Spot quotations averaged 201 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 75.43 cents per pound for the week
ending Thursday, March 23, 2023. The weekly average was down from 77.44 cents last week and 127.24 cents reported the
corresponding period a year ago. Daily average quotations ranged from a low of 74.90 cents Monday, March 20 to a high of
75.96 cents Wednesday, March 22. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March
23 totaled 7,855 bales. This compares to 9,240 bales reported last week and 45,547 spot transactions reported the
corresponding week a year ago. Total spot transactions for the season were 494,137 bales compared to 1,536,601 bales the
corresponding week a year ago. The ICE May settlement price ended the week at 77.58 cents, compared to 79.16 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.
Sunny to cloudy conditions prevailed across the lower Southeast during the period. Daytime high
temperatures in the 50s and 60s warmed into the 70s later in the week. Widespread showers
brought rainfall to areas across the region over the weekend. Precipitation totals measured from
one-half of an inch to two inches of moisture, with the heaviest accumulations recorded in south
Alabama, the Florida Panhandle, and south Georgia. The moisture resulted in localized
improvements in abnormal dryness in parts of south central Georgia, according to the U.S.
Drought Monitor. Producers prepared fields for spring plantings. A few gins remained on gin
days in Alabama and Georgia.
A mix of sun and clouds were observed across the upper Southeast during the period. Daytime
high temperatures varied from the upper 50s to low 70s. Light, scattered rainfall was
received along portions of cotton growing areas of the eastern Carolinas and Virginia.
Weekly precipitation totals measured from trace amounts to around one-half of an inch of
moisture. Despite the scattered rainfall, drought and abnormal dryness expanded in these
states, 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 purchased a light volume of color 41, leaf 4, and staple 34 and longer
for nearby delivery. Mill buyers inquired for a moderate volume of color 41, leaf 4, and
staple 34 for second quarter through fourth quarter delivery. No additional sales were
reported. The undertone from mill buyers remained cautious as overall yarn demand remained
lackluster and some locations remained idle.
Demand through export channels was moderate. Indonesian mill buyers inquired for a moderate
volume of USDA Green Card class, color 31, leaf 3, and staple 37 for nearby shipment.
Agents for mills in Thailand inquired for a moderate volume of color 31, leaf 3, and staple
36 and longer for nearby shipment. No additional sales were reported.
Trading
A moderate volume of color 31 and 41, leaf 3 and 4, staple 34 and longer,
mike 37-49, strength 28-31, and uniformity 80-82 sold for around 275 to
300 points on ICE May futures, FOB car/truck, Georgia terms (Rule 5,
compression charges paid, 30 days free storage).
A moderate volume of color 41 and 51, leaf 2-4, staple mostly 35 and
36, mike 37-42, strength 27-30, and uniformity 79-81 sold for around
25 points off ICE May futures, same terms as above.
A moderate volume mixed lot containing color mostly 41, leaf 3 and
4, staple 35-37, mike 43-53, strength 29-33, and uniformity 80-83
sold for around 76.00 cents per pound, FOB car/truck (Rule 5,
compression charges paid).
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 because current price levels are far below producersí price ideas.
Temperature extremes characterized the weather pattern during the week. Daytime highs fluctuated
from the low 40s to mid-70s. Overnight lows were in the mid-20s to mid-60s. Mostly cloudy
weather conditions dominated the Memphis territory; accumulated rainfall totaled nearly 3 inches.
Many areas reported standing water in fields. Low-lying areas were subject to flooding due
to saturated soils, swollen creeks, and rivers. Virtual and in-person regional industry meetings
were being attended by all interested parties. Producers carefully monitored the prices of
competing commodities due to the low price of cotton. According to local experts, the cost of
inputs, the price of competing crops, and soil conditions will influence on-going cost
calculations. Cotton acreage is expected to drop compared to last season. Producers attended
crop seminars and industry meetings as they continued to weigh spring planting decisions.
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 because producers are highly dissatisfied with current price levels.
Unseasonably cold temperatures early in the week approached record highs late week as a warming
trend moved into the region. Daytime highs ranged from the upper 40s to the upper 80s.
Corresponding overnight lows started the week in the in the 20s, then soared into the upper
60s. Persistent rain showers brought nearly 2 inches of precipitation to much of 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 will contrast sharply compared to last year. Producers attended
crop seminars and industry meetings as they continued to plan for the spring planting season.
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 light. Interest was best from Bangladesh, China, and
Vietnam.
Planting was interrupted by a cold front that brought up to one-half of an inch of rainfall to
the Rio Grande Valley (RGV), and the Coastal Bend. The Upper Coast received more than one-half
of an inch of rainfall. Welcomed precipitation is in the nearby forecast for all parts of East
Texas. Planting and stand emergence progressed in the RGV, with daytime high temperatures
reaching into the low 90s. Thunderstorms interrupted planting in the Blackland Prairies.
Some areas received around one and one-half inch of precipitation that left fields soggy.
In Kansas, droughty conditions persisted with daytime high temperatures in the low 40s to
mid-70s, and overnight lows in the teens to low 40s. Planting seed orders increased.
Cotton is gaining acres as more wheat acres fail. Fertilizer was applied. In Oklahoma,
some fieldwork was underway, but most fields have cover crops. Producers will terminate
the cover crops in about two weeks and begin planting cotton around mid-May.
The Texas Cotton Ginnersí Association Annual Trade Show is March 30 and 31 at the
Lubbock Memorial Civic Center. More information can be found at this link:
http://www.tcga.org/. All are welcomed at the USDA, AMS, Cotton and Tobacco Programís
booth at the trade show.
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 light. Interest was best from Bangladesh, China,
and Vietnam.
Windy conditions continued to increase soil evaporation with daytime high
temperatures in the upper 40s to upper 80s. Showers brought light rainfall
amounts to some areas of the Panhandle and the Rolling Plains, but more
precipitation is needed to ensure widespread germination at sowing.
Producers made plans to terminate the cover crops and prepared for
planting, which will begin in April and continue through June. The Texas
Cotton Ginnersí Association Annual Meeting and Trade Show is next week
at the Lubbock Memorial Civic Center. The theme is ìTexas Cotton ñ Building
Back Strongî. More information can be found at this link:
http://www.tcga.org/. Stop by the USDA, AMS, Cotton and Tobacco Programís
booth at the trade show on March 30 and 31.
Trading
East Texas
In Texas, a lot containing a light volume of color 11 and 21,
leaf 1 and 2, staple 38, mike averaging 40.4, strength
averaging 24.6, and uniformity averaging 79.3 sold for around
62.50 cents per pound, FOB warehouse (compression charges
not paid).
In Kansas, a light volume of color 31, leaf 3, staple 33,
mike averaging 37.5, strength averaging 28.7, and
uniformity averaging 78.7 sold for around 66.75 cents,
FOB car/truck (compression charges not paid).
In Oklahoma, a light volume of color 21 and 31, leaf 2
and 3, staple 38, mike 39-45, strength 32-36, and
uniformity 79-83 sold for around 79.75 cents, same
terms as above.
Lots containing a heavy volume of color 41 and better,
leaf 4 and better, staple 37-40, mike 32-49, strength
22-35, and uniformity 78-83 sold for 72.75 to 76.25
cents, same terms as above.
Lots containing a heavy volume of color 31 and 41,
leaf 2-4, staple 38 and 39, mike 33-40, strength
30-34, and uniformity 78-82 sold for 70.75 to
71.25 cents, same terms as above.
West Texas
A lot containing a light volume of color 21 and 31,
leaf 2 and 3, staple 36, mike averaging 35.5,
strength averaging 27.6, and uniformity averaging
81.0 sold for around 74.75 cents per pound, FOB
car/truck (compression charges not paid).
Mixed lots containing a moderate volume of color
21, 31, 41, and 32, leaf 2-4, staple 34-37,
mike 30-52, strength 30-35, and uniformity
77-84 sold for 72.00 to 74.00 cents, same
terms as above.
Lots containing a moderate volume of color 41
and better, leaf 2 and 3, staple 35 and 36,
mike 34-58, strength 26-31, and uniformity
77-82 sold for 70.00 to 71.00 cents, same
terms as above.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light.
No forward contracting or domestic mill activity was reported. Average local prices were lower.
Foreign mill inquiries were light.
Temperatures were in the high 60s to low 70s in central Arizona. Scattered showers were received
in higher elevations of the Safford Valley. The Salt River Project will continue to release dam
water to prevent flash flooding and decrease reservoir capacity, due to rain and snowmelt. Flood
warnings were in effect for the Phoenix area as scheduled dam releases were on-going.
Water is making its way via the Salt riverbed through central and western Phoenix area. Some
state roads in higher elevations were closed due to flooding. The Arizona snowpack is 133
percent of normal, according to SNOFLO data. Winter storm warnings were in effect for higher
elevations late in the period. Planting continued in Yuma.
Daytime high temperatures were variable in New Mexico and El Paso, Texas, with scattered
showers and windy conditions reported in the week. The Elephant Butte reservoir located
in New Mexico supplies irrigation water to the El Paso area. It is estimated to be
around 16 percent capacity. Allocations from irrigation districts were scheduled for
release in May. Normal delivery amounts were expected.
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.
Heavy rainfall and strong winds entered California. Flood advisories were issued
throughout the central Valley due to flooding creeks, rivers, canals, and a few
dams that were releasing excess water. Some low-lying areas were flooded with
detours to get to towns near creeks. A few levees were opened, and water was
allowed to flow into fields to help remove pressure and keep some towns from
becoming flooded. Many cities had sandbags available for residents. Some
towns were in crisis mode as flooding caused evacuations and other towns
prepared residents for evacuation.
Weather delays continued for cotton planting.Producers were hopeful to plant
sometime in April. Some fields may not be available for planting this season.
There is an incredible amount of snowpack on the Sierra Nevada Mountain
range. The daily reading for March 22 showed the statewide snowpack 222
percent of normal, with 57.7 inches of average snow water equivalent,
according to the California Department of Water Resources. The California
snowpack last month on February 22 was 157 percent of normal. For the
first time in several years most of California approximately 48.5
percent is cleared of drought status, according to the U.S. Drought
Monitor.
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. Producers price ideas were firm. Overall,
producers remained patient and willing to wait for demand and better
pricing. No new-crop contracts were offered. Foreign mill inquiries
were light. Lack of demand put pressure on U.S. prices.
In the San Joaquin Valley (SJV) of California, plantings are delayed
by rain and flooded fields. SJV flood advisories were issued due to
flooding creeks, rivers, and canals. Some levees were opened, and
water was allowed to flow into fields to help remove pressure and
keep some towns from becoming flooded. Local dam releases were
on-going as most reservoirs were filled to capacity.
Many cities had sandbags available for residents as water flows
and settles to the lowest points of the SJV. Flooding and land
erosion forced residents living near rivers and low-lying
towns to evacuate. SJV producers were hopeful to plant
sometime in April. Fields may not be available for planting
this season. Some fields are flooded due to heavy rains and
could be throughout the summer as the snow melts from the
Sierras.
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
A light volume of color 2 and better, leaf 2 and better, staple 46 and longer was sold.
