Spot quotations averaged 335 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 76.93 cents per pound
for the week ending Thursday, April 27, 2023. The weekly average was down from 80.28
cents last week and from 134.06 cents reported the corresponding period a year ago.
Daily average quotations ranged from a high of 77.98 cents Monday, April 24 to a low of
75.65 cents Wednesday, April 26. Spot transactions reported in the Daily Spot Cotton
Quotations for the week ended April 27 totaled 6,570 bales. This compares to 27,075
bales reported last week and 4,153 spot transactions reported the corresponding week
a year ago. Total spot transactions for the season were 598,354 bales compared to
1,601,978 bales the corresponding week a year ago. The ICE July settlement price
ended the week at 80.40 cents, compared to 80.09 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.
Mostly cloudy conditions prevailed across the lower Southeast during the period.
Daytime high temperatures were in the 70s and 80s. Scattered thunderstorms
brought precipitation to areas throughout Alabama, the Gulf, and Atlantic
coastal regions. Weekly accumulated rainfall totals measured from trace amounts
to around 2 inches of moisture, with the heaviest accumulations recorded in
north Alabama. According to the U.S. Drought Monitor, abnormally dry conditions
expanded in portions of south Georgia that missed precipitation. Planting was
getting underway in the lower Southeast and progressed slightly ahead of normal
in Alabama, according to local reports.
Sunny to overcast conditions were observed across the upper Southeast during
the week. Daytime high temperatures were mostly in the 70s and 80s.
Widespread thunderstorms brought moisture to areas throughout the Carolinas
and Virginia during the period. Precipitation totals measured from 1 to 2
inches of moisture. Planting was getting underway, but was delayed in some
areas due to cooler nighttime temperatures.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and
staple 34 for second quarter through fourth quarter delivery. No 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. Agents throughout the Far East
inquired for any discounted styles of cotton.
Trading
A moderate volume of color 41 and better, leaf 3 and 4, staple 36 and longer,
mike 35-49, strength 28-31, and uniformity 80-83 sold for around 81.25 cents
per pound, FOB car/truck (Rule 5, compression charges paid).
A moderate volume of color 41 and 51, leaf 3 and 4, staple 36 and 37, mike
37-47, strength 30-33 and uniformity 80-83 sold for 25 to 75 points on ICE
July futures, FOB car/truck, Georgia terms (Rule 5, compression charges
paid, 30 days free storage).
South Central Markets Regional Summary
North Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was 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. Prices took a sharp plunge this week.
Cloudy and wet climatic conditions prevailed throughout the week. Temperatures were cooler
than the previous week. Daytime high temperatures were in the 60s and 70s. Overnight lows
were in the 40s and 50s. Nearly two and one-half inches of rain fell during the week in
many areas. Spring fieldwork was delayed in many areas; however, according to the National
Agricultural Statistics Serviceís Crop Progress report released on April 24, planting was
underway at 5 percent complete in Arkansas, 3 percent in Tennessee, and 1 percent in Missouri.
More rain is in the short-term weather forecast. According to the U.S. Drought Monitor soil
moisture was rated normal. Virtual and in-person regional industry meetings and events were
attended by all interested parties. Darryl W. Earnest, the Deputy Administrator for the
USDA-AMS-Cotton and Tobacco Program, has officially retired. A ceremony honoring his service
and achievements on behalf of the cotton industry was held in Memphis, Tennessee on
April 27, 2023.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was 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. Cotton prices moved sharply lower during the week, further dampening producersí
enthusiasm for planting cotton.
Mostly cloudy, cool, and wet weather conditions dominated during the report period. Daytime
high temperatures were in the 60s and 70s. Overnight lows were in the 40s and 50s.
Accumulated precipitation totaled around 1 inch in many areas. Spring fieldwork was delayed
in many areas; however, according to the National Agricultural Statistics Serviceís Crop
Progress report released on April 24, planting advanced slowly to 5 percent complete in
Louisiana and was underway in Mississippi at 1 percent. According to the U.S. Drought
Monitor soil moisture was rated normal. Virtual and in-person regional industry meetings
and events were attended by all interested parties, including a retirement ceremony
honoring the service and achievements of Darryl W. Earnest the Deputy Administrator,
for the USDA-AMS-Cotton and Tobacco Program. The event was held on the campus of the
University of Memphis on April 27, 2023.
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, Taiwan, and Turkey.
Beneficial rainfall was received in the Rio Grande Valley and stands advanced. Some
areas received more than 1 inch of moisture. Additional rain chances are in the
nearby forecast. According to the Pest Cast newsletter released on April 21,
maturity varied from the cotyledon stage through squaring. Herbicide was applied to
control weeds. Cooler than normal daytime and nighttime temperatures in the Upper
Coast and Coastal Bend, plus scattered rainfall up to 4 inches has slowed stand
progress. More heat units are needed to help stands establish and advance. Some
replanting was underway. Sowing came to a standstill following rainfall that left
fields soggy in the Blackland Prairies. Large hail stones were reported. Planting
is expected to resume next week.
In Kansas, some areas received up to one and one-half inches of much needed rainfall
with daytime high temperatures in the 50s to 60s, and overnight lows in the 20s to
40s. More rainfall is in the forecast. Producers prepared for planting. In Oklahoma,
some locations received up to 1 inch of beneficial moisture, but more rainfall is
needed to ensure stand establishment. No planting was reported, but some acres could
be planted next week to take advantage of the precipitation. Planting is expected
to gain momentum in the middle of May.
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 slow. Foreign mill inquiries
were moderate. Interest was best from Korea, Taiwan, and Turkey.
Intermittent rainfall was received mid-week with daytime high temperatures in the 40s
to 70s. Overnight low temperatures were in the 40s to 60s. Rain amounts varied from
trace up to around 3 inches of precipitation. Heavier amounts were received in the
Panhandle and northeast of Lubbock. The National Weather Service reported 90 mile per
hour wind gusts in Dickens County that caused building damage. Baseball-sized hail
was reported. Downed trees and power outages were reported in Paducah. Producers
waited for better soil conditions and soil temperatures before planting. Lots of acres
have been prepared and are ready for sowing. Herbicide was applied to control weeds.
Center pivots were pre-irrigating if water was available. Some wheat stands were
terminated for cotton cover crop. Seed was booked but market prices led to planting
uncertainty.
Trading
East Texas
In Texas, a lot containing a light volume of color 42 and better, leaf 3 and better,
staple 33, mike averaging 44.7, strength averaging 27.3, and uniformity averaging
78.9 sold for around 66.00 cents per pound, FOB warehouse (compression charges not
paid).
A light volume mixed lot containing color 52 and better, leaf 5 and better, staple
35, mike 39-47, strength 28-31, uniformity 79-82, and 100 percent extraneous
matter (Plastic) sold for around 47.25 cents, same terms as above.
In Kansas, a moderate volume of mostly color 22 and better, leaf 3 and better,
staple 35, mike 33-46, strength 26-34, and uniformity 80-82 sold for around
72.00 cents, FOB car/truck (compression charges not paid).
In Oklahoma, lots containing a heavy volume of color 41, leaf 2-4, staple 38
and 39, mike 34-48, strength 30-34, and uniformity 79-83 sold for 75.00 to
77.50 cents, same terms as above.
A lot containing a heavy volume of color 32 and better, leaf 2-4, staple 38,
mike averaging 39.7, strength averaging 33.1, uniformity averaging 81.0, and
100 percent extraneous matter (Bark) sold for around 71.25 cents, same terms
as above.
West Texas
A mixed lot containing a moderate volume of color 31 and better, leaf 3 and
better, staple 37, mike 39-48, strength 29-34, and uniformity 80-83 sold
for around 78.25 cents per pound, FOB car/truck (compression charges not
paid).
A mixed lot containing a moderate volume of color 21-42, leaf 2-6, staple
35, mike 31-48, strength 26-34, uniformity 76-82, and 50 percent
extraneous matter (Bark) sold for around 66.00 cents, same terms as above.
A light volume of color 44 and 54, leaf 3-6, staple 35, mike 35-42,
strength 27-31, uniformity averaging 79.0, and 75 percent extraneous
matter (Bark) sold for around 65.00 cents, same terms as above.
A light volume of CCC-loan equities traded for 27.75 cents.
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.
Cotton planting was at 33 percent complete compared to the five-year average of
48 percent, according to the National Agricultural Statistics Serviceís Arizona
Crop Progress report released on April 24. Cotton planting neared completion in
Yuma, AZ, and had been extended to give the vegetable produce crop more time to
make good yields. Planting delays continued in central AZ because of field
conditions and below optimal temperatures. Planting was underway in southern
and eastern AZ where temperatures had warmed. Planting continued in New Mexico,
and around El Paso, TX. Producers were encouraged by available water supplies
and expected to receive the first irrigation water from Elephant Butte
Reservoir in mid-May.
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.
Planted acres will be significantly lower because of field flooding from the
Pine Flat Dam releases. The National Weather Service issued the flood
warning with no current ending period.
American Pima (AP)
Spot cotton trading was inactive. Supplies were heavy. Demand was moderate.
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 stronger demand and better
pricing. Foreign mill inquiries were moderate with interest mostly from China,
India, and Vietnam. On April 21, the Department of Agriculture’s Commodity
Credit Corporation announced that the extra long staple competitiveness
payment rate of 56.00 cents will be in effect from April 28-May 4. This is
the fourth week that the payment has been in effect.
Dam releases kept San Joaquin Valley fields flooded and hindered crop
establishment. Planting continued in central and eastern Arizona.
Seedlings had begun to emerge. Planting was estimated to be about 3
weeks behind schedule due to unseasonably cool temperatures during
the sowing season. Planting was wrapping up in Yuma, AZ. Planting
was initiated later than normal to accommodate finishing the
vegetable produce crop. Producers in El Paso, Texas, and New Mexico
neared the end of planting and seedlings had begun to emerge. Less
acres were expected to be planted at some locations, but other
areas expected to plant more acres.
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
