Weekly Cotton Market Review – USDA

Photo by Larry Stalcup

Average spot quotations were up 368 points from the previous week, according to the USDA, Agricultural Marketing Service’s 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 81.08 cents per pound for the week ending Thursday, February 11, 2021.

The weekly average was up from 77.40 cents last week and from 63.67 reported the corresponding period a year ago. Daily average quotations ranged from a low of 78.81 cents Friday, February 5, to a season high of 83.00 cents Tuesday, February 9.

Spot transactions reported in the Daily Spot Cotton Quotations for the week ended February 11 totaled 41,485 bales. This compares to 42,139 reported last week and 32,629 spot transactions reported the corresponding week a year ago.

Total spot transactions for the season were 1,221,819 bales compared to 1,271,622 bales the corresponding week a year ago. The ICE March settlement price ended the week at 86.41 cents, compared to 84.28 cents last week.

USDA ANNOUNCES SPECIAL IMPORT QUOTA #17 FOR UPLAND COTTON February 11, 2021

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 week’s domestic mill use. The quota will be established on February 18, 2021, allowing importation of 9,464,255 kilograms (43,469 bales of 480-lbs) of upland cotton.

More on Cotton


Quota number 17 will be established as of February 18, 2021 and will apply to upland cotton purchased not later than May 18, 2021 and entered into the U.S. not later than August 16, 2021. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period September 2020 through November 2020, the most recent three months for which data are available.

Future quotas, in addition to the quantity announced, will be established if price conditions warrant.

Southeastern Markets Regional Summary

Spot cotton trading was light. Supplies were light. Demand was good. Producer offerings were moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive. The COVID-19 Pandemic continues to negatively affect cotton demand and disrupt supply chains.

Mostly cloudy to overcast conditions prevailed across the lower Southeast during the period. Daytime high temperatures varied from the upper 30s to low 60s. Widespread shower activity brought light to moderate precipitation across the region. Weekly accumulated precipitation totals measured from 1 to 2 inches across south Alabama, the Florida Panhandle, and south Georgia. Lesser accumulations from trace amounts to around one half of an inch were received across northernly areas.

Fieldwork advanced as dry conditions allowed. In Georgia, larger gins continued to process backlogs of modules. Producers, ginners, and industry members attended the National Cotton Council’s annual meeting virtual event.

Mostly cloudy to overcast conditions were observed across the upper Southeast during the period. Daytime high temperatures were in the 50s to 60s. Scattered showers brought around one-half of an inch to one inch of moisture to areas of the eastern Carolinas and Virginia throughout the week. Field activities were limited due to wet conditions. Gins remained on gin days as the last remaining modules were retrieved from fields. Producers, ginners, and industry members attended the National Cotton Council’s annual meeting virtual event.

Textile Mill

Buyers for domestic mills purchased a moderate volume of color 41, leaf 3, and staple 36 for April through December delivery. Mill buyers also made inquiries for 2021-crop cotton, color 41, leaf 4, and staple 34 and longer for November 2021 through January 2022 delivery. No additional sales were reported. Reports indicated that mills continued to incrementally increase operating schedules as warranted by increased finished product demand. Yarn demand was good. Mills continued to produce personal protective equipment for frontline workers and military supplies.

Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted or low-grade styles of cotton.

Trading

  • A moderate volume of color 41 and 51, leaf 3-5, staple 35-37, mike 35-49, strength 26-30, uniformity 80-82, and 100 percent seed coat fragments sold for around 81.00 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).

South Central Markets Regional Summary

North Delta

Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. The COVID-19 Pandemic continues to negatively impact the overall global economy and daily infection rates were steadily increasing in many areas.

AgFax Weed Solutions


Overcast conditions and seasonably cool temperatures prevailed during most of the week. A winter ice storm moved through the region late week and overnight temperatures dropped into the teens and 20s. Highs were in the 30s to 50s. Accumulated precipitation measured less than 1 inch in most areas. According to the U.S. Drought Monitor, rainfall remained below average despite recent showers, continuing the expansion of abnormally dry to moderate drought in northeastern Arkansas and western Tennessee.

No field activities were reported. Ginning was practically completed for the season. Producers were closely watching commodity prices as they continued planning for the upcoming crop season. Producers and other interested parties participated in virtual industry meetings and educational seminars at both the national and regional levels.

South Delta

Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. The COVID-19 Pandemic continues to negatively impact economic activity around the world and daily infection rates were steadily increasing in many areas.

Overcast conditions prevailed for much of the reporting period. A winter cold front moved through the region during the week and overnight temperatures dropped into the 30s. Highs were in the 30s to 50s. Scattered showers brought less than 1 inch of rain to most areas. Areas in northern Mississippi experienced freezing rain, which forced some businesses to close due to icy road conditions.

According to the U.S. Drought Monitor, areas of moderate drought expanded throughout central Louisiana and northwestern Mississippi despite some precipitation. Producers were carefully monitoring commodity prices as they continued planning crop selections for planting season. Producers and other interested parties participated in virtual industry meetings and educational seminars.

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 good. Average local spot prices were higher. Producer interest in forward contracting was heavy. Trading of CCC-loan equities was active. Foreign inquiries were moderate. Interest was best from China, and Pakistan. The COVID-19 Pandemic continued to influence market uncertainty and impact global cotton demand. Medical communities continued treating positive cases. Vaccination clinics were held, and local cases were declining.

In the Rio Grande Valley, the final planting date for cotton is 7 weeks away, so producers were planting grain crops and pre-watering cotton fields. Fieldwork was active ahead of an approaching cold front that is forecasted to bring good rain chances.

Pre-plant herbicide and fertilizer were applied in Upper Coast and Coastal Bend. Grain sorghum seed shortages were reported by local sources and could shift some acres to cotton. Producers in the Blackland Prairies carefully considered market variabilities to determine which crops to sow. New cotton seed varieties were announced. Herbicide was applied.

Extreme winter conditions prevailed in Kansas with daytime temperature highs in the low teens to low 50s and overnight lows in the negative digits to mid-30s. Windchill factors were below zero. Fieldwork and ginning were at a standstill. In Oklahoma, several gins continued pressing operations and submitted samples for grading service. Harvesting was completed.

West Texas

Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was active. Foreign inquiries were moderate. Interest was best from China, and Pakistan. The COVID-19 Pandemic continued to impact commodity markets and global cotton demand. Infection rates declined, but continued to pressure local medical institutions and resources. Vaccination distributions were underway for first and second doses.

Cold, windy conditions prevailed with daytime highs in the upper 20s to mid-70s and overnight temperatures in the single digits to upper 30s. Bouts of sunshine were intermittently present early in the period and an Arctic airmass moved into the region late in the period. Fieldwork was interrupted since most days began with freezing drizzle and fog that caused icy roadways. Snow was received at some locations. Harvesting was completed in the Rolling Plains. Ginning continued mostly in the Panhandle and near the Red River, but a few gins finished for the season.

Trading

East Texas

  • In Texas, a mixed lot containing a light volume of color 33 and better, leaf 3-5, staple 34 and longer, mike 37-48, strength 27-31, and uniformity 76-82 sold for around 70.75 cents per pound, FOB warehouse (compression charges not paid).
  • In Kansas, a moderate volume of color 31 and 41, leaf 3 and 4, staple 36 and longer, mike averaging 35.1, strength 29-32, and uniformity 80-81 sold for around 77.00 cents, FOB car/truck (compression charges not paid).
  • A light volume of color 43 and 44, leaf 4 and 5, staple 36 and longer, mike 27-29, strength 26-32, and uniformity 78-80 sold for around 64.50 cents, same terms as above.
  • In Oklahoma, lots containing a heavy volume of color 31, leaf 2-4, staple 33 and longer, mike 35-38, strength 26-35, uniformity 77-81, and 50 percent extraneous matter sold for 74.50 to 75.75 cents, same terms as above.
  • A heavy volume of CCC-loan equities traded for 16.50 to 25.00 cents.
  • Producers booked a heavy volume of 2021-crop cotton at 72.00 to 80.00 cents.

West Texas

  • A moderate volume of color 21 and 31, leaf 2 and 3, staple 38 and longer, mike averaging 37.1, strength 30-35, and uniformity 79-82 sold for around 85.25 cents per pound, FOB car/truck (compression charges not paid).
  • Lots containing a heavy volume of color 11 and 21, leaf 1 and 2, staple 33-35, mike 35-49, strength 28-33, and uniformity 77-82 sold for 82.00 to 83.50 cents, same terms as above.
  • A moderate volume containing color 31 and better, leaf 2 and 3, staple 35 and longer, mike 35-50, strength 28-33, and uniformity 78-82 sold for around 78.25 cents, same terms as above.
  • A light volume of color 31 and better, leaf 4 and better, staple 34 and 35, mike averaging 33.5, strength 28-35, uniformity 78-82, and 25 percent extraneous matter sold for around 72.00 cents, same terms as above.
  • A heavy volume of CCC-loan equities traded for 10.00 to 25.00 cents.

Western Markets Regional Summary

Desert Southwest (DSW)

Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Producers delivered previously contracted cotton to merchant and cooperative marketing pools. New-crop contracting was active as ICE December futures broke over 80.00 cents. No domestic mill activity was reported. Foreign mill inquiries were good. The COVID-19 Pandemic continues to pressure worldwide economies and labor.

Sunny and dry conditions continued in the DSW. Above-average daytime high temperatures were in the low to mid-70s in central Arizona, New Mexico, and El Paso, TX. No moisture was received in the period. Fieldwork was active. DSW producers considered spring planting options. The industry attended the National Cotton Council virtual meeting. Ginning continued.

San Joaquin Valley (SJV)

Spot cotton trading was inactive. Supplies and demand were moderate. Average local spot prices were higher. Producers delivered previously contracted cotton to merchant and cooperative marketing pools. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 Pandemic continues to pressure worldwide economies and labor.

Cloudy conditions moved into the region late in the period. Rain was expected for the Valley and snow in elevations over 7,000 feet in the Sierras as a storm pushed in from the Pacific. Temperatures were in the low 60s. Fieldwork was active. The industry attended the National Cotton Council virtual meeting.

American Pima (AP)

Spot cotton trading was active. Supplies and producer offerings of 2020-crop cotton were heavy. Demand was good, but slowed as AP offering prices were adjusted higher. Producers delivered previously contracted cotton to merchant and cooperative marketing pools. Average local spot prices were higher. No forward contracting was reported. Foreign mill inquiries were good. Shippers offering prices were higher for 2020-crop cotton. No forward sales of 2021-crop were reported. The COVID-19 Pandemic continues to pressure worldwide economies and labor.

Above-average temperatures and dry conditions continued for the Far West. No moisture was recorded in the period. Clouds moved into California with the promise of rain. The nearby forecast showed rain for the Desert Southwest. Fieldwork was active. The industry attended the National Cotton Council virtual meeting. Ginning continued.

Trading

Desert Southwest

  • A moderate volume of color 11 and 21, leaf 2 and better, staple 36 and longer sold for 82.00 to 83.50 cents per pound, uncompressed, FOB warehouse.
  • A moderate volume mixed lot mostly color 21 and better, leaf 2 and better, staple 35 and longer sold for around 475 points off ICE March futures, same terms as above.
  • A heavy volume of 2021-crop cotton for contract base quality color 31 and better, leaf 3 and better, and staple 36 and longer was contracted for around 80.50 to 81.50 cents.

San Joaquin Valley

  • No trading activity was reported.

American Pima

  • A moderate volume of mostly color 1, leaf 1, and staple 48 and longer sold for around 135.00 to 137.00 cents per pound, uncompressed, FOB warehouse.



The Latest


Send press releases to Ernst@Agfax.com.

View All Events


Send press releases to Ernst@Agfax.com.

View All Events