Spot quotations averaged 82 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 79.75 cents per pound
for the week ending Thursday, May 25, 2023. The weekly average was down from 80.57 cents
last week and from 137.47 cents reported the corresponding period a year ago. Daily average
quotations ranged from a high of 82.90 cents Friday, May 19 to a low of 76.19 cents
Thursday, May 25. Spot transactions reported in the Daily Spot Cotton Quotations for the
week ended May 25 totaled 20,376 bales. This compares to 38,853 bales reported last week
and 1,832 spot transactions reported the corresponding week a year ago. Total spot
transactions for the season were 692,918 bales compared to 1,616,392 bales the
corresponding week a year ago. The ICE July settlement price ended the week at 80.12
cents, compared to 86.66 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.
Cloudy skies dominated the weather pattern during the week across the lower
Southeast. Daytime high temperatures were in the 70s and 80s. Scattered
showers brought significant precipitation to areas throughout Alabama, the
Florida Panhandle, and Georgia throughout the week. The heaviest totals were
recorded along the Gulf and Atlantic coastal areas and east-central Alabama
with measurements of 2 to 4 inches observed. Planting was delayed in areas
that received heavy rainfall and remained slightly behind the five-year average
in Alabama and Georgia due to cool temperatures. The moisture helped ease dry
conditions in north Alabama and south Georgia.
A mix of sunny to overcast conditions were observed across the upper Southeast
during the period. Daytime high temperatures were in the 70s and 80s. Widespread
thunderstorms brought moisture to the region throughout the period with the
heaviest accumulations observed throughout South Carolina and portions of coastal
North Carolina. Precipitation totals measured 1 to 2 inches with heavier accumulations
recorded in some areas. The moisture helped replenish soil moisture levels and
relieve dry conditions. Planting was delayed and remained behind the five-year
average in the Carolinas due to cool temperatures and wet conditions.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and
staple 33 and longer for June through September delivery. No sales were reported.
No additional inquiries were reported. Mill buyers maintained a cautious undertone
as some operations continued to implement rolling shutdowns to prevent inventories
from building.
Demand through export channels was good. Chinese mill buyers purchased a moderate
volume of color 31, leaf 3, and staple 37 for November/December shipment. Vietnamese
mill buyers purchased a moderate volume of color 31, leaf 3, and staple 36 for June shipment.
Trading
A moderate volume of color 31 and 41, leaf 2-4, staple 36 and 37, mike 37-49,
strength 27-31, and uniformity 80-82 sold for around 25 points on ICE July futures,
FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).
A heavy volume mixed lot containing mostly 31 and 41, leaf 2-4, staple mostly 36 and
longer, mike 37-52, strength 29-31, and uniformity 80-83 sold for around 150 points
on ICE December futures, 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
light. Average local spot prices were lower. Trading of CCC-loan equities was moderate.
No forward contracting was reported. Cotton was being shipped in fulfillment of previously
contracted lots. Producers were dissatisfied with the recent drop in prices in the market.
Mostly clear skies and sunny conditions dominated the weather pattern in the North
Delta late in the reporting period. Daytime temperatures were in the 70s and 80s.
Nighttime temperatures were in the low 60s. Accumulated rainfall totals for the region
were reported at one-half of an inch to three inches. Heavy rainfall left many fields
in parts of the region too muddy for fieldwork and producers were waiting for fields to
dry out. Other areas were spraying herbicides and pesticides. According to local sources,
pressure from thrips could become an issue and should be monitored. Planting should be
finished soon. According to the National Agricultural Statistics Serviceís Crop Progress
report released on May 22, planting advanced to 79 percent completed in Arkansas, 81
in Missouri, and 62 percent in Tennessee. All of the states listed above were at or
slightly ahead of the five-year average. 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.
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 shipped
in fulfillment of previously contracted lots. Producers were dissatisfied with current
prices in the market.
Partly cloudy skies with some sunshine made for favorable conditions in the South Delta
territory during the period. Daytime temperatures were in the mid-to-upper 80s.
Overnight temperatures were in the low 60s. Scattered showers brought heavy precipitation
and lightening to parts of Mississippi. Accumulated rainfall totals measured from trace
amounts to more than one and one-quarter inches. Planting is expected to finish soon.
According to local sources, pressure from thrips could become an issue and should be
monitored. Early-planted cotton was reported to be making good progress and in good
condition. Producers had begun spraying herbicides. Rain and muddy field conditions
prevented some producers from completing fieldwork and replanting as necessary.
According to the National Agricultural Statistics Serviceís Crop Progress report
released on May 22, planting advanced to 83 percent completed in Louisiana and 63
percent in Mississippi. Soil moisture was rated normal, according to the U.S. Drought
Monitor. Virtual and in-person regional industry meetings were attended by all interested parties.
Trading
North Delta
A heavy volume of CCC-loan equities traded for around 25.00 cents per pound.
South Delta
No trading activity was reported.
Southwestern Markets Regional Summary
East Texas
Spot cotton trading was active early in the reporting period. Supplies and producer
offerings were moderate. Demand was moderate. Producers price ideas were firm.
The July ICE futures market trended higher early in week, and producers sold some
volume. By the end of the week, July futures lost ground as well as December.
Average local spot prices were lower. Trading of CCC-loan equities was slow.
No forward contracting was reported, but producers have interest. Foreign mill
inquiries were light. Interest was best for color 21, leaf 3, and staple 36 and
longer for prompt shipment.
Rio Grande Valley (RGV) temperatures were in the high 80s to low 90s. Partly cloudy
conditions with a trace of moisture were received early in the period. The crop made
good progress. Blooming was reported in the earliest-planted fields and young bolls
were sighted on bottom of plants. Treatment for aphid was reported. Local experts
encouraged growers to continue to monitor the crop for pests as increased pressure
was reported, especially fleahoppers. Producers and pest control advisors attended
the Cotton and Grain Scouting School, hosted by Texas Agrilife. By all accounts,
sources reported the RGV crop looks great. Daily scattered showers and thunderstorms,
with strong winds and hail were the norm for the week in the Blacklands Prairie.
A period of dry, sunny weather was needed for the crop to make progress. The crop
was in various stages of growth throughout the Blacklands Prairie, Coastal Bend,
and Upper Coast. The Coastal Bend and Upper Coast crop was squaring. Initial
blooming was reported in some Coastal Bend fields. Extension specialists
encouraged growers to scout the crop for pests as some will be migrating from
sorghum fields. A few sources reported seeing corn and sorghum on traditional
cotton acreage. Kansas temperatures were in the 70s and 80s. Precipitation was
received early in the reporting period. Accumulation totals measured from one-half
of an inch in southern Kansas up to two and one-half inches in western Kansas.
Planting continued. Early-planted cotton was up and making good progress.
After beneficial planting rains moved into the area, sowing was getting started
in Oklahoma. Rainfall has been hit and miss, but rain remains in the forecast.
Much more rainfall is needed to allow irrigation districts to release water for
crops. The Altus Lake level is around 22 percent capacity. Local sources
estimated approximately 15 to 20 percent of the crop was planted.
West Texas
Spot cotton trading was active early in the period. Supply and producer offerings
were moderate. Demand was moderate. Local recaps were offered, no sales were
reported. Producers price ideas were firm. The July ICE futures market trended
higher early in week, and producers sold some volume. By the end of the week,
July futures lost ground as well as December. Trading of CCC-loan equities was
inactive. Average local spot prices were lower. Foreign mill inquiries were
moderate and best for prompt shipment. Interest was best from China. Local
sources reported some bale or acres contracts were offered for 2023 crop based
on March 2024 futures.
Regional temperatures were in the high 70s to low 80s. Rains from the previous
week helped dry-planted cotton emerge. Precipitation this week spurred growers
to plant cotton as insurance deadlines approached. Precipitation amounts
recorded just over 2 inches of moisture around Amarillo into Oklahoma.
Local sources estimated from Plainview into the Panhandle, the crop was
approximately 60 percent planted. Scattered showers improved soil moisture profiles.
The planting deadline is May 31. Much more is needed specifically in areas
west and south of Lubbock. Growing areas around the Lamesa territory received
spotty showers. Accumulations recorded around one-tenth of an inch up to one inch.
Planting was active. Planting to meet insurance cut-off dates are June 5 for Lubbock and June 10 for Lamesa.
East Texas
In Texas, a moderate volume containing color 42 and 52, leaf mostly 3 and better,
staple averaging 35.3, mike averaging 42.5, strength averaging 29.6, and uniformity
averaging 80.6 sold for around 66.00 cents per pound, FOB warehouse (compression charges not paid).
A similar lot containing color 62, staple 33 and longer, strength averaging 25.2, with 25
percent extraneous matter sold for around 61.00 cents, same terms as above.
A light volume of Kansas cotton color 21 and better, leaf 3 and better, staple mostly 37,
mike averaging 39.3, strength averaging 31.5, and uniformity averaging 80.8 sold for
around 83.50 cents per pound, FOB car/truck (compression charges not paid).
A moderate volume mixed lot containing color 43 and 44 and better, leaf 4 and lower,
staple 32 and longer, mike averaging 40.0, strength averaging 29.1, uniformity averaging
79.3, with 75 percent extraneous matter sold for around 65.00 cents, same terms as above.
In Oklahoma, a light volume of color 4, leaf 2 and better, staple 37 and 38, mike
averaging 41.3, strength averaging 30.7, and uniformity averaging 79.7 sold for
around 81.50 cents, same terms as above.
A heavy volume of CCC-loan equities sold for 12.50-13.00 cents.
West Texas
A heavy volume of color 31 and better, leaf 3 and better, staple mostly 36 and longer,
mike averaging 42.7, strength averaging 29.6, and uniformity averaging 80.2 sold for
86.00-87.00 cents per pound, FOB car/truck (compression charges not paid).
A similar mixed lot containing a moderate volume of mike averaging 33.1 sold for around 67.00 cents, same terms as above.
USDA OPENS NOMINATIONS FOR AGRICULTURE ADVISORY COMMITTEE VACANCIES
USDA, AMS, Cotton & Tobacco Program is seeking nominations for twenty-four
vacancies on the Advisory Committee on Universal Cotton Standards. The Committeeís
purposes are to review the American Upland Cotton Standards and to make
recommendations to USDA concerning the establishment, revision, or change of the
standards. Nominations must be received by email or postmarked by July 1, 2023.
For more information and an application form please go to:
https://www.ams.usda.gov/about-ams/facas-advisory-councils/acucs
https://www.usda.gov/whlo/apply
**********************************************************************************
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was slow. Supplies and demand were light. No forward
contracting or domestic mill activity was reported. Average local prices
were lower. Foreign mill inquiries were light.
Temperatures were in the 90s to low 100s in Arizona. Flood warnings continued
for southern Maricopa County, due to dam releases. The Yuma and central Arizona
crop made good progress. Strong thunderstorms left standing water in a few
fields in Safford, AZ. Overall, the crop made good progress. Clouds and rain
moved into New Mexico and El Paso, TX early in the reporting period.
Cotton-growing areas of New Mexico received around one-third of an inch and
El Paso received around one-tenth of an inch. Seedling emergence was good.
No insect pressures 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 lower. Foreign mill inquiries were light.
Temperatures in the mid-90s dropped down into the mid-to-low 80s. Crop progress
slowed under overnight temperatures in the high 50s. No insect pressures were
reported. Flood warnings remained active.
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. Producer price ideas remained firm and a moderate volume
remains unsold. Foreign mill inquiries were light.
Daytime high temperatures were in the 80s to 100s for the Far West. Flood warnings
remained active in Arizona and California as high mountain snowpack melts and
from dam releases. Thunderstorms produced rainfall in parts of Arizona, New Mexico,
and El Paso, TX early in the reporting period. Overall, the crop made good
progress throughout the region. Fields exhibited 4 to 5 true leaves. No
significant insect pressures were reported.
Trading
Desert Southwest
A moderate volume of New Mexico cotton color 31, leaf 3, staple 35 and longer,
mike averaging 45.0, strength averaging 31.1, and uniformity averaging 81.0 sold
for around 88.00 cents per pound, FOB car/truck (compression charges not paid).
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
