USDA Weekly Cotton

Mp_cn812    
June 14, 2019 
Weekly Cotton Market Review  
 


Spot quotations averaged two and one-half cents lower than the previous week, according to the USDA, Agricultural Marketing Services 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 61.05 cents per pound for the 
week ending Thursday, June 13, 2019. The weekly average was down from 63.55 last week and 90.27 cents reported the corresponding period a year ago. Daily average quotations ranged from a 
low of 60.52 cents Friday, June 7 to a high of 61.76 cents Thursday, June 13. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 13 totaled 5,766 bales. 
This compares to 18,676 reported last week and 8,162 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,209,780 bales compared to 
2,033,401 bales the corresponding week a year ago. The ICE July settlement prices ended the week at 66.83 cents, compared to 68.59 cents last week.



Southeastern Markets Regional Summary 


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

Mostly cloudy conditions prevailed over the lower Southeastern region during the period and widespread precipitation was received in areas across Alabama, the Florida Panhandle, and 
Georgia as a slow moving system moved across the region throughout the week.  Daytime high temperatures were cooler than the previous period and were in the low to high 80s.  Planting 
and fieldwork was interrupted as extensive thunderstorms delivered 2 to 4 inches of heavy rainfall to areas throughout the Florida Panhandle, Alabama, and Georgia.  Producers welcomed 
the timely rainfall, which helped replenish soil moisture, invigorate young plants, and aid germination in late plated fields.  Producers applied herbicide and nitrogen in fields where 
soils were firm enough to support equipment.  Standing water was observed in some low-lying areas.  According to the National Agricultural Statistic Services (NASS) Crop Progress report 
released June 10, cotton planted advanced at a slow pace to 95 percent completed in Alabama and 90 percent completed in Georgia.  Similar conditions were observed across the upper Southeastern 
region as widespread rainfall was received and cooler daytime temperatures were observed in the low-to-high 80s.  Scattered showers brought moderate-to-heavy moisture to areas throughout the 
Carolinas and Virginia during the week.  Producers welcomed the beneficial rainfall which relieved hot and dry conditions and fortified soil moisture.  Weekly accumulated precipitation totals 
measured from around three-quarters of an inch to two inches of moisture, with locally heavier amounts observed in some areas.  Planting and fieldwork was interrupted due to the wet weather.  
In South Carolina, heavy pressure from thrips was reported on seedling cotton with anywhere from one to six leaves.  The rainfall helped to knock down heavy thrip populations in some areas.  
Across the upper Southeastern region, producers applied herbicides to fields where soils were firm enough to support equipment.  According to NASS, in South Carolina cotton planted advanced at 
a slow pace to 98 percent, Virginia 96, and in North Carolina 91 percent planted.

Textile Mill 

Domestic mill buyers inquired for a moderate volume of 2019-crop cotton, color 41, leaf 4, and staple 34 for fourth quarter 2019 through third quarter delivery.  Mill buyers also inquired for a 
light volume of color 31 and 41, leaf 3 and 4, and staple 34 and longer for nearby fill-in needs.  No sales were reported.  No additional inquiries were reported; most mills have covered their 
raw cotton needs through the fourth quarter 2019. 

Demand through export channels had tapered and was moderate.  Agents throughout the Far East inquired for any recaps containing discounted styles of cotton.


Trading 
A moderate volume of mixed lots, color 51 and better, leaf 4 and better, staple mostly 32 and longer, mike 37-49, strength 24.0 - 30.0, and uniformity 78-81 traded at around 58.00 cents per pound, 
FOB car/truck Rule 5, compression charges paid).



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 lower.  Trading of CCC-loan equities was inactive. No forward contracting was 
reported.  

Cloudy to partly sunny skies characterized the weather pattern during the period.  A storm system brought up to 3 inches of rain to some areas early in the week. Scattered rain showers brought light 
precipitation to the rest of the region, which exhibited a few cases of dry fields in need of moisture. Daytime temperatures in the 70s and 80s were noticeably cooler than the previous week.  Overnight 
lows dipped briefly into the 50s before returning to the low 70s.  Land that was not planted to cotton was switched to soybeans in most cases, particularly in Missouri, where producers were only able to 
plant approximately 80 percent of their intended cotton acreage. Squaring gained momentum and extension specialists announced that producers should expect to see plant bug populations as these fields 
developed. Thrips were reported in newly-emerged cotton; producers were also advised to carefully consider their choice of pesticides in combating insect pests.  Applications of herbicides and fertilizer 
were also made, as necessary.  


South Delta 

Spot cotton trading was inactive.  Supplies of available cotton were moderate.  Demand was light.  Average local spot prices were lower.  Trading of CCC-loan equities was inactive. No forward contracting 
was reported.      

Partly sunny to overcast skies dominated the weather pattern during the period.  A storm system brought up to 6 inches of rain to some areas during the week. Scattered rain showers brought light rainfall 
to parts of the region; many fields that missed the storms were in need of moisture. Daytime temperatures were in the 80s.  Overnight lows were in the 60s and 70s.  Squaring gained momentum in early planted 
fields. Cotton specialists informed producers they could expect to see plant bug populations develop rapidly as these fields advanced.  High populations of red banded stink bugs were reported in some areas; 
producers were advised to carefully consider their choice of pesticides in combating insect pests.  Crop protection measures were made as necessary to control weeds and insect pests. Fertilizers were applied 
to some fields.


Trading 
  
North Delta 

No trading activity was reported.  


 
South Delta 

Alight volume of color 41 and better, leaf 4 and better, staple 36 and longer, mike 35-49, and uniformity 79-83 traded for around 150 points on ICE July futures contract, FOB, car/truck 
(Rule 5, compression charges paid). 


Southwestern Markets Regional Summary      


East Texas 

Spot cotton trading was slow.  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 inquiries were light.  
     
In the Rio Grande Valley, irrigation was underway and dryland stands were stressed from lack of rain, according to the Pest Cast newsletter, published on June 7.  Fields were in full-bloom 
and setting bolls.  Producers continued to monitor for plant pests including flea hoppers and tarnished plant bugs.  Stands advanced in the Upper Coast and neared first bloom. Producers 
managed weed flushes, and applied treatments for plant pest as needed.  In the Blackland Prairies, producers did their best to plant during drier conditions.  Most fields were planted, but 
some were inaccessible due to wet field conditions.
  
The early crop has progressed to pinhead squares, which are under attack by flea hoppers.  Local experts recommended applying treatments to control early season pests.  Some producers plowed 
fields ahead of planting, or applied burndown to help control the weeds. In Kansas, planting and replanting neared completion as the full insurance deadline passed on June 1.  Planted acres 
were still being reported and evaluated, but the undertone is a reduction in acres compared to earlier intentions due to wet and cool conditions.  Some spots were thin or did not germinate at 
all, and root rot was reported.  Some fields will be plowed under and replanted with sorghum or possibly soybeans.  Ginning and grading continued for the 2018-crop.  Stands have emerged in 
Oklahoma, and thrips and other early season pests were monitored. Dryland planting continued.  Planting insurance deadlines were June 10 for irrigated acres and June 20 for dryland.  

           
West Texas 

Spot cotton trading was slow.  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 inquiries were light.  Inquiries were best from Mexico and Taiwan.
     
Multiple rain events hindered fieldwork with daytime high temperatures in the low 70s to mid-90s, and overnight lows in the mid-50s to upper 60s.  Continued rainfall has placed cotton 
planting behind schedule and many producers have opted to move onto other crops.  Local reports indicated that some producers had replanted three times. Producers in eastern New Mexico 
and in the panhandle were not able to plant all of their intended acres to cotton before the crop insurance deadlines. Weeds were concerning and reports of resistant Palmer Amaranth 
(pigweed) is present. 

Trading 
 
East Texas 
In Oklahoma, a light volume of color 31, leaf 3 and 4, staple 33 and 34, mike 41-43, strength averaging 29.9, and uniformity averaging 79.8 sold for around 53.00 cents per pound, FOB car/truck 
(compression charges not paid).

In Kansas, a mixed lot containing a moderate volume of mostly color 52 and better, leaf 5-7, staple 36 and 37, mike 24-43, strength 26-29, uniformity 78-81, and 100 percent extraneous matter 
sold for around 46.75 cents, same  terms as above.

A light volume of CCC-loan equities traded for 4.25 cents.


West Texas 
A moderate volume of mostly color 41 and 51, leaf 5, staple 35, mike 35-48, strength 26-30, uniformity   79-81, and 100 percent extraneous matter sold for around 56.00 cents per pound, FOB car/truck 
(compression charges not paid).  

A light volume of mostly color 31 and 41, leaf 5, staple 36 and longer, mike 30-32, strength 27-33, and uniformity 78-82 sold for around 54.75 cents, same terms as above.  

A light volume of mostly color 41, leaf 5-7, staple 35 and longer, mike 30-48, strength 25-32, uniformity 78-82, and 50 percent extraneous matter sold for around 54.50 cents, same terms as above. 

A light volume of CCC-loan equities traded for 4.25 cents.



Western Markets Regional Summary 


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average local spot prices were lower.  No forward contracting or domestic mill activity was reported.  Foreign mill inquiries 
were light.   
     
Triple digit temperatures were the norm, with daytime highs in the mid-100s in Arizona.   Nighttime temperatures were in the mid-80s.  Producers irrigated the crop to minimize heat stress.  
Excessive heat warnings were in effect through the evening of June 13.  No insect issues were reported.  Some acreage in the Safford area showed late progress and was slowed by cool spring 
conditions. New Mexico and El Paso, TX received another round of rainfall on Monday, June 10.  Rainfall amounts were from three-quarters of an inch to one and three-quarter inches.    
Local sources reported that the crop was struggling and behind on development.   Warm weather was needed to get the crop back on track.        
 
       
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average local spot prices were lower.  No forward contracting or domestic mill activity was reported.   Foreign mill inquiries 
were light.  
     
Triple digit temperatures reached the mid-to-high 100s.  The heat will be good for the crop.  Irrigation was applied to help ease heat stress.  Local sources reported lygus infestations in Kern 
County fields.  Some producers have sprayed multiple times to control the pests.  Overall, the crop made good progress and advanced to squaring stage.      

 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies were moderate.  Demand was light.  Average local spot prices were steady. No forward contracting or domestic mill activity was reported.  Foreign mill 
inquiries were light for current crop and new-crop cotton.  New-crop prices were firm and no new sales were reported.  
     
Hot, dry conditions dominated the weather pattern for most of the Far West.  Triple digit temperatures were reported in Arizona and California.  After an unusually cool spring weather, the crop is 
getting the heat units this week.  Crop progress is steady as it advanced to squaring and blooming stages in Arizona and squaring in California.  Producers irrigated the crop to minimize heat stress.  
No insect issues were reported for the Arizona crop.  California producers sprayed for lygus.  Moisture was received in New Mexico and El Paso, TX on Monday, June 10.  Precipitation amounts were around 
three-quarters of an inch to one and three-quarter inches.   Warm, dry conditions are needed to get the crop back on track.
     
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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