USDA Weekly Cotton

Mp_cn206 
November 29, 2019
Weekly Cotton Market Review 


Spot quotations averaged 52 points higher 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 60.83 cents per pound for the 
week ending Thursday, November 28, 2019. The weekly average 
was up from 60.31 last week, but down from 73.55 cents 
reported the corresponding period a year ago. Daily average 
quotations ranged from a low of 60.03 cents Friday, November 
22 to a high of 61.16 cents Tuesday, November 26. Spot 
transactions reported in the Daily Spot Cotton Quotations 
for the week ended November 28 totaled 99,595 bales. This 
compares to 36,236 reported last week and 37,633 spot 
transactions reported the corresponding week a year ago. Total 
spot transactions for the season were 407,176 bales compared 
to 105,611 bales the corresponding week a year ago. The ICE 
March settlement price ended the week at 65.81 cents, compared 
to 64.01 cents last week. 


Southeastern Markets Regional Summary 

Spot cotton trading was slow.  Supplies and producer offerings 
were moderate.  Demand was moderate.  Average local spot prices 
were firm. Trading of CCC-loan equities was inactive.  Fair to 
partly cloudy conditions were observed across the lower 
Southeast throughout the period.  Daytime high temperatures in 
the 70s dipped into the low 60s  to upper 50s as a cold front 
moved across the region over the weekend, but temperatures warmed 
back into the 70s later in the holiday week.  Widespread shower 
activity brought light to moderate precipitation to much of north 
Alabama and areas throughout Georgia.  In north Alabama and north 
Georgia, precipitation totals measured from around one-quarter of 
an inch to one inch of moisture.  Harvesting and stalk shredding 
was briefly interrupted in areas that received the heaviest 
rainfall.  Lesser accumulations of trace amounts to around one-half
 of an inch of moisture were observed in south Alabama, south Georgia, 
and the Florida panhandle. Harvesting and fieldwork mostly continued 
without interruption in these areas.  Backlogs of modules accumulated 
on gin yards and ginning continued around the clock.  According to the 
National Agricultural Statistics Services (NASS) Crop Progress report 
released November 25, harvesting advanced to 92 percent completed in 
Alabama and 85 percent completed in Georgia. 
 A mix of cloudy and sunny conditions were observed across the upper 
Southeastern region during the period.  Daytime high temperatures 
varied from the upper 50s to the low 70s.  Scattered showers brought 
light to moderate precipitation to areas throughout the Carolinas and 
Virginia over the weekend.  Precipitation totals measured from         
one-quarter of an inch to one-half of an inch in South Carolina.  
Heavier accumulations of around          three-quarters of an inch to 
one inch were observed in North Carolina and Virginia.  Harvesting and 
fieldwork was slowed or stopped in areas due to wet conditions.  
Entering the week, several days of sunshine helped to dry rain soaked 
lint and allow soft soils to firm.  Harvesting advanced as field 
conditions allowed.  Gins continued to process backlogs of modules and 
the Florence Classing Office continued around the clock classing operations.  
According to NASS, harvesting advanced to 93 percent completed in Virginia, 
92 in South Carolina, and 89 percent completed in North Carolina.  
 
Textile Mill 
Inquiries from domestic mill buyers was light, no sales were reported.  
Reports indicated that most mills have covered their raw cotton needs 
through the first quarter of 2020.  Domestic mills were focused on 
scheduling deliveries of raw cotton to mills during the holiday season.  
Some mills planned up to one week of downtime for the Thanksgiving holiday.  
Yarn demand was moderate and reported as lackluster approaching first 
quarter 2020; the undertone from mill buyers was cautious due to economic 
uncertainty regarding U.S./China trade relations. 
     Demand through export channels was moderate to good. Representatives 
for mills in Vietnam purchased a moderate volume of USDA Green Card Class, 
color 21 and 31, leaf 3, and staple 36 and 37 for nearby shipment.  Agents 
for mills in Pakistan purchased mixed lots containing color mostly 31 and 41, 
leaf mostly 3 and 4, and staple 36-38 for nearby shipment.  Turkish mills 
inquired for any low grade styles of cotton for nearby shipment; no 
additional sales were reported. 

Trading 
..Even-running lots containing color 41, leaf 3-5, staple 38, mike 45-47, 
strength 31-33, and uniformity 81-84 sold for around 65.00 cents per pound, 
FOB car/truck (Rule 5, compression charges paid, 30 days free storage).  


South  Central Markets Regional Summary 

North Delta 
Spot cotton trading was slow.  Supplies of available cotton were moderate.  
Demand was very light.  Average local spot prices were firm.  Trading of 
CCC-loan equities was inactive.  No forward contracting was reported. 
Mostly cool and cloudy conditions prevailed during the reporting period.  
A storm system brought about 1 inch of rain early in the week.  Daytime 
temperatures were mostly in the 50s and 60s.  Overnight lows dipped into 
the low 30s, then hovered in the low 40s.  A few fields remained unharvested 
due to the unfavorable weather conditions.  Fall     fieldwork was completed 
in a few areas.  Ginning continued at a steady pace, although a few smaller 
gins had completed annual pressing operations.  Some larger gins still had a 
considerable amount of cotton left to gin.  According to the National 
Agricultural Statistics Services Crop Progress report released November 25, 
harvesting had reached 98 percent completed in Arkansas, 91 in Missouri, and 
91 percent completed in Tennessee.  Reported yields were around 1,250 pounds 
per acre.  
 
South Delta 
Spot cotton trading was inactive.  Supplies of available cotton were moderate.  
Demand was very light.   Average local spot prices were firm.  Trading of 
CCC-loan equities was slow. No forward contracting was reported.  
Heavy rain showers brought around 1 inch of rain to the region early in the 
period. Cold air moved in behind the front and overnight lows dropped into 
the mid-30s.  Daytime highs were mostly in the low 60s to 70s.  Harvesting 
was virtually completed in Louisiana, but the precipitation slowed all field 
activities in Mississippi.  Some fieldwork was complete and soil amendments 
were applied in preparation for spring planting.  A few gins finished annual 
operations, but most gins continued at a steady pace.  A few gins reported 
brief delays, due to mechanical problems. According to the National 
Agricultural Statistics Services Crop Progress report released November 25, 
harvesting had reached 99 percent completed in Louisiana and 94 percent in 
Mississippi.  Reported yields of 1,250 to 1,400 pounds per acre were 
widespread.  According to the U.S. Drought Monitor, a few pockets of abnormally 
dry conditions persisted in northeastern Louisiana; normal-to-surplus soil 
moisture conditions prevailed throughout the region. 



Trading 
  
North Delta 
..A light volume of color 42 and better, leaf 4 and better, staple 36 and longer, 
mike 42-47, strength 30-35, and uniformity 80-84 sold for around 62.75 cents per 
pound, FOB car/truck (Rule 5, compression charges paid). 

..A heavy volume of 2018-crop, CCC-catalog cotton, color 42, leaf 5, staple 36 
and 37, mike averaging 4.5, strength averaging 30.1, and uniformity averaging 
81.9 sold for around 55.50 cents, FOB warehouse (compression charges not paid). 
 
South Delta 
..A light volume of 2018-crop, CCC-catalog cotton, color 42, leaf 5, staple 36 
and 37, mike averaging 4.5, strength averaging 30.1, and uniformity averaging 
81.9 sold for around 55.50 cents per pound, FOB warehouse (compression charges 
not paid). 



Southwestern Markets Regional Summary 
 




East Texas 
Spot cotton trading was active.  Supplies and producer offerings were heavy.  
Demand was very good.  Average local spot prices were higher.  Producer interest 
in forward contracting was light.  Trading of CCC-loan equities was moderate.  
Invitations to bid on CCC-Catalog cotton was opened on November 21 and closed on 
November 25 for a heavy volume of East Texas and Kansas 2018-crop cotton.  Not 
all lots sold.  Foreign inquiries were moderate.  Interest was best from India, 
Pakistan, and Turkey.   Some gins completed the season in south Texas and the 
Upper Coast, but a few continued to operate assisting other gins in pressing the 
remaining modules.  Fieldwork was active and fertilizer was applied.  Producers 
prepped fields for February sowing of grain and cotton.  Ginning in the Winter 
Garden area is expected to continue into February.  Several gins in the Blackland 
Prairies completed the season, while other gins expected to press bales into 
January.  Fields were shredded, plowed, and planted in winter wheat.  Fertilizer 
was applied. Dryland fields were harvested in Kansas.  Irrigated fields had been 
harvested earlier.  Stalks were shredded and fields were prepared for the next crop.  
In Kansas, cotton harvested was at 64 percent completed,  ahead of 36 last year, and 
ahead of 53 percent for the five-year average, according to the National Agricultural 
Statistics Services (NASS) Crop Progress report released on November 25.  Wind and 
rain in Oklahoma interrupted fieldwork and slowed module pickups in the fields.  
Module accumulations on gins yards was light, but no ginning interruptions were 
reported.  According to NASS, cotton harvested was 74 percent completed, ahead of 
68 percent last year, and ahead of 69 percent for the five-year average.                    
 
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 inactive.  An 
invitation to bid on CCC-Catalog cotton was opened on November 21 and closed on 
November 25 for a light volume of 2018-crop cotton.  Not all lots sold.  Foreign 
inquiries were moderate.  Interest was best from India, Pakistan, and Turkey.   
     Three cold fronts brought gusty winds on November 26, wintry precipitation on 
November 27, and thunderstorms on November 28.  Daytime high temperatures were in 
the low 30s to 60s, and overnight lows were in the low 20s to 40s.  Harvesting and 
module transportation were stalled mid-week. Some gins closed for the Thanksgiving 
holiday so the weather delay was timely.  Gins shut down operations when wind gusts 
became too high for fire safety.  All of Texas was 68 percent harvested, compared 
to 58 percent the previous year, and ahead of 61 percent for the five-year average, 
according to the National Agricultural Statistics Services Crop Progress report 
released on November 25.  The organic crop was about 75 percent harvested, but only 
a limited amount has been ginned.  Cover crops were planted.  


Trading 
 
East Texas 
..In Texas, an even-running lot containing a heavy volume of mostly color 31 
and better, leaf 2 and 3, staple 36-39, mike 40-50, strength 28-37, and 
uniformity 78-83 sold for around 65.00 cents per pound, FOB warehouse 
(compression charges not paid). 

..A mixed lot containing a moderate volume of mostly color 32 and 43, leaf 2 
and 3, staple 37 and 38, mike 43-48, strength 30-34, and uniformity 80-82 sold 
for around 56.00 cents, same terms as above.  

..In Oklahoma, a moderate volume of mostly color 21 and 31, leaf 3 and 4, 
staple 36-38, mike 42-49, strength 30-36, and uniformity 79-83 sold for around 
64.00 cents, FOB car/truck (compression charges not paid).   

..A heavy volume of 2018-crop, CCC-catalog cotton, color 23, leaf 3, staple 35-38, 
mike 43-49, strength    29-31, and uniformity averaging 80.0 sold for 48.69 cents 
per pound, FOB warehouse (compression charges not paid). 

..A moderate volume of 2018 CCC-loan equities traded for -1.50 to -2.25 cents

 
West Texas 
..A heavy volume of color 11 and 22, leaf 1 and 2, staple 37 and 38, mike 39-51, 
strength 29-33, and uniformity 79-82 sold for around 66.75 cents per pound, FOB 
ar/truck (compression charges not paid).   

..A moderate volume of mostly color 21, leaf 2 and 3, staple 37, mike 40-49, 
strength 27-34, uniformity     78-83, and 25 percent extraneous matter sold for 
around 61.50 cents, same terms as above.  

.. An even-running lot containing a moderate volume of mostly color 21 and 31, 
leaf 2-4, staple 34-37, mike 39-46, strength 27-32, and uniformity 77-82 sold 
for around 60.00 cents, same terms as above.  

..A light volume of 2018-crop, CCC-catalog cotton, mostly color 41, leaf 8, 
staple 37-40, mike 35-49, strength 27-32, and uniformity averaging 79.5 sold 
for around 50.39 cents per pound, FOB warehouse (compression charges not paid).  


Western Markets Regional Summary


Desert Southwest (DSW) 
Spot cotton trading was slow.    Supplies and demand were light.  Most producers 
put 2019-crop cotton into the CCC-loan program or into merchant marketing pools.    
Average local spot prices were higher.  No forward contracting or domestic mill 
activity was reported. An open invitation to bid on CCC-Catalog cotton was opened 
on November 21 and closed on November 25 for a light volume of New Mexico 2018-crop 
cotton.  No bids were received.  Foreign mill inquiries were light.     
     Temperatures stayed in the low 70s and high 60s in central Arizona as another 
system brought clouds and a chance of rain late in the period.     Heavy rains from 
the previous week halted all harvesting in the Safford Valley for nearly five days 
as soils were too wet for fieldwork.  Some module movement from fields to gins was 
also limited in the period.    Local sources reported about 90 percent of the crop 
was in modules prior to the storm.  Strong winds from the west helped to dry fields 
from heavy morning dew mid-week.  Temperatures were in the mid-60s to   mid-50s for 
New Mexico and El Paso, TX.    A wind advisory was in effect for mid-week in southern 
New Mexico.  Rainfall entered the area late in the period.  Sources estimated 25 to 35 
percent of the crop remained to be harvested.  Harvesting and ginning continued.  Most 
gins were taking two days off for the Thanksgiving holiday; others will take off for 
three or more days.
 
 
San Joaquin Valley (SJV) 
Spot cotton trading was inactive.  Supplies and demand were light.    Average local 
spot prices were higher.  Producers delivered 2019-crop cotton into the CCC-loan 
program or into merchant marketing pools.  No forward contracting or domestic mill 
activity was reported.   Foreign mill inquiries were light.             
     Temperatures were in the 60s early week.  Strong winds ahead of a winter storm 
dropped temperatures into the low 50s late in the period.  Nighttime lows were in 
the 30s and 40s.   The winter storm brought extremely cold temperatures and rain.  
Producers shredded stalks.  Ginning continued uninterrupted.  Most gins were taking 
two days off for the Thanksgiving holiday; others will take off for three or more days.           
 
American Pima (AP) 
Spot cotton trading was inactive.  Supplies of       2018-crop cotton were light.  
Supplies of 2019-crop cotton moderate.  Demand was light.  Average local spot prices 
were steady.  Producers delivered       2019-crop cotton into the CCC-loan program or 
into merchant marketing pools.  No forward contracting or domestic mill activity was 
reported.   Foreign mill inquiries were light and mostly for prompt shipment.     
     Temperatures varied in the 50s to the 70s, as clouds and rain entered the Far West 
region late in the period.   Overnight lows were in the 40s and 50s.  Heavy showers late 
week slowed harvesting and module movement in central Arizona.  Ginning continued 
uninterrupted in the region.  Most gins were taking two days off for the Thanksgiving 
holiday; others will take off for three or more days.         


Trading 
 
Desert Southwest 
..A heavy volume of color 11 and 21, leaf mostly 2, staple 36-39, mike averaging 44.8, 
strength averaging 31.0, and uniformity averaging 81.7 traded for 64.00 cents per pound, 
uncompressed FOB warehouse.   
 
San Joaquin Valley 
..No trading activity was reported. 

American Pima 
..No trading activity was reported. 

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