Spot quotations averaged 56 points higher 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 80.31 cents per pound for the week
ending Thursday, June 1, 2023. The weekly average was up from 79.75 cents last week, but down from 133.39 cents reported
the corresponding period a year ago. Daily average quotations ranged from a low of 79.42 cents Friday, May 26 to a high
of 82.21 cents Thursday, June 1. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June
1 totaled 11,437 bales. This compares to 20,376 bales reported last week and 1,202 spot transactions reported the
corresponding week a year ago. Total spot transactions for the season were 704,355 bales compared to 1,617,594 bales
the corresponding week a year ago. The ICE July settlement price ended the week at 86.42 cents, compared to 80.12 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 higher. Trading of CCC-loan
equities was inactive.
Partly cloudy and windy conditions were prevalent throughout the lower Southeast during the week.
Daytime temperatures were in the low to upper 80s with nighttime temperatures in the 50s and 60s.
Scattered showers brought some 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 with measurements of 1 to 3 inches observed. The moisture helped ease dry
conditions in north Alabama and south Georgia. Planting progressed with some replanting occurring
due to excessive rains from previous weeks, but remained slightly behind the five-year average in
Alabama and Georgia. Producers are working to beat the insurance planting deadline.
Weather conditions were cloudy and cool at the beginning of the period throughout the upper
Southeast with daytime temperatures in the 60s. Toward the end of the week, temperatures
rebounded into the 80s with nightly lows in the 60s. A storm system brought heavy rains to
the territory with the heaviest accumulations observed throughout South Carolina and portions
of coastal North Carolina. Precipitation totals measured from 1 to 5 inches with heavier
accumulations recorded in some areas. The moisture helped replenish soil moisture levels and
relieve dry conditions. Planting progressed, but was delayed by wet conditions in some areas
and remained behind the five-year average.
Textile Mill
Inquiries from domestic mill buyers were very light. No sales were reported. Most mills have
covered their raw cotton needs. 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. Peru mills inquired for cotton qualities of color \
41 and 42, leaf 4, and staple 35 and 36 for September/October shipment. Chinese mills
inquired for cotton qualities of color 31, leaf 3, and staple 37 for July-September shipment.
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 higher. Trading of
CCC-loan equities was inactive. No forward contracting was reported.
Cotton was being delivered in fulfillment of previously contracted lots.
Daytime temperatures were in the mid-80s to high 60s. Nighttime temperatures
were in the high 50s elevating into the high 60s. A mix of cloudy and sunny
weather conditions dominated the Memphis territory. All fieldwork is
complete, and planting is at a halt for now. According to the U.S. Drought
Monitor, regional soil moisture was rated majority abnormally dry.
Producers carefully monitored the prices of competing commodities hoping
for a slight change in the price of cotton. 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 higher. Trading of
CCC-loan equities was inactive. No forward contracting was reported.
Cotton was being delivered in fulfillment of previously contracted lots.
Daytime temperatures were in the high 80s to mid-60s. Nighttime temperatures
were in the low 60s rising into the high 60s. Sunny weather conditions brought
dry and timid weather to the region. Fieldwork was reported normal, but
producers are in hope for a supply of rain to replenish moisture to the soil.
According to the U.S. Drought Monitor soil moisture was rated normal. Producers
carefully monitored the prices of competing commodities hoping for a slight
change in the price of cotton. Virtual and in-person regional industry meetings
were attended by all interested parties.
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 higher.
Producer interest in forward contracting was light. Trading of
CCC-loan equities was light. Foreign mill inquiries were moderate.
Mostly overcast skies with some sunshine was observed in the Upper Coast.
Daytime temperatures were in the upper 80s with nighttime temperatures in
the mid-to-upper 70s. Planting continued and was growing nearer to
completion. Early planted fields were making good progress. Temperatures
in the Rio Grande Valley were in the low 90s at the beginning of the
period, but warmed into the low 100s at the end of the period. Stands
continued to advance in the Rio Grande Valley and parts of South Texas,
but wet field conditions from heavy rainfall slowed fieldwork for some
producers. Some locales received up to four and a half inches of
precipitation. Sunshine and hot temperatures are in the nearby forecast.
Weather conditions in the Blackland Prairies were moderate with mostly
cloudy skies and sunshine. Daytime temperatures in the uppers 80s to low
90s. Reported rainfall in the region was measured at three-quarters of
an inch. Insect pressures from pests like thrips should be treated and monitored.
In Kansas and Oklahoma, planting continued in fields, but soft and wet soils delayed
fieldwork in areas that received rainfall. Parts of Oklahoma received around one and
a half inches of moisture and parts of Kansas received a quarter of an inch. Early
planted fields continued to make progress. Additional chances for scattered showers
were in the nearby forecast. Dryer weather is needed to firm soils in order to
continue fieldwork. Insect pressures are expected to be a concern and should be
monitored.
West Texas
Spot cotton trading was moderate. Supply was moderate. Demand was light. Producers
price ideas were firm. Trading of CCC-loan equities was inactive. Average local
spot prices were higher. Foreign mill inquiries were moderate.
Daytime high temperatures were in the 70s to low 80s. Daily scattered showers
brought much needed precipitation to the region. Some locales received a lot
of rain too quickly which caused flooding. Local sources reported a few
flooded fields in the Panhandle. No damage to Panhandle fields was reported.
Rains delayed planting around the Lubbock area as fields were too wet to plant.
Some playa lakes formed in a few fields in areas that received heavy rainfall.
Showers remain in the forecast. Planting to meet insurance cut-off dates are
June 5 for Lubbock and June 10 for Lamesa. Industry members attended the Texas
Cotton Association meeting in San Antonio, Texas.
Trading
East Texas
A moderate volume containing mostly color 52 and better, leaf 1-4, staple 33 and
longer, mike averaging 41.9, strength averaging 28.8, and uniformity averaging
80.7 sold for around 68.00 cents per pound, FOB warehouse (compression charges
not paid).
A light volume of Kansas cotton color 12 and better, leaf 2 and 3, staple mostly
37, mike averaging 40.2, strength averaging 32.2, and uniformity averaging 80.5
sold for around 82.00 cents, FOB car/truck (compression charges not paid).
A moderate volume of Kansas cotton color 31 and better, leaf 2 and 3, staple
mostly 36 and 37, mike averaging 37.4, strength averaging 31.8, and
uniformity averaging 80.3 sold for around 76.00 cents, same terms as above.
In Oklahoma, mixed lots containing cotton color 41 and better, leaf 2-5, staple
35 and longer, mike 30-38, strength 30-35, and uniformity 78-82 sold for 63.50
to 79.50 cents, same terms as above.
A light volume of CCC-loan equities sold for around 13.75 to 19.50 cents.
West Texas
A heavy volume of color 31 and better, leaf 3 and better, staple 36 and
longer, mike averaging 40.5, strength averaging 31.0, uniformity
averaging 80.9, with 100 percent extraneous matter sold for around 76.25
cents per pound, FOB car/truck (compression charges not paid).
A similar lot containing a heavy volume of color 41, and leaf 4, with 100
percent extraneous matter sold for around 70.25 cents, same terms as above.
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 higher. Foreign mill inquiries were light.
Temperatures were in the high 90s in Arizona. Flood warnings continued for southern Maricopa
County, due to dam releases. No rainfall was recorded in the period. Blooming was prevalent
in the Yuma Valley. Bolls were beginning to form. Local sources reported the crop made good
progress in central Arizona and in Safford.
Partly cloudy skies and temperatures were in the 90s, near the average for this time of year
for New Mexico and El Paso, Texas. No precipitation was recorded for southern New Mexico or
El Paso, Texas. Monsoon activity in eastern New Mexico drifted into west Texas in the period.
Some storm damage was reported in a few New Mexico fields from hail damage in the previous
period. No insect pressures were reported. Overall, the crop made good progress.
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 higher. Foreign mill
inquiries were light.
Daytime high temperatures were in the 80s. Overnight lows were in the high 50s to low 60s.
Snowmelt continued to impact low-lying fields and orchards. Flood warnings remained active.
Rivers, creeks, and reservoirs were full. No significant insect pressures were reported.
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 90s for the Far West. Flood warnings
remained active in Arizona and California as high mountain snowpack melts and
from dam releases. The Tulare Lake in the San Joaquin Valley of California is
growing, but is not deemed a threat to nearby towns. Hail damage was reported in
some Safford, Arizona fields. Those fields were replanted. Monsoon activity
brought cloudy conditions and rain into eastern New Mexico and Lubbock, Texas
territory. Flood warnings were in effect for the Lubbock are as daily rainfall
continues. Official reports totaled 2.5 inches, but several locales reported more.
Overall, the AP crop was in good shape. No significant insect pressures were reported.
Trading
Desert Southwest
A light volume of New Mexico cotton color mostly 41 and better, leaf 3, staple 36 and
longer, mike averaging 41.9, strength averaging 32.2, and uniformity averaging 81.3
sold for around 79.25 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.
