Spot quotations averaged 343 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 77.44 cents per pound for the week ending Thursday, March 16, 2023.
The weekly average was down from 80.87 cents last week and 117.87 cents reported the corresponding period a year ago. Daily average
quotations ranged from a low of 75.79 cents Friday, March 10 to a high of 78.98 cents Tuesday, March 14. Spot transactions reported
in the Daily Spot Cotton Quotations for the week ended March 16 totaled 9,240 bales. This compares to 9,030 bales reported last week
and 19,048 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 486,282 bales
compared to 1,491,054 bales the corresponding week a year ago. The ICE May settlement price ended the week at 79.16 cents, compared
to 82.18 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was slow. 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 weather early in the period gave way to clear and cold conditions later in the week. Daytime temperature highs
were in the 60s and 70s. Widespread showers brought moisture to areas throughout Alabama, the Florida Panhandle, and Georgia over
the weekend. Precipitation totals measured from 1 to 3 inches with the heaviest accumulations observed along Gulf coastal areas,
eastern Alabama, and central Georgia. In Florida, the rainfall provided relief to abnormally dry and moderate drought conditions,
according to the U.S. Drought Monitor. Outside activities advanced with limited interruption. A few gins remained on gin days in
Alabama and Georgia.
Similar weather conditions were observed across the upper Southeast during the period. Daytime high temperatures in the 50s and 60s
warmed into the 70s late in the week. Widespread showers brought moisture to cotton growing areas of the eastern Carolinas and
Virginia. Weekly accumulated precipitation totals measured one-half of an inch to around 1 inch of moisture. Despite the rainfall, no
improvements in soil moisture were observed in areas where abnormally dry conditions persisted, according to the U.S. Drought Monitor.
Producers prepared fields for spring planting. Ginning neared completion; a few gins remained on gin days.
Textile Mill
Domestic mill buyers purchased a light volume of color 41, leaf 4, and staple 34 and longer for May delivery. Mill buyers inquired
for a moderate volume of color 41, leaf 4, and staple 34 for June through October delivery. No additional sales were reported.
Mill buyers maintained a cautious undertone as overall yarn demand remained lackluster, and some locations remained idle.
Demand through export channels was moderate. Agents for mills in China and India purchased a moderate volume of USDA Green Card
class, color 21, leaf 2, and staple 38 and 39 for March/April shipment. Vietnamese mill buyers inquired for a moderate volume of
color 21, leaf 3, and staple 37 for March shipment. No additional sales were reported.
Trading
A moderate volume of color mostly 41 and 51, leaf 3-6, staple 37 and longer, mike 33-49, strength 28-32, and uniformity 80-82 sold
for around 79.25 cents per pound, FOB car/truck (Rule 5, compression charges paid).
A light volume of color 41 and 51, leaf 3-5, staple 35-37, mike 37-42, strength 27-30, and uniformity 79-81 sold for around 76.25
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. Merchants reported a light volume of forward contracting. Cotton was being delivered
to fulfill contracts; no new sales were reported because producers were highly dissatisfied with current price levels.
Daytime high temperatures were in the low 60s to low 50s. Overnight lows were in the 40s to 60s. Partially cloudy weather
conditions dominated 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 due to a decrease in the price of cotton. 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. Merchants reported a light volume of forward contracting. Cotton was being delivered to
fulfill contracts; no new sales were reported because producers were highly dissatisfied with current price levels.
Unseasonably warm temperatures early in the week returned to winter-like conditions with temperatures in the 50s as a cold front moved
through the region. Corresponding overnight lows started the week in the 70s, then dropped into the low 40s. Scattered rain
showers brought nearly 2 inches of precipitation to the territory. 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
Producers booked a light volume of 2023-crop cotton for around 200 points off the ICE December futures contract.
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 heavy. Interest was best from China, Mexico, and Vietnam.
Seedling stands had begun to emerge in the Rio Grande Valley (RGV) and Coastal Bend. Spotty rainfall brought helpful precipitation
to the Upper Coast, Coastal Bend, and RGV, with daytime temperature highs in the low 60s to upper 90s and overnight temperatures
in the 50s to 70s. Planting was interrupted late in the period by a strong, widespread thunderstorm. Rainfall was received in the
northern Blackland Prairies that slowed fieldwork. Some areas received around one and one-half inches of precipitation that left fields soggy.
In Kansas, light, beneficial precipitation was welcomed, with daytime temperature highs in the low 40s to mid-60s and overnight
lows in the 20s to 50s. More widespread rain is needed ahead of planting to ensure seed germination. Wheat abandonment rates were
expected to be high, which could push some acres back to cotton ahead of the sowing season. All crops struggled from persistent
droughty conditions.
In Oklahoma, fieldwork was initiated and consisted of plowing and herbicide application. Beneficial snow and rainfall brought up
to 1 inch of precipitation as a storm left the Texas Panhandle and moved into Oklahoma. Accumulations were light since daytime
temperatures stayed above freezing. Growersí meetings were held to discuss marketing options.
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 heavy. Interest was best from China, Mexico, and Vietnam.
Beneficial, light rainfall was received intermittently with daytime temperature highs in the low 50 to low 90s. Counties in the
northeastern Panhandle received rain and snow early in the reporting period. The front quickly moved eastwardly into Oklahoma.
Winds calmed and fieldwork was restarted. Pre-plant irrigation was underway in the Panhandle. Dryland fields were cultivated.
Herbicide applications were applied. Pivot repairs were made. Producers considered marketing options for the 2023-crop.
Trading
East Texas
In Texas, a lot containing a light volume of color 53, 63, 54, and 84, leaf 6-8, staple 33, mike averaging 36.9, strength averaging
25.2, uniformity averaging 77.3, and 100 percent extraneous matter sold for around 59.50 cents per pound, FOB warehouse (compression charges not paid).
In Kansas, mixed lots containing a light volume of color 21 to 41, leaf 2-8, staple 33, mike 33-48, strength 28-34, uniformity 78-81,
and 50 percent extraneous matter sold for 69.75 to 70.50 cents, FOB car/truck (compression charges not paid).
In Oklahoma, mixed lots containing a moderate volume of color 21 to 41, leaf 4 and better, staple 36-38, mike 35-48, strength 28-34,
and uniformity 80-83 sold for 76.75 to 79.00 cents, same terms as above.
A lot containing a heavy volume of color 41, leaf 4, staple 36 and 37, mike averaging 39.8, strength averaging 32.0, uniformity averaging
80.1, and 100 percent extraneous matter sold for around 75.00 cents, same terms as above.
West Texas
A lot containing a moderate volume of color 21 and 31, leaf 2 and 3, staple 37, mike 36-49, strength 29-34, and uniformity 79-83 sold for
around 80.25 cents per pound, FOB car/truck (compression charges not paid).
A lot containing a heavy volume of color 41 and better, leaf 5 and better, staple 37, mike averaging 47.0, strength averaging 32.5, and
uniformity averaging 81.8 sold for around 78.25 cents, same terms as above.
A light volume containing color 31, leaf 2 and 3, staple 34, mike averaging 50.1, strength averaging 31.0, and uniformity averaging 80.1
sold for around 76.25 cents, same terms as above.
A mixed lot containing a light volume of color 32, 42, and 43, leaf 3-6, staple 35, mike averaging 31.5, strength averaging 29.0,
uniformity averaging 80.3, and 75 percent extraneous matter sold for around 68.00 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 spot prices were lower. Foreign mill inquiries were light.
Cotton planting was at 1 percent compared to the five-year average at 8 percent, according to the National Agricultural Statistics Serviceís
Arizona Crop Progress report released on March 13. Planting was interrupted by welcomed rainfall in Yuma, AZ. Planting delays continued in central
and eastern Arizona because of rainfall and soggy field conditions. Fields were prepped ahead of planting in New Mexico and around El Paso, TX.
Fields were pre-irrigated.
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 Pacific storm system brought more than 3 inches of additional heavy rainfall to already saturated fields. Some fields will have to be re-worked
before planting begins. Some areas experienced flooding as snow melted from the Sierra Nevada Mountains. Snow was received at higher elevations,
and the winter snowpack continued to increase. Producers reported planting was expected to begin in April. A period of sunny, dry weather is needed
to firm and warm soils.
American Pima (AP)
Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average local
spot prices were steady. 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.
Additional rainfall brought more than 3 inches of accumulated precipitation and kept fields in the San Joaquin Valley soggy. Planting has been
further delayed. Soil temperatures were cold and have not reached optimal temperatures for sowing. Fields were prepped in eastern Arizona ahead of
planting, and ginning was nearing completion. Producers in El Paso, TX, and New Mexico pre-irrigated fields ahead of putting seed in the ground.
Less acres were expected to be planted at some locations, but some areas expected to plant more acres. Aside from Yuma, AZ, where planting was
underway, sowing was expected to begin in April for the rest of the AP growing areas. Cotton planting was at 1 percent compared to the five-year
average at 8 percent, according to the National Agricultural Statistics Serviceís Arizona Crop Progress report released on March 13.
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
