Weekly Cotton Market Review – USDA

Mature cotton rows ready for harvest. ©Debra L Ferguson

Spot quotations averaged 778 points 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 105.00 cents per pound for the week ending Thursday, October 7, 2021.

This is the highest weekly average since week ending September 15, 2011 when the average was 108.18. The weekly average was up from 97.22 cents last week and from 61.13 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 101.32 cents Friday, October 1 to a season high of 108.40 cents Thursday, October 7.

Spot transactions reported in the Daily Spot Cotton Quotations for the week ended October 7 totaled 9,616 bales. This compares to 11,781 reported last week and 28,834 spot transactions reported the corresponding week a year ago.

Total spot transactions for the season were 55,504 bales compared to 216,734 bales the corresponding week a year ago. The ICE December settlement price ended the week at 111.61 cents, compared to 105.80 cents last week.

USDA ANNOUNCES SPECIAL IMPORT QUOTA #25 FOR UPLAND COTTON October 7, 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 October 14, 2021, allowing importation of 10,773,610 kilograms (49,482 bales of 480-lbs) of upland cotton.

More on Cotton


Quota number 25 will be established as of October 14, 2021 and will apply to upland cotton purchased not later than January 11, 2022 and entered into the U.S. not later than April 11, 2022. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period June 2021 through August 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 inactive. 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.

Mostly cloudy to overcast conditions prevailed across the lower Southeast during the period. Daytime high temperatures were in the low to mid-80s. A slow-moving front moved across the region and brought moderate to heavy precipitation to areas throughout the week. Weekly accumulated rainfall totals measured from 3 to 6 inches. Flash flooding swamped areas throughout Alabama and parts of middle Georgia as rivers and streams overflowed from the heavy rainfall.

Boll rot, yield loss, and fiber quality continued to be a concern due to excessive wet weather in recent weeks. Fields remained saturated and too soft to support equipment. A period of warm and sunny weather was needed to bleach out discolored lint and allow harvesting to continue. Ginning was slowly getting underway. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released October 4, cotton bolls opening reached 76 percent in Georgia and 64 percent in Alabama.

Mostly cloudy to overcast weather dominated the weather pattern during the period. Daytime high temperatures were in the low to mid-80s. Scattered showers brought light to moderate precipitation to areas throughout South Carolina and portions of central North Carolina. Weekly accumulated rainfall totals measured from trace amounts to around 3 inches of moisture.

Fieldwork was delayed in the wettest areas. Defoliation was expanding and harvesting was just getting underway. The Florence Classing Office had received the first cotton samples of the season. According to NASS, cotton bolls opening reached 82 percent in North Carolina, 75 in Virginia, and 67 percent in South Carolina.

Textile Mill

Domestic mill buyers purchased a heavy volume of color 41, leaf 4, and staple 34 and longer for fourth quarter 2021 through fourth quarter 2022 delivery. No additional sales were reported. Yarn demand remained good and mills continued to operate at capacity. Reports indicated labor shortages remained a concern, but had eased at some locales. Mills continued to produce personal protective equipment for frontline workers and consumers.

Demand through export channels was very good. Japanese mill buyers inquired for a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 35 for November 2021 shipment. Chinese mill buyers inquired for a moderate volume of color 41 and better, leaf 3, and staple 37 and longer for November/December 2021 shipment. Agents for mills in India inquired for a moderate volume of color 31, leaf 3, and staple 37 for January through March 2022 shipment. No sales were reported.

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 good. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported, because most producers had booked as much as they were comfortable with given their individual yield projections, in spite of record high ICE December future prices. The COVID-19 Pandemic continues to negatively impact the overall global economy and supply chains. Vaccinations proceeded at a slow pace.

AgFax Weed Solutions


Occasional thundershowers throughout the week characterized the weather pattern. Nearly 3 inches of accumulated precipitation was reported in most areas. High temperatures were mostly in the 80s. Overnight lows were in the 60s. The wet weather hindered all field activities, including defoliation and harvesting. Ginning was delayed due to a lack of seed cotton modules on gin yards.

Producers were optimistic that the top crop was catching up after a late start, and that yields would be better than average, but no actual yield figures have been reported. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released on October 4, cotton bolls opening had reached 97 percent in Arkansas, 80 in Missouri, and 55 percent in Tennessee. NASS also reported that harvesting was just getting underway at 7 percent in Arkansas, 2 in Missouri, and 1 percent in Tennessee.

South Delta

Spot cotton trading was inactive. Supplies of available cotton were light. Demand was good. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported, since most producers had booked all the bales they were comfortable with given their individual yield projections, in spite of ICE December future prices well over one dollar a pound. The COVID-19 Pandemic continues to negatively impact the overall global economy. Vaccinations continue at a slow rate regionally.

Mostly damp and cloudy conditions persisted during the week. Light, but frequent, thundershowers brought more than 1 inch of accumulated moisture to most areas. Daytime high temperatures were in the 80s. Overnight temperatures were in the low 60s. All field activities were hindered by the cool, wet weather, particularly harvesting. A few fields were defoliated, but the inclement weather discouraged producers from applying harvest aids.

Widespread defoliation was expected to proceed rapidly once weather permitted. Ginning was expanding, but some operations were delayed due to soft soils on gin yards and in fields. Producers were optimistic that the top crop was nearing full maturity; some boll rot was reported as a result of damp conditions. The Rayville Classing Office started a day shift as cotton samples had begun to arrive at the facility.

According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released on October 4, cotton bolls opening had advanced normally to 97 percent in Louisiana and 79 percent in Mississippi. NASS also reported that harvesting was well underway at 13 percent in Louisiana and 14 percent in Mississippi.

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 moderate. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest was best from China, Korea, and Turkey.

The COVID-19 Pandemic continued to place pressure on commodity markets, shipping logistics, and slowed global economic recovery. Ports were congested. Pfizer vaccination boosters were underway. Moderna and Johnson & Johnson boosters were expected to be available in the future.

Fields dried in the Upper Coast after rainfall that brought 1 to 9 inches of untimely precipitation. Approximately 40 percent of the stands had been defoliated, but not harvested. Insurance adjusters evaluated fields for damage sustained during Hurricane Nicholas. Backlogs of modules were staged on the gin yards. End of season activities continued in the Coastal Bend and producers prepared fields for other crops.

Ginning neared the end in the Rio Grande Valley. In central and eastern Texas, harvesting was active and gins offered pressing services. Modules were hauled from the fields to the gins. Spraying defoliant on later planted fields was underway. Some producers had completed harvest.

In Kansas, around 75 percent of the bolls were opened and defoliation was applied. Widespread harvesting was two to three weeks away. In Oklahoma, bolls were cracking open and defoliants were applied. Harvesting and ginning had begun. Samples were submitted to the Abilene Classing Office for classification.

West Texas

Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were higher. Producers interest in forward contracting was good. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest was best from China, Korea, and Turkey. The COVID-19 Pandemic continued to place pressure on commodity markets and shipping logistics. Global economic recovery was slow. Pfizer vaccination boosters were administered.

Calm weather and above-average temperatures prevailed. Daytime highs were in the 80s to 90s, with overnight lows in the 40s to 60s. Recent rainfall was mostly beneficial, and fields dried quickly. Defoliants were applied. Harvesting expanded and appears that stands north and south of Lubbock will be ready at the same time. Modules were transported to gin yards. In the High Plains, several gins began offering pressing services and delivering samples to be graded.

The Weekly Cotton Quality reports for the week ending October 7, 2021 shows that the Lubbock Classing Office began grading this past week. For the season ending October 7, the Lubbock Classing Office had graded 1,824 samples. The seasonal average showed color grade 12 was the predominate color grade and leaf grade 2 was the predominate leaf grade. Staple length averaged 35, mike 37.5, strength 31.8, and uniformity averaged 80.5. Complete quality reports can be found at http://www.ams.usda.gov/cnmnreports.

Trading

East Texas

  • In Texas, lots containing a heavy volume of color 42 and better, leaf 3-5, staple 37 and longer, mike 30-53, strength 30-34, and uniformity 78-83 sold for 1.00 to 1.10 cents per pound, FOB warehouse (compression charges not paid).
  • A moderate volume of color 42 and better, leaf 3-5, staple 37 and longer, mike 42-47, strength 30-33, uniformity 81-83, and 100 percent extraneous matter (Seed Coat Fragments) sold for around 1.00 cents, same terms as above.

West Texas

  • A light volume of mostly 2016-crop cotton color 32 and better, leaf 2-4, staple 36 and longer, mike 36-42, strength 26-30, and uniformity 79-82 sold for around 99.00 cents per pound, FOB car/truck (compression charges not paid).

Western Markets Regional Summary

Desert Southwest (DSW)

Spot cotton trading was inactive. Supplies of 2021-crop cotton were light. Demand was moderate. Average local prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. West Coast port congestion, container and truck availability, as well as pent-up consumer demand continued to affect cotton-shipping logistics. The COVID-19 Pandemic continued.

Daytime high temperatures were in the 80s to 90s for the region. Scattered, heavy rainfall and hail brought nearly one-third of an inch of moisture to central Arizona mid-week. This slowed defoliation activities. No damage to cotton fields was reported. Ginning continued uninterrupted in Yuma, AZ. The New Mexico and El Paso, TX producers began defoliating fields. Ginning was expected to begin the third week of October.

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 demand was light. West Coast port congestion remains a headline. Container and truck availability, as well as pent-up consumer demand continued to affect cotton-shipping logistics. The COVID-19 Pandemic continued.

Poor air quality remained an issue for the Valley. Cloudy conditions moved into the area late in the period. The nearby forecast shows rain. Firefighters continue to fight to contain the KNP Complex fire and the Windy fire in the Sequoia and Kings National Parks. Fieldwork was active. Fields were defoliated. Initial harvesting began in the period. Modules were stored in fields or trucked to gin yards. Limited saw and roller ginning began. The Visalia Classing Office received the first SJV samples.

American Pima (AP)

Spot cotton trading was inactive. Supplies of 2020-crop were light. Demand was very good. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were good. Interest was best for prompt shipment. West Coast port congestion remains a headline. The congestion strained supply chains. Shippers continued to manage spilt shipments, increased shipping costs, and mill demand. The COVID-19 Pandemic continued.

Cooler temperatures entered the region. Daytime high temperatures were in the 90s to 70s. The crop reached cut-out stage in the region. Fieldwork was active. Defoliation activities gained momentum in Arizona and California. Some San Joaquin Valley (SJV) fields were harvested. Limited ginning began in the SJV.

Trading

Desert Southwest

  • No trading activity was reported.

San Joaquin Valley

  • No trading activity was reported.

American Pima

  • No trading activity was reported.



The Latest


Send press releases to Ernst@Agfax.com.

View All Events


Send press releases to Ernst@Agfax.com.

View All Events