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    USDA: Weekly Cotton Market Review

    Cotton harvest. ©Debra L Ferguson

    Spot quotations averaged 80 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 81.72 cents per pound for the week ending Thursday,
    September 7, 2023. The weekly average was down from 82.52 cents last week and
    from 108.56 cents reported the corresponding period a year ago. Daily average
    quotations ranged from a season high of 84.57 cents Friday, September 1 to a
    season low of 78.51 cents Thursday, September 7. Spot transactions reported in
    the Daily Spot Cotton Quotations for the week ended September 7 totaled 11,118
    bales. This compares to 27,109 bales reported last week and 3,365 bales reported
    the corresponding week a year ago. Total spot transactions for the season were
    54,913 bales compared to 12,980 bales the corresponding week a year ago. The ICE
    October settlement price ended the week at 83.62 cents, compared to 88.10 cents last week.

    Southeastern Markets Regional Summary

    Spot cotton trading was moderate. Supplies and producer offerings were light.
    Demand was moderate. Average local spot prices were lower. Trading of CCC-loan
    equities was inactive.

    Overcast and wet conditions early in the period and over the weekend gave way to
    sunny and warm conditions later in the week across the lower Southeast. Seasonably
    hot daytime high temperatures were in the upper 80s to low 90s. Scattered, sporadic
    thunderstorms brought localized moisture to areas of the Gulf coast, central Alabama,
    and south Georgia. Precipitation totals measured from 1 to 3 inches. Producers
    continued to assess damage from Hurricane Idalia. Some plants remained tangled from
    high winds, and boll rot was a concern in some fields due to excessive moisture.
    Boll-setting advanced under hot conditions and bolls were cracking open; producers
    planned to defoliate some of the earliest planted fields in a couple weeks.

    Sunny conditions prevailed across the upper Southeast during the period.
    Seasonably hot daytime temperatures were in the 80s and 90s. Producers were
    assessing damage from Hurricane Idalia last week. Plants were blown around and
    some blooms were blown off plants. Wet conditions delayed fieldwork, but warm and
    sunny conditions helped bleach out lint and invigorate the crop, which remained behind
    in some areas.

    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 staggering operating schedules.

    Demand through export channels was moderate. Agents for mills in Korea purchased
    a moderate volume of color 31, leaf 3, and staple 37 for October/November shipment.
    Agents inquired throughout the Far East for any discounted styles of cotton.

    Trading

    A heavy volume of color 21 and 31, leaf mostly 2 and 3, staple 35 and longer, mike 37-42,
    strength 29-32, and uniformity 79-81 sold for around 85.00 cents per pound, FOB car/truck,
    Georgia terms (Rule 5, compression charges paid, 30 days free storage).

    A light volume even-running lot containing color mostly 41, leaf 4, staple 35, mike 35-39,
    strength 29-31, and uniformity 78-80 sold for around 82.25 cents, same terms as above.

    A moderate volume even-running lot containing color 41 and 51, leaf 3-5, staple 35 and 36,
    mike 37-38, strength 28-30, and uniformity 80-81 sold for around 81.25 cents, same terms as above.

    A moderate volume of color 41 and 51, leaf 4-6, staple 37-38, mike 28-36, strength 28-31, and
    uniformity 79-81 sold for around 74.00 cents, same terms as above.

    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 moderate. No forward
    contracting was reported.

    Hot temperatures and dry conditions remained in the North Delta early in the reporting period.
    Later into the week thunderstorms brought lighting and rain to parts of the Mid-South.
    Precipitation helped to cool hot conditions and lower temperatures. Daytime temperature
    highs were in the upper 90s with nighttime lows in the low-to-mid 70s. Favorable weather
    conditions and beneficial rainfall helped the crop to progress and maintain adequate soil moisture.
    Accumulated moisture totals ranged from less than one-half of an inch to over two and one-half
    inches. Bolls were starting to open in some fields, and several were reaching cutout. Defoliation
    had begun in some fields. According to the National Agricultural Statistics Serviceís Crop Progress
    report released on September 5, cotton bolls opening was at 49 percent in Arkansas and 18 percent
    in Missouri and Tennessee. Local experts and producers reported that the crop condition was mostly
    good to excellent in Arkansas, fair to good in Missouri, and good to excellent in 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.

    The weather pattern in the South Delta during the period was mostly hot and dry. Daytime
    temperature highs were in the upper 90s to the low 100s. Temperature lows were in the
    low-to-mid 70s. Late in the period, scattered thunderstorms brought over one-quarter of
    an inch of rainfall to parts of the South Delta. Fields were rapidly approaching cutout and
    bolls were starting to crack open in some fields. Defoliation had begun in some fields in
    Louisiana and harvest was nearing. Rainfall was mostly beneficial; however, in some parts of
    Louisiana abnormally dry drought conditions persisted. According to the National Agricultural
    Statistics Serviceís Crop Progress report released on September 5, cotton bolls opening
    progressed to 74 percent in Louisiana and 55 percent in Mississippi. Crop conditions in
    Louisiana were rated as mostly good and mostly fair to good in Mississippi. Virtual and
    in-person industry meetings were being planned. Producers continued to harvest competing crops.

    Trading

    North Delta

    A moderate volume of CCC-loan equities traded for 17.00 to 20.50 cents per pound.

    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 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.

    Harvesting was more than 90 percent completed in the Rio Grande Valley, Coastal Bend,
    and the Upper Coast. Ginning made good progress and some gins were close to the end
    of the season. According to local reports, the crop was easily moving through ginning
    equipment. Most of the modules had been trucked from the fields and accumulated on the
    gin yards. Heat advisories were in place with daytime high temperatures in the low 90s
    to low 100s. Overnight temperatures were in the 70s to 80s. The Upper Coast received a
    light amount of rain.

    In the Blackland Prairies, harvesting advanced and moved quickly through the fields.
    Yields were better than expected, considering the heat and lack of moisture during the
    growing season. Ginning began in the northern counties.

    West Texas-Kansas-Oklahoma

    Spot cotton trading was active. Supplies and producer offerings were light. Demand
    was 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.

    Bolls began to pop open with daytime high temperatures in the low 90s to upper 100s.
    Irrigated stands progressed, but dryland stands suffered. Excessively hot temperatures
    in the day and overnight continued to stress plants with limited periods of relief.
    Light amounts of beneficial rainfall were received in the Rolling Plains. Chances of
    rain increase in the forecast. Insurance adjusters will begin boll counts and determine
    which stands will be harvested. Insect pressure was light and treatments were applied as needed.

    In Kansas, heat stress set in with daytime temperatures in the upper 80s to low 100s. Some
    fields have had small bolls fall off the plants. Rainfall would be beneficial to retain bolls
    and maintain yield potential. Stands that had received timely rainfall advanced.

    In Oklahoma, sunny conditions prevailed with daytime high temperatures in the upper 90s to
    upper 100s. Irrigated stands advanced, but hot and dry conditions adversely affected the crop.
    Fruit shedding has been observed. Dryland and the irrigation districtís stands will be
    assessed by crop adjusters ahead of harvest.

    Trading

    East Texas-South Texas

    Even running lots containing a light volume of new-crop cotton color 31 and better, leaf 3
    and better, staple 35-37, mike 37-53, strength 29-33, and uniformity 79-83 sold for 84.75
    to 86.75 cents per pound, FOB warehouse (compression charges not paid).

    Lots containing a light volume of color 21 and 31, leaf 4 and better, staple 34-36, mike 43-53,
    strength 27-34, and uniformity 79-83 sold for 82.00 to 82.75 cents, same terms as above.

    Lots containing a heavy volume of color 22 and better, leaf 3 and better, staple 34-35,
    mike 41-46, strength 26-30, and uniformity 80-82 sold for 79.00 to 80.00 cents, same terms as above.

    A moderate volume of mixed lots containing color 32 and better, leaf 4 and better, staple 32-36,
    mike 33-44, strength 24-31, and uniformity 78-82 sold for 74.00 to 78.00 cents, same terms as above.

    West Texas-Kansas-Oklahoma

    In Texas, a light volume of 2022-crop cotton color 21-41, leaf 4 and better, staple 34-37,
    mike 34-51, strength 27-32, and uniformity 79-82 sold for 78.25 to 80.50 cents per pound,
    FOB car/truck (compression charges not paid).

    A moderate volume of old-crop cotton mostly color 21-41, leaf 3-6, staple 36-39, mike 25-36,
    strength 28-33, uniformity 78-82, and 25 percent extraneous matter sold for around 69.75 cents,
    same terms as above.

    In Kansas, mixed lots containing a light volume of 2022-crop cotton color 21 and 31, leaf 2-4,
    staple 33, mike 41-49, strength 29-31, and uniformity 78-80 sold for 72.00 to 74.25 cents, same terms as above.

    Western Markets Regional Summary

    Desert Southwest (DSW)

    Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was
    light. No forward contracting or domestic mill activity was reported. Average local prices
    were lower. Foreign mill inquiries were light.

    Rainfall was received across Arizona early in the reporting period, which cooled temperatures
    and helped alleviate heat stress. Yuma received over 2 inches of precipitation that helped
    moderate daytime high temperatures in the low 90s to mid-100s. Harvesting was delayed for a
    few days until fields firmed and moisture evaporated. Ginning will expand to two shifts next
    week. Harvesting was expected to begin in October for other locations in Arizona. Final
    irrigation was applied in eastern Arizona. For the rest of the state, cotton bolls opening was
    at 62 percent lagging behind the five-year average at 74 percent, according to the National
    Agricultural Statistics Serviceís (NASS) Arizonaís Crop Progress report released on September 5.
    The condition of the crop was rated 22 percent fair, 34 good, and 41 percent excellent. In New
    Mexico, the crop advanced with daytime high temperatures mostly in the upper 90s to low 100s.
    Bolls had not begun to open and irrigation water was applied. Producers anticipated above-average
    yields. Setting bolls was 68 percent compared to the five-average at 77 percent, and squaring had
    reached 92 percent complete. Crop condition was rated 8 percent poor, 39 fair, 17 good, and 36
    percent excellent, according to NASS. In El Paso, TX, stands advanced and irrigation water was
    applied. Annual ginning meetings were held to kick-off the season.

    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.

    Stands advanced with daytime high temperatures in the low 80s to low 90s. Bolls had begun
    to crack open. Defoliation was scheduled to begin next week, but most fields will be
    defoliated in 7 to 10 days. Insect pressure was light, but producers were monitoring for
    white fly and aphids. The crop condition was rated 95 percent good, according to the
    National Agricultural Statistics Serviceís Crop Progress report released on September 5.

    American Pima (AP)

    Spot cotton trading was inactive. Supplies were moderate. Demand was light. No forward
    contracting or domestic mill activity was reported. Average local spot prices were steady.
    Foreign mill inquiries were light.

    Fields in the San Joaquin Valley (SJV) advanced and received final irrigation water.
    Producers monitored aphids and white fly ahead of defoliation applications. Picker harvesting
    was initiated in Yuma after fields dried from receiving over 2 inches of rainfall early in the
    reporting period. The rest of Arizona was expected to begin harvesting in late September or
    early October. Producers in El Paso, TX, and New Mexico were encouraged with the progress of
    the crop. Stands advanced under plentiful sunshine and irrigation with daytime highs in the
    upper 90s to low 100s. Insect pressure was light. Annual ginning and association meetings
    were held ahead of harvesting activities, which were expected to begin in late September or early October.

    Trading

    Desert Southwest
    No trading activity was reported.

    San Joaquin Valley
    No trading activity was reported.

    American Pima
    Desert Southwest (DSW)

    USDA ANNOUNCES SPECIAL IMPORT QUOTA #21
    FOR UPLAND COTTON
    September 7, 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 September 14, 2023, allowing importation of 12,114,320 kilograms (55,640 bales of 480- lbs) of upland cotton.

    Quota number 21 will be established as of September 14, 2023 and will apply to upland cotton
    purchased not later than December 12, 2023 and entered into the U.S. not later than March 11, 2024.
    The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted
    average rate for the period May 2023 through July 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.

     




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