Spot quotations averaged 29 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 81.25 cents per pound for
the week ending Thursday, August 17, 2023. The weekly average was up from 80.96 cents last
week, but down from 122.67 cents reported the corresponding period a year ago. Daily average
quotations ranged from a season high of 84.00 cents Friday, August 11 to a season low of
79.04 cents Thursday, August 17. Spot transactions reported in the Daily Spot Cotton Quotations
for the week ended August 17 totaled 3,757 bales. This compares to 3,956 bales reported last
week and 1,737 bales reported the corresponding week a year ago. Total spot transactions for
the season were 9,416 bales compared to 3,811 bales the corresponding week a year ago. The ICE
October settlement price ended the week at 84.36 cents, compared to 87.29 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 firm. Trading of CCC-loan equities was inactive.
Producers forward contracted a light volume of 2023-crop cotton.
A mix of sunny and cloudy skies with some scattered showers moved through the upper
Southeast. Daytime high temperatures were in the mid-to-upper 80s and 90s. Overnight
temperatures were in the mid-to-upper 60s and 70s. Rainfall totals were reported as nearly
one and one-quarter of an inch with the heaviest accumulations recorded in South Carolina.
More rainfall is needed in the upper Southeast area to maintain expected yields and to
reduce boll loss. Some parts of the region remained in drought-like conditions.
Partly cloudy skies prevailed throughout the lower Southeast region during the period.
Daytime high temperatures were in the mid-to-upper 80s and 90s. Nighttime temperatures
were in the mid-60s to low 70s. Light showers brought precipitation to the lower Southeast
territories. Total accumulated moisture in the region ranged from less than one inch to
nearly two and one-quarter inches with the heaviest accumulations in Alabama. Local experts
reported that high temperatures and extreme heat has caused a decline in plant growth and
development. More moisture is needed in the lower Southeast to eliminate drought conditions.
Producers were spraying fields for insects as needed.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, staple 34 for January
through October 2024 delivery. Most domestic mills reported that their raw cotton needs were
covered throughout the fourth quarter of 2023. Some mills reported taking additional downtime
due to soft demand for their finished product.
Demand through export channels was moderate. Mill buyers in Costa Rica, Indonesia, and Vietnam
inquired for a moderate volume of color 31, leaf 3, staple 36 and 37 for October 2023 through
March 2024 shipment.
Trading
A heavy volume mixed lot containing mostly color 31 and better, leaf 2-4, staple 35 and longer,
mike averaging 44.0, strength averaging 30.4, and uniformity averaging 81.3 sold for around 89.00
cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free
storage).
A light volume of color 41 and better, leaf 3 to 5, staple 34 and longer, mike 40-45, strength
averaging 31.5, and uniformity averaging 81.1 sold for around 89.00 cents, same terms as above.
South Central Markets Regional Summary
North Delta
Spot cotton trading was slow. Supplies of available cotton were light. Demand was very light.
Average local spot prices were firm. Trading of CCC-loan equities was inactive. No forward
contracting was reported.
A band of severe weather brought thunderstorms that produced around one-half of an inch of rain in
the Memphis territory early in the week. Temperatures moderated once the front moved through. High
temperatures were in the 80s, and overnight lows dipped into the 60s. Local experts reported that
a late crop still required significant heat units to maximize yields. Pockets of abnormally dry
conditions contracted in northeastern Arkansas, the Bootheel of Missouri, and western Tennessee as
the result of recent precipitation. Some producers irrigated to maintain adequate soil moisture as
bolls continued to fill. Producers applied crop protection chemicals to control plant bugs as necessary.
Some fields had reached cutout, and open bolls were reported in a few areas. According to the National
Agricultural Statistics Serviceís Crop Progress report released on August 14, cotton bolls opening
was at 6 percent in Arkansas and 4 percent in Tennessee; no open bolls were reported in Missouri.
Local experts and producers reported that the crop condition in Arkansas was mostly good to excellent,
excellent in Missouri, and good in Tennessee. Virtual and in-person industry meetings were being
planned.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very light.
Average local spot prices were firm. Trading of CCC-loan equities was inactive. A light volume of
forward contracting was reported.
Seasonably hot and humid weather conditions prevailed during most of the report period. Daytime
temperatures were in the 80s and 90s. Low temperatures were in the 70s. According to the National
Agricultural Statistics Serviceís Crop Progress report released on August 14, cotton bolls opening
had reached 22 percent in Louisiana and 13 percent in Mississippi. Insect pressure from plant bugs
was moderate, and fields were treated to control infestations. Local experts reported that the crop
was advancing under dry conditions. Many fields had reached cutout, and others were a week or two
away from finishing. According to the U.S. Drought Monitor, pockets of abnormally dry to moderate
drought existed in parts of Louisiana and Mississippi. Virtual and in-person industry meetings were
being planned.
Trading
North Delta
A light volume of color mostly 31 and 32, leaf 4 and better, staple 37 and longer, mike 37-49, strength
29-32, and uniformity 80-82 sold for around 83.50 cents per pound, FOB car/truck (Rule 5, compression
charges paid).
Southwestern Markets Regional Summary
East Texas-South Texas
Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light.
Average local spot prices were firm. Producer interest in forward contracting was light. Trading
of CCC-loan equities was inactive. Foreign mill inquiries were light to moderate. Interest was best
from Korea, Mexico, and Taiwan.
Harvesting continued in the Rio Grande Valley and the Coastal Bend. Harvesting expanded in the Upper
Coast, and a few more gins opened for the season. Most gins were operating two shifts, and some were
pressing bales around the clock if employees were available. The Corpus Christi Classing Office added
a night crew to keep pace with the incoming sample receipts to be graded. Some fields yielded less
than expected at harvest. Bolls were light and contained a light number of seeds. Daytime high
temperatures were in the upper 90s to mid-100s. Heat advisories and dangerously high heat indexes
were issued by the National Weather Service. Defoliants and boll openers were applied in the Blackland
Prairies. Bolls were popping open. Harvesting activities were expected to begin in the next two to
three weeks.
West Texas-Kansas-Oklahoma
Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light. Average
local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan
equities was inactive. Foreign mill inquiries were light to moderate. Interest was best from Korea, Mexico,
and Taiwan.
Stands struggled under sunny, hot conditions on the High Plains, with daytime high temperatures in the
low 80s to upper 110s. Some locations received light amounts of rainfall, and heavier amounts were
received in fields around Abilene and San Angelo. Recent rainfall in the Panhandle helped boll retention.
Some fields were in mid-to-late bloom. Irrigation was applied. Some fields were assessed for crop insurance
purposes. Regional gin meetings were held. Insect pressure was light, but producers monitored for lygus
and bollworms.
In Kansas, western cotton stands suffered in areas that had not received the moisture needed to
progress the crop. A light amount of rain was received that contained hail and high winds that stripped
leaves. Central and south-central counties received additional rainfall and expected stands to produce
average and above-average yields. Pratt, KS received more than three-fourths of an inch of precipitation
that helped the crop advance. Producers were encouraged and prepared for applying defoliants. Industry
members attended The Kansas Agricultural Summit that was held in Manhattan. In Oklahoma, irrigated
stands advanced. Excessive daytime high temperatures in the upper 80s to upper 110s took a toll on
the dryland crop, and many fields were abandoned. Beneficial rainfall was received in some locations,
but was not widespread.
Trading
East Texas-South Texas
A moderate volume of new-crop mostly color 11 and 21, leaf 2 and 3, staple 35, mike 35-43, strength
31-35, and uniformity 79-82 sold for around 82.25 cents per pound, FOB warehouse (compression charges
not paid).
A light volume of 2022-crop cotton color 41 and better, leaf 3 and better, staple 33 to 36, mike 41-51,
strength 27-33, and uniformity averaging 81.3 sold for around 71.50 cents, same terms as above.
West Texas-Kansas-Oklahoma
In Texas, a light volume of 2022-crop cotton color 31-43, leaf 3-7, staple 35-38, mike 34-48, strength
26-33, uniformity 78-82, and 75 percent extraneous matter sold for around 71.50 cents per pound,
FOB car/truck (compression charges not paid).
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 firm. Foreign mill inquiries were light.
Excessive heat warnings were in effect late week for Arizona. Daytime high temperatures were in the
high 100s to mid-110s. Partly cloudy conditions and monsoon activity produced scattered thunderstorms
with strong winds, rain, and hail around the area mid-week. Precipitation amounts varied between
one-tenth of an inch up to one-quarter of an inch. Chances for showers remained in the forecast over
the weekend, due to Hurricane Hilary off of Mexicoís Pacific coast. In Yuma, bolls were popping open.
Producers began defoliation in earnest last week. Harvesting began in the most mature fields. Modules
were trucked to the gin yard. Ginning was set to begin by September 1. Temperatures were mostly in the
high 90s in New Mexico and El Paso, TX. Rainfall was received mid-week. Precipitation amounts measured
around one-half of an inch. The crop made good progress. Producers continued to monitor for pests. No
insect pressure was reported. Gins finished up maintenance and final repairs.
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 steady. Foreign mill inquiries were moderate for
new-crop cotton.
Hot temperatures, mostly cloudy, and humid climatic conditions were prevalent in the week. Daytime
high temperatures were in the high 90s to low 100s. Brief, scattered showers were reported on Friday,
August 11. Traces of moisture were recorded. A disturbance off of Mexicoís Baja Peninsula is forecasted
to bring showers into the Valley mid-week. The crop made good progress. Bottom bolls were cracking open.
Producers scouted for pests and prepared equipment for harvest. Producers and industry members attended
annual meetings. Crop outlook for the 2024-crop was good considering there is plenty of water available.
American Pima (AP)
Spot cotton trading was inactive. Supplies were moderate. Demand was light. No forward contracting or
domestic activity was reported. Average local spot prices were steady. Producers continued to hold on
to a moderate volume of 2022-crop. Foreign mill inquiries were light. Interest was best for off-quality
cotton.Daytime high temperatures were in 90s to mid-110s. Monsoon activity produced scattered showers,
hail, and strong winds throughout the region. Precipitation accumulations measured from trace amounts
of moisture up to one-half of an inch. Chances for showers remained in the forecast over the weekend,
due to Hurricane Hilary off Mexicoís Pacific coast. The crop made good progress in the Far West.
Bolls were cracking open. Producers in western Arizona began defoliating the crop. Local sources
reported the Lubbock areaís harvestable crop acreage has shrunk, but surviving fields looked
promising. Cooperative extension agents encouraged producers to continue with insect sweeps to
detect late season pests. Final gin maintenance and repairs neared completion. Producers and
industry members attended annual meetings.
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
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 August 24, 2023, allowing importation of 12,641,719 kilograms (58,062 bales
of 480-lbs) of upland cotton.
Quota number 18 will be established as of August 24, 2023 and will apply to upland cotton purchased not
later than November 21, 2023 and entered into the U.S. not later than February 19, 2024. The quota is
equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate
for the period April 2023 through June 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.
