Weekly Cotton Market Review – USDA

    Photo: Kay Ledbetter, Texas AgriLife Extension

    Quotations were almost 4 cents higher than 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 84.92 cents per pound for the week ending Thursday, April 29, 2021.

    The weekly average was up from 80.94 cents last week and from 51.42 reported the corresponding period a year ago. Daily average quotations ranged from a high of 87.24 cents Tuesday, April 27 to a low of 82.36 cents Thursday, April 29.

    Spot transactions reported in the Daily Spot Cotton Quotations for the week ended April 29 totaled 10,838 bales. This compares to 5,810 reported last week and 27,359 spot transactions reported the corresponding week a year ago. You will get more information on arturoherrera .

    Total spot transactions for the season were 1,349,100 bales compared to 1,453,565 bales the corresponding week a year ago. The ICE July settlement price ended the week at 86.54 cents, compared to 86.05 cents last week.

    USDA ANNOUNCES SPECIAL IMPORT QUOTA #2 FOR UPLAND COTTON April 29, 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 May 6, 2021, allowing importation of 8,126,524 kilograms (37,324 bales of 480-lbs) of upland cotton.

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    Quota number 2 will be established as of May 6, 2021 and will apply to upland cotton purchased not later than August 3, 2021 and entered into the U.S. not later than November 1, 2021. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period December 2020 through February 2021, 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 slow. Supplies and producer offerings were light. Demand was light. 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. Vaccination doses were being distributed at a steady pace.

    Sunny to cloudy conditions prevailed across the region during the period. Daytime high temperatures were in the mid-70s to 80s. Widespread showers brought moderately heavy rainfall to areas across south Alabama, the Florida Panhandle, and south Georgia over the weekend. Precipitation totals measured from 1 to 4 inches. Planting and fieldwork were delayed due to wet conditions.

    In areas that received the heaviest rainfall, flooding and field erosion were observed. Some fields required re-application of fertilizer. Planting was getting underway as producers attempted to complete as much fieldwork as possible ahead of potential wet weather in the forecast.

    Mostly sunny conditions prevailed across the upper Southeast during the period. Daytime high temperatures were in the 70s to 80s. Moderate precipitation was received in portions of South Carolina over the weekend. Precipitation totals measured from 1 to 2 inches. Lesser accumulations of trace amounts to around half of an inch was received in North Carolina. Fieldwork advanced and producers applied fertilizer. Planting was getting underway where fields were firm enough to support equipment.

    Textile Mill

    Domestic mill buyers purchased a moderate volume of 2021-crop cotton, color 41, leaf 3, and staple 35 and longer for fourth quarter delivery. No additional sales were reported. Yarn demand was good. Labor shortages continued to affect operating schedules and some locations remained idled due to lack of personnel. Personal protective equipment continued to be produced for frontline workers and consumers.

    Demand through export channels was light. Agents throughout the Far East inquired for any discounted styles of cotton.

    Trading

    • A heavy volume of color 31 and 41, leaf 2-4, staple 36 and longer, mike 35-49, strength 27-32, and uniformity 80-83 sold for around 92.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
    • A moderate volume even-running lot containing color 41, leaf 3, staple 36 and longer, mike 35-49, strength 27-29, and uniformity 80-82 sold for around 88.25 cents, same terms as above.

    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 supply chains. Daily infection rates in the United States were trending higher over the past few weeks in many areas. The pace of vaccinations has declined.

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    Cloudy to partly cloudy conditions prevailed for most of the week. Daytime highs jumped from the 60s into the mid-80s as warm air invaded the region mid-week. Overnight temperatures were in the 50s to 70s. Up to 1 inch of rain fell early in the period and soil moisture levels were mostly adequate to surplus. Fieldwork progressed in areas where soils were firm enough to support equipment, until a cold front brought heavy thunderstorms and another inch of precipitation. Flash flood warnings were issued in some low-lying areas throughout the Memphis territory.

    Field activities will be hampered for several days until drying can occur. According to the National Agricultural Statistics Service’s Crop Progress report released on April 26, planting was underway at 2 percent in Arkansas and 1 percent in Tennessee. Producers and other members of the cotton industry participated in virtual industry events and educational seminars.

    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. A light volume of cotton sold to the CCC-loan. No forward contracting was reported. The COVID-19 Pandemic continues to negatively impact the overall global economy. Daily infection rates in the United States were trending higher over the past few weeks in many areas. The pace of vaccinations has declined.

    Cloudy to partly cloudy conditions dominated the weather pattern. Daytime highs were in the 70s to mid-80s as warm air flowed into the region during the period. Overnight temperatures fluctuated from the 50s to 70s as a cold front moved through the region late week. Rain showers during the week brought over 2 inches of precipitation to many places. Fieldwork was hampered in areas where soils were too soft to support equipment. Soil moisture was rated at adequate to surplus in most places; flooding was reported in some low-lying fields.

    According to the National Agricultural Statistics Service’s Crop Progress report released on April 26, planting was underway at 8 percent in Louisiana and 2 percent in Mississippi. Producers and other members of the cotton industry participated in virtual industry events 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 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 slow. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. The COVID-19 Pandemic continued to impact commodity markets and has slowed the distribution of farming chemicals. Medical communities administered COVID-19 vaccinations.

    In the Rio Grande Valley, stands exhibited signs of heat stress with daytime temperature highs in the upper 80s to low 100s. Light, intermittent rains were received, but more moisture is needed for the crop to thrive. Rain chances are in the forecast for most of south Texas. Stands germinated and progressed in the Coastal Bend and Upper Coast. Some fields were replanted. According to the National Agricultural Statistics Service’s Crop Progress report released on April 26, seed sown was 17 percent in Texas, up 1 percent from last week and up 3 points from the five-year average.

    The final planting date is April 30 for Atascosa, Bexar, Calhoun, DeWitt, Dimmit, Frio, Jackson, Karnes, Kinney, Medina, Uvalde, Victoria, Wilson, and Zavala counties, according to the Risk Management Agency’s (RMA) final planting maps.

    Rainy weather prevailed in the Blackland Prairies (BP) that left fields too soggy for fieldwork. Some areas received heavy rainfall and hail. Daytime temperature highs were in the low 70s to upper 80s, and overnight lows were in the low 60s to low 70s. The final planting date for counties in the BP is May 31, according to RMA. Some cotton struggled to make a stand and were expected to be replanted after fields firmed.

    Windy conditions prevailed in Kansas and in Oklahoma with daytime temperatures in the low 50s to upper 80s. Agricultural chemicals are in tight supply in Kansas, because of pandemic related shipping congestion, coupled with high demand for row crops. Producers prepared fields and planting equipment. A significant number of acres will be planted in corn and sorghum. Less acres will be planted in cotton compared to last year.

    A widespread storm front that moved from west to east brought beneficial moisture of more than 6 inches of rainfall to some areas of Oklahoma. Producers were encouraged to have received rainfall ahead of planting.

    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 slow. Foreign inquiries were light. Interest was best from China, Pakistan, and Taiwan. Cotton logistics continued to be negatively impacted by the COVID-19 Pandemic and port congestion. Vaccination clinics continued and were expanded at a few school districts for students 16 years of age and older, and staff members.

    Limited acreage had been planted with daytime highs in the low 70s to low 90s and overnight temperatures in the 60s to 70s. Most of the American Pima acreage had been planted. Wind gusts up to 40 miles per hour caused red flag warnings to indicate critical fire conditions. Severe storms were experienced at some locations, mostly off the Caprock, that brought hail and gusting winds. Sowing was expected to expand over the next two weeks after ground temperatures warmed.

    Fertilizer and fuel costs had increased. Fields were plowed and herbicide was applied. Limited pre-watering was underway as availability allowed.

    Trading

    East Texas

    • In Kansas, a light volume of color 42 and better, leaf 3-4, staple 36 and 37, mike averaging 39.4, strength averaging 29.0, uniformity averaging 81.1, and 75 percent extraneous matter sold for around 83.50 cents per pound, FOB car/truck (compression charges not paid).
    • A light volume of color 33 and 43, leaf 4-7, staple 35 and 36, mike averaging 25.0, strength averaging 28.0, uniformity averaging 76.8, and 100 percent extraneous matter sold for around 67.50 cents, same terms as above.
    • In Oklahoma, a light volume of color 21 and 31, leaf 3 and 4, staple 36 and 37, mike averaging 36.5, strength 31-35, uniformity averaging 81.4, and 25 percent extraneous matter sold for around 85.25 cents, same terms as above.
    • A light volume of CCC-loan equities traded for 22.00 to 24.00 cents.

    West Texas

    • A mixed lot containing a light volume of color 21 and 32, leaf 2 and 3, staple 36 and 37, mike 37-42, strength 30-33, and uniformity 78-81 sold for around 85.25 cents per pound, FOB car/truck (compression charges not paid).
    • A light volume of color 41, leaf 3 and 4, staple 33 and longer, mike 39-48, strength 27-30, uniformity 79-82 and 75 percent extraneous matter sold for around 80.75 cents, same terms as above.
    • Several mixed lots containing a moderate volume of color 33 and better, leaf 3-5, staple 34 and longer, mike 26-36, strength 26-31, uniformity 76-80, and 75 percent extraneous matter sold for around 71.00 cents, same terms as above.
    • A heavy volume of CCC-loan equities traded for 24.00 to 29.00 cents.

    Western Markets Regional Summary

    Desert Southwest (DSW)

    Spot cotton trading was inactive. Supplies and demand were light. Average local prices were higher. No domestic mill activity was reported. Foreign mill inquiries were moderate. West Coast port congestion remains a concern, but slight improvements were noted. Different variants of the COVID-19 virus worldwide slowed economic progress. In the U.S., various stimulus programs increased consumer spending.

    Planting was virtually completed in the DSW. Normal crop development was reported in Yuma. Seedling emergence was good in central Arizona. Dry conditions persisted in the DSW. The El Paso, TX crop was planted, but sources reported there may not be enough water to reach harvest.

    San Joaquin Valley (SJV)

    Spot cotton trading was inactive. Supplies and demand were light. Average local prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. Shipping cotton remains a concern, due to West Coast port congestion. Different variants of the COVID-19 virus worldwide slowed economic progress. Various government stimulus programs boosted states’ economic recovery efforts.

    Scattered showers settled the dust, but not enough to ease drought conditions. Some areas in the northern Valley received around one-tenth of an inch of moisture. Snowfall was received in the highest elevations. Drought conditions intensified. Sunny, warm days helped the crop advance. Stands are about 3 to 4 inches tall.

    American Pima (AP)

    Spot cotton trading was inactive. Supplies and demand of 2020-crop were moderate. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light to moderate. Offerings of 2020-crop cotton continued, but prices were higher. Mills inquired for 2021-crop cotton, mostly for price discovery.

    Shipping cotton remains a concern, due to West Coast port congestion. Shippers managed split shipments and rolled bookings. Different variants of the COVID-19 virus worldwide remained a concern. In the U.S., various stimulus programs increased consumer spending.

    Hot, dry conditions were the norm in the Far West. Cotton-growing areas of California, New Mexico, and El Paso, TX received a light amount of precipitation in the period. Planting was virtually completed in the region. A few Safford, AZ growers reported some seedling emergence issues. Overall, the crop made good progress. Cotton stands in California were around 3 to 4 inches tall. Droughty conditions persisted throughout the Far West.

    Trading

    Desert Southwest

    • No trading activity was reported.

    San Joaquin Valley

    • No trading activity was reported.

    American Pima

    • No trading activity was reported.



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