Weekly Cotton Market Review – USDA

    cotton
    ©Debra L Ferguson Stock Images

    Spot quotations averaged 565 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 118.50 cents per pound for the week ending Thursday, January 20, 2022.

    The weekly average was up from 112.85 cents last week and from 77.41 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 116.38 cents Friday, January 14 to a season high of 120.49 cents Wednesday, January 19.

    Spot transactions reported in the Daily Spot Cotton Quotations for the week ended January 20 totaled 133,793 bales. This compares to 93,669 reported last week and 44,177 spot transactions reported the corresponding week a year ago.

    Total spot transactions for the season were 1,082,633 bales compared to 1,104,667 bales the corresponding week a year ago. The ICE March settlement price ended the week at 122.87 cents, compared to 116.84 cents last week.

    USDA ANNOUNCES SPECIAL IMPORT QUOTA #14 FOR UPLAND COTTON January 20, 2022

    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 January 27, 2022, allowing importation of 9,559,147 kilograms (43,904 bales of 480-lbs) of upland cotton.

    More on Cotton


    Quota number 14 will be established as of January 27, 2022 and will apply to upland cotton purchased not later than April 26, 2022 and entered into the U.S. not later than July 25, 2022. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period September 2021 through November 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 moderate. Supplies and producer offerings were moderate. 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 disrupt labor availability and logistics. Vaccination doses were being distributed.

    Mostly cloudy and overcast conditions dominated the weather pattern across the lower Southeast. Daytime high temperatures were mostly in the mid-50s to mid-60s. A winter storm swept across north Alabama and Georgia over the weekend bringing a wintry mix of rain, sleet, and snow. Widespread rainfall was received across lower portions of the region. Weekly accumulated precipitation totals measured from 1 to 3 inches of moisture.

    The moisture benefitted portions of the Gulf Coast and Coastal Georgia that were experiencing abnormally dry to moderate drought conditions. Harvesting and fieldwork remained at a standstill due to the wet weather. As some gins worked through backlogs of modules, other gins will be going to gin days as they wait for the last fields to be harvested. Producers, ginners, and industry members made plans to attend the Georgia Cotton Commission’s annual meeting on January 26 in Tifton, GA.

    Sunny to cloudy conditions prevailed across the upper Southeast during the period. Daytime high temperatures varied from the low 40s to low 60s. A winter storm brought freezing rain and sleet to areas throughout the central and eastern Carolinas and Virginia. As temperatures warmed later in the week occasional rain showers brought additional moisture to the region. Weekly accumulated precipitation totals measured 1 to 3 inches.

    The influx of moisture improved abnormally dry to moderate drought conditions observed in cotton growing areas of the region. Field activities were at a standstill as fields remained too soggy to support equipment. Some gins remained on gin days as they waited for the last fields to be harvested.

    Textile Mill

    Domestic mill buyers inquired for a moderate volume color 41, leaf 4, and staple 34 and longer for June through December delivery. No sales were reported. Yarn demand remained good and mills continued to operate at capacity as allowed by labor availability. Mills continued to produce personal protective equipment for frontline workers and consumers.

    Demand through export channels was good. Japanese mill buyers purchased a light volume of color 22, leaf 2, and staple 32 for March shipment. Agents for mills in Vietnam inquired for a moderate volume of color 31, leaf 3, and staple 37 for February through July shipment. Agents for mills in India and Korea inquired for a moderate volume of color 41, leaf 3 and 4, and staple 36 and longer for second quarter through fourth quarter shipment. No additional sales were reported.

    Trading

    • Heavy volume even-running lots containing color 21 and 31, leaf 2 and 3, staple 36 and longer, mike 37-49, strength 28-32, and uniformity 79-81 sold for around 130.00 cents per pound, FOB car/truck (Rule 5, compression charges paid).
    • Light volume even-running lots containing color 31, leaf 2-4, staple 37 and longer, mike 43-47, strength 29-31, and uniformity 80-83 sold for 127.00 to 129.00 cents, same terms as above.
    • Heavy volume even-running lots containing color 31 and better, leaf 3 and better, staple 36 and longer, mike 35-49, strength 28-30, and uniformity 80-82 sold for around 125.00 cents, same terms as above.
    • Similar lighter volume even-running lots containing color 41 and better and staple mostly 36 and 37 sold for around 122.00 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 good. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers booked a light volume of CCC-loan equities for 46.00 cents per pound. Cotton was being delivered to fulfill contracts. The Omicron variant of the COVID-19 virus continues to cause major disruptions to our society in general, as well as international marketing channels, supply chains, and the worldwide labor force.

    AgFax Weed Solutions


    Typical winter weather conditions prevailed during the report period. A series of storm fronts brought up to 2 inches of precipitation to the region during the period. Daytime high temperatures ranged from the upper 20s to the low 50s. Overnight lows dipped briefly into the teens as a severe cold front moved through the area; otherwise, low temperatures were in the 20s and 30s. The Memphis Classing Office had reached the 96 percent completion mark as of Wednesday, January 19. Virtual and in-person industry meetings were being planned and attended for 2022.

    According to the U.S. Drought Monitor, drought conditions persisted in the southern part of Arkansas. Producers monitored commodity prices and the cost of inputs as they continued to plan for the spring planting season.

    South Delta

    Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very good. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers booked a light volume of CCC-loan equities for 46.00 cents per pound. Cotton was being delivered to fulfill contracts. The Omicron variant of the COVID-19 virus continues to cause major disruptions to our society in general, as well as international marketing channels, supply chains, and the worldwide labor force.

    Winter weather conditions prevailed. High temperatures ranged from the 30s to 60s. Overnight lows were in the 20s to 40s. A winter storm front brought over 1 inch of rain to most of the region. Producers monitored the price of inputs needed for spring planting. Industry experts indicated that the high cost of fertilizer could shift some corn acreage into cotton. Virtual and in-person industry meetings were planned and attended.

    According to the U.S. Drought Monitor, severely deficient soil moisture persisted throughout the state of Louisiana, with the cotton-producing northeastern region experiencing extreme drought conditions. Abnormally dry to moderate drought conditions were prevalent throughout Mississippi.

    Trading

    North Delta

    • Producers booked a light volume of CCC-loan equities for 46.00 cents per pounds.

    South Delta

    • Producers booked a light volume of CCC-loan equities for 46.00 cents per pounds.

    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 light. Trading of CCC-loan equities was active. Foreign mill inquiries were moderate. Interest was best from Indonesia, Pakistan, and Taiwan. The COVID-19 Pandemic continued to place pressure on shipping logistics and slowed global economic recovery.

    In south Texas, beneficial rainfall was received with daytime temperatures in the mid-40s to upper 70s and overnight temperatures in the 30s to 60s. Producers booked planting seed. Producers were encouraged in the Rio Grande Valley with soil moisture levels, and some corn was planted. Cotton planting will begin in about a month. Ginning was finalized in the Blackland Prairies, and some locations received a light amount of rainfall and snow flurries.

    In Kansas, light precipitation was received. Ginning made good progress with daytime temperature highs in the mid-20s to mid-60s and overnight lows in the teens to low 30s. Producers made plans to plant more cotton in 2022. In Oklahoma, ginning was active with modules transported to the gins. A few gins that had increased efficiency through machinery upgrades finished pressing bales for the season. Fertilizer and chemicals were booked for the 2022-season. Meetings were held.

    West Texas

    Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was good. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was moderate. Foreign mill inquiries were moderate. The COVID-19 Pandemic continued to place pressure on commodity markets and shipping logistics. Global economic recovery was slow.

    In Texas, ginning advanced with fluctuating daytime temperatures in the low 30s to low 80s, and overnight lows in the teens to 50s. A light amount of rain and snow was received in the Panhandle, but most locations remained droughty. Some gins finished and pressed the last bale. Industry members expected an increase of cotton planted acres in 2022 and hoped for more rainfall so the crop could be taken to harvest. Meetings were attended in person and virtually.

    Trading

    East Texas

    • In Kansas, mixed lots containing a heavy volume of color 31 and better, leaf 2 to 4, staple 34 to 36, mike 23-50, strength 28-34, and uniformity 78-82 sold for 110.00 to 113.50 cents per pound, FOB car/truck (compression charges not paid).
    • In Oklahoma, mixed lots containing a heavy volume of color 31 and better, leaf 4 and better, staple 35 to 37, mike 33-47, strength 26-34, and uniformity 78-82 sold for 118.00 to 119.00 cents, same terms as above.
    • Mixed lots containing a heavy volume of color 41 and better, leaf 4 and better, staple 35 to 37, mike 27-48, strength 26-34, uniformity 78-82, and 25 percent extraneous matter sold for 112.50 to 115.00 cents, same terms as above.
    • A heavy volume of CCC-loan equities traded for 55.50 to 57.50 cents.

    West Texas

    • Lots containing a heavy volume of color 11 and 21, leaf 3 and better, staple 35 and longer, mike 37-49, strength 27-33, and uniformity 77-82 sold for 116.00 to 120.00 cents per pound, FOB car/truck (compression charges not paid).
    • A heavy volume of lots containing color 31 and better, leaf 3 and better, staple 35 to 38, mike 34-51, strength 27-34, uniformity 77-82, and 25 percent extraneous matter sold for 112.00 to 114.25 cents, same terms as above.
    • Lots containing a heavy volume of color 11 and 21, leaf 3 and better, staple 33 to 35, mike 26-42, strength 26-32, and uniformity 76-81 sold for 108.00 to 110.25 cents, same terms as above.
    • A moderate volume of CCC-loan equities traded for 58.50 to 64.25 cents.

    Western Markets Regional Summary

    Desert Southwest (DSW)

    Spot cotton trading was slow. Supplies were moderate. Demand was light. Average local spot prices were higher. Producer offerings increased as the ICE March futures market trended higher late in the period. Producers continued to deliver bales to fulfill contracts. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 Pandemic with the Omicron variant continues to disrupt labor availability, shipping, and supply chains.

    Regional daytime temperatures were in the 50s to low 70s. Overnight low temperatures were in the 40s and 50s in central Arizona and in the 20s and 30s for New Mexico and El Paso, TX. No rainfall was recorded in the period. Ginning continued in Arizona.

    San Joaquin Valley (SJV)

    Spot cotton trading was inactive. Supplies and demand were light. Producers delivered previously contracted cotton to merchant and cooperative marketing pools. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 Pandemic with the Omicron variant continues to disrupt labor availability, shipping, and supply chains.

    Daytime high temperatures were mostly in the 60s. Overnight lows were in the high 30s to low 40s. No rainfall was recorded in the period. January is on the path of being the driest month on record. The statewide snow water equivalent was reported at 16.1 inches, which is 58 percent of the April 1 average and 115 percent of normal for this date, according to the California Department of Water Resources on January 19. Ginning continued.

    American Pima (AP)

    Spot cotton trading was slow. Supplies were light. Demand was very good. Average local spot prices were higher. Producers made inquiries for new-crop pricing. No new sales were reported. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. The COVID-19 Pandemic with the Omicron variant continues to disrupt labor availability, shipping, and supply chains. Shipping headaches continued as shippers encountered delays in transit times and at transship ports, receiving documents, and soothing impatient mill customers.

    Daytime high temperatures were in the 50s to 70s for the Far West. Overnight lows were in the 30s to 50s. No rainfall was recorded for the region. Ginning continued uninterrupted.

    Trading

    Desert Southwest

    • A moderate volume of Arizona cotton, color mostly 21, leaf 2, staple 39-41, mike averaging 45.0, strength averaging 32.0, and uniformity averaging 81.5 sold for around 250 points off ICE March futures, uncompressed, FOB warehouse.
    • A light volume lot of New Mexico cotton, color 11 and 21, leaf mostly 1, staple 34-37, mike averaging 40.4, strength averaging 29.0, and uniformity averaging 80.3 sold for 115.00 to 120.00 cents per pound, FOB car/trucks (compression charges not paid).
    • Similar mixed lots containing mike averaging 34.0 with extraneous matter sold for around 113.00 cents, same terms as above.

    San Joaquin Valley

    • No trading activity was reported.

    American Pima

    • A moderate volume of color 2 and better, leaf 2 and better, and staple 48 and longer was sold to foreign mills.



    The Latest


    Send press releases to Ernst@Agfax.com.

    View All Events


    Send press releases to Ernst@Agfax.com.

    View All Events