Spot quotations averaged 248 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 79.00
cents per pound for the week ending Thursday, July 20, 2023. The weekly
average was up from 76.52 cents last week, but down from 104.04 cents
reported the corresponding period a year ago. Daily average quotations
ranged from a low of 77.37 cents Friday, July 14 to a high of 80.57 cents
Thursday, July 20. Spot transactions reported in the Daily Spot Cotton
Quotations for the week ended July 20 totaled 7,714 bales. This compares
to 13,968 bales reported last week and no spot transactions reported the
corresponding week a year ago. Total spot transactions for the season were
763,154 bales compared to 1,624,146 bales the corresponding week a year ago.
The ICE October settlement price ended the week at 85.93 cents, compared to
82.79 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 higher. Trading of
CCC-loan equities was inactive.
A mix of sunny and cloudy skies were observed across the lower Southeast
during the period. Seasonably hot daytime high temperatures were in the
90s and humidity levels remained high. Scattered thunderstorms brought
moisture to areas throughout the region during the week. The heaviest
weekly accumulations of 2 to 5 inches were recorded along the Gulf and
Atlantic coastal areas. Field flooding and increased weed pressure was
reported in these areas. Producers applied land plaster to increase
productivity and fungicide to combat disease pressure. In Georgia, organic
cotton producers cultivated fields to mechanically control weeds. Squaring
was nearing completion and boll-setting was well underway.
Overcast to sunny conditions prevailed across the upper Southeast during the
period. Seasonably hot daytime temperatures were in the 90s. Scattered showers
brought pockets of moisture to cotton growing areas of the eastern Carolinas
and Virginia throughout the week. Precipitation totals measured from trace
amounts to around 1 inch of moisture. The crop remained around 10 days behind
in parts of the Carolinas due to cool temperatures and late germination early
in the growing season. However, the crop responded well to hot temperatures
and increased heat units in recent weeks which invigorated plants.
Textile Mill
No domestic mill inquiries or sales were reported. Most domestic mills reported
that their raw cotton needs were covered throughout the fourth quarter of 2023.
Mill buyers remained cautious and managed building inventories by reducing
operating schedules.
Demand through export channels was moderate. Reports indicated competitively
priced foreign growths had decreased demand for U.S. cotton. Agents
throughout the Far East inquired for any discounted styles of cotton.
Trading
A light volume even-running lot containing color 21 and 31, leaf 2 and 3,
staple 37 and longer, mike 35-49, strength 25-27, and uniformity 80-82
sold for around 68.00 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 higher. Trading of CCC-loan equities was
inactive. No forward contracting was reported.
Strong thunderstorms brought more severe weather and nearly one and one-half inches
of accumulated moisture during the report period, including hail damage to crops in
the Bootheel of Missouri. Overnight power outages were again reported in many parts
of the Memphis area. Daytime temperatures soared into the 90s, with low temperatures
in the 70s. The recent rainfall resulted in the improvement in soil moisture; pockets
of abnormally dry conditions persisted in northeastern Arkansas, the Bootheel of
Missouri, and western Tennessee. Producers continued irrigating to try to keep up
with water requirements as the crop advanced to the boll setting stage of development.
Producers applied crop protection chemicals to control weeds, plant bugs, and spider
mites as necessary. According to the National Agricultural Statistics Serviceís (NASS)
Crop Progress report, released on July 17, cotton squaring neared completion at 93
percent in Arkansas, 87 in Missouri, and 83 percent squared in Tennessee. Arkansas was
near the five-year average; Missouri and Tennessee were about two weeks ahead of the
five-year average. NASS also reported that cotton setting bolls was at 61 percent in
Arkansas, 10 in Missouri, and 30 percent in Tennessee; the crop condition in Arkansas
was mostly good to excellent and fair to good in Missouri and Tennessee. Virtual and
in-person industry meetings were being planned; attendance was very good at the
Southern Cotton Ginners Associationís annual district meeting held on Wednesday,
July 18 in Lake Village, Arkansas.
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. A light volume of forward contracting was reported.
Hot, partly cloudy, and humid climatic conditions prevailed during most of the report
period. Daytime temperatures were in the high 90s. Heat advisories remained in effect
in many areas throughout the territory. Low temperatures were in the 70s. Areas of
abnormal dryness persisted in parts of central Mississippi, which received less than
one-half of an inch of precipitation during the report period. Most other areas
received upwards of 2 inches of accumulated moisture, which was very beneficial to the
rapidly developing bolls. According to the National Agricultural Statistics Serviceís
(NASS) Crop Progress report, released on July 17, cotton squaring in Louisiana had
reached 83 percent, while Mississippi advanced to 76 percent. The figure for Louisiana
was about two weeks behind the five-year average; Mississippi was right at the five-year
average. NASS also reported that the cotton setting bolls was at 45 percent in Louisiana
and 29 in Mississippi. Insect pressure from plant bugs was moderate and fields were
treated to control infestations; spider mite populations diminished in proportion to the
volume of precipitation received from field to field. Local experts reported that some
fields were very dry, and others were late due to adverse weather conditions at planting
time. Virtual and in-person industry meetings were being planned; attendance was good at
the Southern Cotton Ginners Associationís annual district meeting held on Wednesday, July
19 in Rayville, LA.
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 light. Demand was light.
Average local spot prices were higher. Producer interest in forward contracting was light.
Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest was
best from China, Korea, and Taiwan.
Bolls were opening and harvesting will expand after grain is harvested in the Rio Grande Valley
with daytime high temperatures in the upper 90s to low 100s. Hard-lock bolls following rainfall
earlier in July were reported in dryland fields. Treatments for stink bugs and whiteflies
continued to be applied where needed to protect the bolls and lint quality. Defoliants were
applied in the Coastal Bend and bolls were popping open. Some producers started harvesting.
Stands struggled in the Upper Coast. Stands in south Texas were at peak bloom. Drought and high
temperatures in the upper 90s to upper 100s greatly impacted the crop in the Blackland Prairies.
Blooming was underway. Rainfall would be beneficial. Some fields neared cut-out. Scouting continued
and treatments were applied as needed for stink bugs.
In Kansas, daytime high temperatures were in the low 90s to mid-100s. Some areas received rainfall
that helped alleviate heat stress and progressed stands. Producers applied herbicide and plant
growth regulators where the fields were firm enough to support equipment. According to the National
Agricultural Statistics Serviceís (NASS) crop progress report released on July 17, squaring was at
72 percent, near the 68 percent five-year average. In Oklahoma, stands advanced with recent rainfall.
Squaring reached 32 percent, down 20 points from the 52 percent five-year average, according to NASS.
West Texas
Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light.
Average local spot prices were higher. Producer interest in forward contracting was light.
Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest was best
from China, Korea, and Taiwan.
Mainly hot and sunny conditions prevailed with daytime high temperatures in the upper 80s to
mid-100s. The region was under excessive heat watches and warnings, and heat advisories.
Thunderstorms early in the period brought a trace amount of rainfall with up to 2 inches of
precipitation in some areas. The additional moisture was quickly absorbed and helped ease heat
stress for a short duration. Yield expectations significantly decreased following limited
rainfall and excessive heat during the month of June on dryland stands. Irrigated fields advanced
and had begun to bloom. Herbicide was applied to control weeds. Fertilizer and plant growth
regulators were applied. Insect pressure was light in some fields, and heavy at other locations.
Applications were applied where needed for fleahoppers. Field days and meetings were held.
Trading
East Texas
In Kansas, a mixed lot containing a heavy volume of color 21-32, leaf 2-5, staple 35, mike
39-47, strength averaging 32.1, and uniformity 79-81 sold for around 75.75 cents per pound,
FOB car/truck (compression charges not paid).
A lot containing a moderate volume of color 21-41, leaf 4-6, staple 37, mike 31-40, strength
31-34, uniformity averaging 80.7, and 75 percent extraneous sold for around 68.25 cents, same
terms as above.
In Oklahoma, a heavy volume mixed lot consisting of color 21-41, leaf 2-5, staple 38, mike
32-49, strength 29-35, and uniformity 79-82 sold for around 75.75 cents, same terms as above.
Lots containing a moderate volume of color 21, 31, 32, and 42, leaf 3-5, staple 37-38, mike
33-46, strength 29-32, uniformity 79-32, and 75 percent extraneous matter sold for 69.00
to 71.75 cents, same terms as above.
West Texas
A light volume of color 21-41, leaf 2-5, staple 37, mike 35-44, strength 29-34, and uniformity
78-82 sold for around 80.25 cents per pound, FOB car/truck (compression charges not paid).
Mixed lots containing a light volume of color 21 and 31, leaf 2-4, staple 35-37, mike 35-53,
strength 29-34, uniformity 79-83, and 25 percent extraneous matter sold for 76.50 to 77.00
cents, same terms as above.
A light volume of color 21 and 31, leaf 2-5, staple 37, mike 36-54, strength 28-32, uniformity
78-83, and 75 percent extraneous matter sold for around 75.50 cents, same terms as above.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or
domestic mill activity was reported. Average local prices were higher. Foreign mill
inquiries were light.
Excessive heat advisories and warnings continued for the DSW. Arizona broke several daily
and weekly weather records. Daytime high temperatures were in the high 110s throughout the
state. In central Arizona, daily high temperatures reached 118 degrees. The Phoenix area
broke the record for the most days under excessive heat warnings from 8 days to 16 days.
On July 18, the city of Phoenix also broke the record for the most consecutive days (20
days) at 110 degrees or higher. No monsoon moisture was recorded in the period. The crop
in central and western Arizona experienced both Level 1 and Level 2 heat stress. Some
shedding of bolls was reported. Producers alleviated heat stress the best they could with
irrigation. Triple-digit temperatures continued in New Mexico and El Paso, Texas. Monsoon
activity produced thunderstorms in higher elevations. Crop water demands increased. Sources
reported the overall crop outlook was good. Blooming continued in DSW.
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 moderate for new-crop cotton.
Excessive heat warnings were in effect throughout California. In the SJV, triple-digit
temperatures reached into the high 100s Monsoon activity produced pop-up thunderstorms
in western Fresno County, which contained hail. No reports of damage to cotton. Local
sources reported that the crop looked good, but lygus pressure decreased the bottom crop.
Sources estimated below average yields. The crop was blooming. Producers continued to
treat for lygus.
American Pima (AP)
Spot cotton trading was slow. Supplies were moderate. Demand was light. No forward contracting
or domestic activity was reported. Average local spot prices were higher. A moderate volume of
2022-crop remains unsold. Foreign mill inquiries were moderate.
Excessive heat advisories and warnings continued for the Far West. A high-pressure system off the
coast of California kept the region in daily triple-digit temperatures. Daytime high temperature
records were broken as well as consecutive days of over 100 degrees for the region. In central
Arizona, daily high temperatures reached 118 degrees. The Phoenix area broke the record for the
most days under excessive heat warnings from 8 days to 16 days. Monsoon moisture was reported in
higher elevations of the Desert Southwest. Producers alleviated heat stress with irrigation.
Boll-setting advanced throughout the territory. Treatments for lygus were made in the San Joaquin
Valley (SJV) of California. Whitefly pressure increased in the SJV, and treatments were made. No
significant pest pressures were reported in the Desert Southwest. Overall, the crop made good
progress in the Far West. The Visalia Classing Office wishes to thank all the Far West industry
participants for attending and approving the 2023 American Pima Standards Matching process.
It was a success!
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
A light volume of San Joaquin Valley cotton
color 2, leaf 2, and mostly staple 48 was sold.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #14
FOR UPLAND COTTON
July 20, 2023
The Department of Agriculture’s Commodity Credit Corporation announced a special import quota for upland cotton
that permits importation of a quantity of upland cotton equal to one weekís domestic mill use. The quota will be
established on July 27, 2023, allowing importation of 8,623,379 kilograms (39,606 bales of 480-lbs) of upland cotton.
Quota number 14 will be established as of July 27, 2023 and will apply to upland cotton purchased not later than
October 24, 2023 and entered into the U.S. not later than January 22, 2024. The quota is equivalent to one week’s
consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period February 2023
through April 2023, the most recent three months for which data are available.
Future quotas, in addition to the quantity announced today, will be established if price conditions warrant.
