Spot quotations averaged 119 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 80.06 cents per pound
for the week ending Thursday, August 24, 2023. The weekly average was down from 81.25
cents last week and from 121.80 cents reported the corresponding period a year ago. Daily
average quotations ranged from a low of 79.14 cents Friday, August 18 to a high of 81.07
cents Wednesday, August 23. Spot transactions reported in the Daily Spot Cotton Quotations
for the week ended August 24 totaled 7,270 bales. This compares to 3,757 bales reported last
week and 2,940 bales reported the corresponding week a year ago. Total spot transactions
for the season were 16,686 bales compared to 6,751 bales the corresponding week a year ago.
The ICE October settlement price ended the week at 86.09 cents, compared to 84.36 cents last
week.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were light.
Demand was very light. Average local spot prices were lower. Trading of
CCC-loan equities was inactive. No forward contracting was reported.
Sunny skies and hot temperatures dominated the weather pattern in the lower
Southeast region during the period. Temperature highs during the day were
in the mid-to-upper 90s. Overnight temperatures were in the mid-to-upper 70s.
Extreme heat and high temperatures prompted Heat Advisory Warnings for many
areas in the territory. Trace amounts of rainfall were recorded in much of
the lower Southeast from light showers. According to the National Agricultural
Statistics Serviceís Crop Progress report released on August 21, crop conditions
in the Southeast were mostly fair to good in all states. The record-breaking
temperatures and extreme heat caused a decline in plant growth and reduced yield
potential in some areas. The crop continued to make good progress. However, cooler
temperatures at night are needed to reduce plant stress. Pesticides were being
applied as needed, but no critical insect pressures were reported.
The upper Southeast experienced predominately hot and dry weather conditions.
Daytime high temperatures in the period were in the low-to-mid 90s. Nighttime
temperatures were in the upper 60s and low 70s. Accumulated rainfall totals
ranged from trace amounts to over one-quarter of an inch of precipitation.
According to local experts, most producers are pleased with the progress of
the crop. Record breaking temperatures and extreme heat stressed plants, and
anticipated yields were slightly down from previous expectations. Producers
continued spraying insecticides as needed to manage bug populations, but no
heavy insect pressure was reported.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, staple
34 for first quarter through fourth quarter 2024 delivery. Most domestic mills
reported that their raw cotton needs are 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. Agents throughout
the Far East inquired for any discounted styles of cotton.
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 lower. Trading of CCC-loan equities was inactive.
No forward contracting was reported. Business was very slow.
Excessive heat dominated the weather pattern during the week. Daytime high temperatures rose to
the 100s, with the heat index topping 114 degrees. Producers struggled to maintain adequate
soil moisture as the crop neared completion. Producers applied crop protection chemicals to
control plant bugs as necessary in the late-planted fields. More fields had reached cutout, and
boll opening advanced steadily in Arkansas. Cloudy conditions in Missouri within recent weeks
slowed the crop there and caused some boll shedding. According to the National Agricultural
Statistics Serviceís Crop Progress report released on August 21, cotton bolls opening was at 22
percent in Arkansas and 8 percent in Tennessee; no open bolls were reported in Missouri. Local
experts and producers reported that the crop condition was mostly good to excellent in Arkansas,
Missouri, and Tennessee. Producers prepared harvest equipment while gins were making repairs and
servicing machinery. 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 lower. Trading of CCC-loan equities was inactive. No forward
contracting was reported. Business was very slow.
Extremely hot and dry weather conditions prevailed during most of the report period. Daytime high
temperatures soared into the 100s, with the heat index reaching as high as 114 degrees in some
places. Low temperatures were in the 70s. No rainfall was reported during the week, and the
extended outlook calls for more hot and dry conditions. Many fields had reached cutout and were no
longer susceptible to insect damage. Local experts reported that the crop was struggling to finish
under dry conditions. According to the National Agricultural Statistics Serviceís Crop Progress
report released on August 21, cotton bolls opening had reached 36 percent in Louisiana and 20 in
Mississippi. According to the U.S. Drought Monitor, areas of abnormally dry to moderate drought
deteriorated to severe in parts of Louisiana. Virtual and in-person industry meetings were being
planned. Producers were busy harvesting competing crops.
Trading
North Delta
No trading activity was reported.
South Delta
No trading activity was reported.
Southwestern Markets Regional Summary
East Texas-South Texas
Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate.
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. Interest was best from China,
Korea, and Taiwan.
Final harvesting continued in the Rio Grande Valley (RGV) and Coastal Bend. Local sources reported
around 90 percent of the fields have been harvested. Modules continued to be hauled from the fields
to the gin yards. Most harvested fields have been shredded. Tropical Storm Harold brought rainfall
to the RGV. Some isolated areas received up to 8 inches, but most areas received a light amount of
moisture. The soil dried quickly and caused only a slight delay in hauling modules from the fields
to the gin yards at most locations. Harvesting was interrupted in spots from rainfall, but made
good progress overall in the Upper Coast. Producers worked long hours harvesting the better stands
ahead of the thunderstorms brought by Harold. Ginning expanded in the Upper Coast. In the Blackland
Prairies, dryland stands deteriorated with daytime high temperatures in the low 100s to mid-100s.
Defoliants and boll openers were applied in the Blackland Prairies ahead of harvesting.
West Texas-Kansas-Oklahoma
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was very light.
Average local spot prices were lower. 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.
Stands deteriorated under sunny, hot conditions on the High Plains with daytime high temperatures in
the mid-90s to low 110s. Fruit was shed at some locations and expected to yield below average at
harvest. Stands fared better if they had caught rain during the growing season and where it was
possible to maintain irrigation water. Pockets of advancing stands existed that were expected to
produce average and above average yields. Some locations received light amounts of rainfall, but
coverage was spotty. Insurance adjusters will begin boll counts on September 15 to determine if stands
will be harvested or abandoned. Regional gin meetings were being held.
In Kansas, stands progressed although record high temperatures were reached in the mid-90s to mid-100s.
Fruit retention was good. Insect pressure was light. In Oklahoma, the well-irrigated stands advanced,
but many dryland fields suffered. Excessive daytime high temperatures in the low to upper 100s took a
toll on the dryland crop. Stands that were irrigated were expected to yield two to three and a half bales
per acre.
Trading
East Texas-South Texas
No trading activity was reported.
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).
In Kansas, a light volume 2022-crop cotton mostly color 22, leaf 2 and 3, staple 35, mike averaging
43.0, strength averaging 30.3, and uniformity averaging 79.9 sold for around 73.50 cents, same terms
as above.
In Oklahoma, a light volume of 2022-crop cotton color 21-41, leaf 2-4, staple 37 and 38, mike 40-45,
strength 31-34, and uniformity averaging 82.2 sold for around 83.50 cents, same terms as above.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Producers noted ICE December futures
closed over 85 cents. No forward contracting or domestic mill activity was reported. Average local
prices were lower. Foreign mill inquiries were light.
Mostly cloudy conditions with temperatures in the mid-100s were prevalent in central Arizona. Flash
flooding alerts were activated for the Yuma territory due to Hurricane Hilary entering the area
from the south. Local sources reported rainfall early in the reporting period, but no damage to
cotton fields was reported. Strong winds the following day dried fields, and producers resumed
harvesting on Monday, August 21. Modules were trucked to the gin yard. In the Safford Valley,
overcast conditions and light precipitation was reported late in the week. Daytime high temperatures
were in the high 80s to low 90s. The Arizona crop made good progress. A mix of sun and clouds kept
temperatures mostly in the mid-to-high 90s for New Mexico and El Paso, TX.
A tropical disturbance from the Gulf of Mexico pushed scattered thunderstorms into the area and dropped
temperatures into the 70s late in the period. Heavy rains moved through New Mexico, and flood advisories
were issued. Rainfall amounts neared one-quarter of an inch for the area. Local sources reported the hot,
dry summer and light insect pressure pushed the crop to its best potential. Bolls are cracking open.
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 were mostly in the high 90s. Remnants of Hurricane Hilary brought cloudy conditions,
strong winds, and moisture to the Valley. The southern San Joaquin Valley (SJV) took the brunt of
the moisture. Precipitation amounts ranged from 1 inch up to 2 inches. No damage to cotton fields
were reported. In central and northern SJV, rainfall amounts varied from one-tenth of an inch up
to one-half of an inch. Winter rains increased insect pressure, making this an expensive crop.
Sources reported a concern about small boll size. Overall, the crop continued to make good progress.
The California Department of Food and Agriculture reported no cotton seed bugs were found in the
SJV. They do continue to find the pest in southern California. Monitoring will continue in cotton
fields this fall.
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. A moderate volume of 2022-crop
remains unsold. Shippers continue to offer 2022-crop cotton. Foreign mill inquiries were light.
Unusual August weather occurred when remnants of Hurricane Hilary off of the Pacific coast and Tropical
Storm Harold from the Gulf of Mexico brought rains and strong winds to the Far West region. Isolated
areas flooded. Reports indicated that around one-quarter of an inch up to two inches of rainfall was
received in cotton-growing areas. Flash flooding alerts were issued for southwestern Arizona early in
the period. Producers moved modules to higher ground ahead of the storm. Harvesting was at a standstill
over the weekend, but resumed on Monday, August 21. In the San Joaquin Valley (SJV) of California, no
damage was reported to cotton fields, although some vineyards and almond orchards being damaged by
strong winds in the southern SJV was reported. The SJV crop continued behind schedule. Local sources
lowered yield expectations as insect pressure was intense. Producers reported a light bottom crop and
noted small-sized bolls. Hot, dry conditions along with plenty of water advanced the New Mexico and El
Paso, Texas crops. The hot temperatures helped the late-planted cotton catch up. Bolls were cracking
open in the most mature fields.
Trading
Desert Southwest
No trading activity was reported.
San Joaquin Valley
No trading activity was reported.
American Pima
No trading activity was reported.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #19
FOR UPLAND COTTON
August 24, 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 August 31, 2023, allowing importation of
12,641,719 kilograms (58,062 bales of 480-lbs) of upland cotton.
Quota number 19 will be established as of August 31, 2023 and will apply to upland cotton purchased not later than November 28, 2023 and entered
into the U.S. not later than February 26, 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.
