in marketing decisions
if south Texas were to receive significant rainfall. Fieldwork
was slow in the Blackland Prairies (BP). Fields were soggy.
According to the National Agricultural Statistics
Serviceís Texas Crop Progress and Conditions report released on
March 6, subsoil moisture in the BP was 9 percent very short, 16
short, 45 adequate, and 30 percent surplus.
In Kansas, weather was variable with daytime temperature highs in the
low 40s to upper 70s, and overnight lows in the mid-20s to low 40s.
Some areas expected less acres planted due to undesirable market
prices, input, and harvesting costs. Droughty conditions weighed
heavily on marketing plans. In Oklahoma, producers planned for the
upcoming cropping season booking seed and other inputs. Cotton planting
counties remained in some level of drought with 60 percent of the state
in one of the drought intensity levels, according to the U.S. Drought
Monitor.
West Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was light.
Average local spot prices were lower. Producer interest in forward contracting was light.
Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was
best from Korea, Mexico, and Vietnam.
All of the West Texas cotton growing areas remain in drought, according to the U.S.
Drought Monitor. The entire area needs a period of slow-soaking rainfall to
recharge soil moisture. Lots of field erosion and irrigation pivots were
overturned from the recent wind events. Daytime temperature highs were in the
low 50 to upper 80s, and overnight temperature lows were in the 20s to 50s.
Fields were cultivated, and producers prepared to apply pre-plant herbicide.
Trading
East Texas
In Texas, mixed lots containing a light volume of color 42 and better,
leaf 4 and better, staple 34-36, mike 41-49, strength 26-33, and
uniformity 79-82 sold for 80.50 to 81.25 cents per pound, FOB
warehouse (compression charges not paid).
In Kansas, mixed lots containing a light volume of color 31, 41, 32,
and 42, leaf 3 and 4, staple 35 and 36, mike 41-44, strength 30-31,
uniformity 79-81, and 75 percent extraneous matter sold for 73.75 to
76.00 cents, FOB car/truck (compression charges not paid).
In Oklahoma, lots containing a light volume of mostly color 31 and
41, leaf 2 and 3, staple 36 to 38, mike 38-42, strength 28-32, and
uniformity 79-82 sold for 82.75 to 83.00 cents, same terms as
above.
West Texas
A lot containing a heavy volume of color 41 and better, leaf 4 and
better, staple 35, mike averaging 43.0, strength averaging 31.3,
and uniformity averaging 81.1 sold for around 84.50 cents per
pound, FOB car/truck (compression charges not paid).
A moderate volume of lots containing color 42 and better, leaf
2 and 3, staple 38 and 39, mike 27-38, strength 27-33, and
uniformity 77-83 sold for 80.00 to 82.00 cents, same terms as
above.
Mixed lots containing a moderate volume of mostly color 31-41,
leaf 3-6, staple 36 and 37, mike 37-55, strength 29-33, and
uniformity 79-83 sold for 76.50 to 77.50 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. No forward contracting or domestic mill activity was reported.
Average local prices were lower. Foreign mill inquiries were light.
Planting continued in Yuma, AZ under good weather conditions with daytime
temperature highs in the mid-60s to low 80s. Overnight temperature lows were
in the 40s to 50s. Planting was expected to begin in April for central and eastern
AZ. Fieldwork was underway at some locations in central AZ. Reoccurring rainfall
caused multiple extensions for cutting stalks. Field preparation was interrupted.
Producers considered other crops to plant because of current market prices in El
Paso, TX, and New Mexico. The cost of fertilizer, diesel, and other inputs challenge
profit margins with current futures prices. Fields were prepped, and rows were built,
but planting seed sales were slow.
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. Recent rains kept fields very wet and soil temperatures cold. Some
fields will have to be re-worked before planting can begin. Producers reported planting was
likely to begin sometime in April.
American Pima (AP)
Spot cotton trading was slow. Supplies were heavy. Demand was light. No forward contracting
or domestic activity was reported. Average local spot prices were lower. Producersí price ideas
were firm. Overall, producers remained patient and willing to wait for demand and better pricing.
Foreign mill inquiries were light. Lack of demand put pressure on U.S. prices. Recent rains kept
San Joaquin Valley fields very wet and soil temperatures are cold. Some fields will have to be
re-worked before planting can begin. Producers reported planting was likely to begin sometime in
April. Ginning continued in eastern Arizona. Fields were prepped ahead of planting season.
Current market prices encouraged producers in El Paso, Texas and New Mexico to consider alternative
crops such as hay. Planted acres are expected to be reduced compared to the previous season.
Trading
Desert Southwest
A light volume of color 31 and better, leaf 3, staple 39, mike averaging 40.0, strength averaging 31.0,
and uniformity averaging 82.6 sold for around 86.00 cents per pound, uncompressed, FOB warehouse.
San Joaquin Valley
No trading activity was reported.
American Pima
Desert Southwest (DSW)
