Mp_cn812 June 24, 2022 Weekly Cotton Market Review Spot quotations averaged over 17 cents lower 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 121.80 cents per pound for the week ending Thursday, June 23, 2022. The weekly average was down from 139.18 cents last week, but up from 82.65 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 129.50 cents Friday, June 17 to a low of 113.65 cents Thursday, June 23. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 23 totaled 2,615 bales. This compares to 1,428 reported last week and 725 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,621,858 bales compared to 1,375,146 bales the corresponding week a year ago. The ICE Oct settlement price ended the week at 109.01 cents, compared to 126.13 cents last week. Southeastern Markets Regional Summary Spot cotton trading was inactive. Supplies were light. Demand was moderate. Producer offerings were light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. The COVID-19 Pandemic continues to disrupt labor availability and logistics but cities and locales were easing COVID restrictions. Hot and humid conditions dominated the weather pattern across the lower southeast with a mix of sun and clouds. Daytime temperatures were in the upper 90s to low 100s, and some locales recorded new record highs. Heat advisories were issued for dangerously hot conditions. Areas throughout Alabama, the Florida Panhandle, and portions of south Georgia received scattered rainfall from isolated thunderstorms. Weekly accumulated precipitation totals measured from trace amounts to around 1 inch of precipitation. The moisture invigorated seedlings and brought relief to young heat-stressed plants. Additional moisture will be needed in the weeks ahead to allow fruiting stands to advance satisfactorily. Producers maintained irrigation schedules. Planting neared completion. Squaring advanced and blooms were reported in some of the earliest planted fields. In Georgia, boll-setting had begun in older fields. Insect pressure was building in some areas, and producers monitored pest populations. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released June 21, cotton squaring was reported at 29 percent in Alabama and 26 percent in Georgia. Sunny to partly cloudy conditions were observed across the upper southeast during the period. Daytime high temperatures varied from the 80s to 90s. Isolated afternoon thunderstorms brought sporadic moisture to areas throughout the Carolinas and Virginia. Weekly accumulated rainfall totals measured 1 to 2 inches. Producers welcomed the moisture which helped relieve droughty conditions. More consistent rainfall will be needed in the weeks ahead to invigorate young plants and allow stands to develop satisfactorily. Pests were increasing, and producers monitored populations for threshold limits. According to NASS, squaring advanced to 35 percent in Virginia and 13 percent in the Carolinas. Textile Mill Domestic mill buyers inquired for a moderate volume of 2022-crop cotton, color 41, leaf 4, and staple 34 and 35 for fourth quarter 2022 and first quarter 2023 delivery. No sales were reported. Yarn demand remained good, but mills operated at capacity as allowed by available labor. Mills continued to produce personal protective equipment for frontline workers and consumers. Demand through export channels was good. Agents throughout the Far East inquired for any discounted styles of cotton. Trading • A light volume of color 31, leaf 2 and 3, staple mostly 36, mike 37-52, strength 29-31, and uniformity 80-83 sold for around 122.25 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). South Central Markets Regional Summary North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international marketing channels, domestic supply chains, and the labor force overall. Hot and dry conditions continued to dominate the weather pattern during the report period. No precipitation was reported in most cotton-producing areas in the Memphis territory. Daytime temperatures were in the high 90s. The Memphis area saw the heat index rise to 108 degrees. Low temperatures were in the mid-60s to mid-70s. Local experts in Missouri reported that the overall crop condition was good. Some producers had begun irrigating, but precipitation was needed for good crop development throughout the region. Producers applied crop protection chemicals to control weeds and insect pests, including thrips in late-planted cotton and plant bugs in early-planted stands. Fields were scouted for spider mites. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report, released on June 21, cotton squaring advanced to 26 percent complete in Arkansas, 6 in Missouri, and 23 percent in Tennessee. Arkansas and Missouri were more than 2 weeks behind the five-year average; Tennessee was slightly behind the five-year average. NASS also reported that the crop condition in Arkansas was mostly good to excellent and fair to good in Missouri and Tennessee. Virtual and in-person industry meetings were being planned and attended. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. A light volume of forward contracting was reported. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international supply chains and the worldwide labor force. Hot and dry conditions continued to prevail during the report period. Daytime temperatures were in the high 90s. The heat index values were up to 110 degrees throughout the region. Low temperatures were in the low 70s. No rainfall was reported. Local experts in Louisiana reported that the crop made excellent progress under hot weather conditions. Producers were irrigating at full capacity, but cotton producing areas needed rainfall to promote normal crop development. Squaring advanced rapidly in Louisiana. Plants were blooming in early-planted fields, and a few stands were treated with plant growth regulators. Insect pressure from aphids and plant bugs was light and easily controlled. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report, released on June 21, cotton squaring in Louisiana jumped from 38 to 74 percent, while Mississippi advanced from 7 to 14 percent. The figure for Louisiana was 29 points above the five-year average; Mississippi was slightly below the five-year average. NASS also reported that the crop condition in Louisiana was mostly good, while Mississippi was mostly fair to good. Virtual and in-person industry meetings were being planned and attended. 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 inactive. Supplies and producer offerings were light. Demand was very light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Stands in the Rio Grande Valley had a good boll load with daytime highs in the 90s. Bolls had begun to pop open. Stray showers brought more than one-quarter of an inch of rainfall to some fields. Irrigation was underway to ease heat stress. Stands progressed in the Coastal Bend and in the Upper Coast under hot, sunny conditions with daytime temperature highs in the upper 80s to low 100s. A stray shower brought light amounts of precipitation, but more rainfall is needed. Heat units increased and most fields in the Upper Coast were at cut-out. Irrigation was underway in the southern Blackland Prairies, but dryland stands were putting on fruit and needed moisture. Treatments for fleahoppers were applied along the Brazos River Bottoms. Potassium deficiencies were reported in the dryland fields of the northern Blackland Prairies. Rainfall would help replenish soils and alleviate deficiencies as the plants reached peak water demand. In Kansas, planting was completed, and cotton squaring had reached 13 percent, according to the National Agricultural Statistics Service’s (NASS) Crop Progress and Condition report released on June 21. Planting continued in Oklahoma with daytime highs in the upper 90s to low 100s. Planting was 78 percent completed, according to NASS. West Texas Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Droughty and windy conditions continued to cause havoc on stand development with daytime high temperatures in the mid-90s to low 100s. Wind gusts further depleted soil moisture, and rainfall is urgently needed. Stray showers in the Panhandle brought trace amounts of rain to localized areas. Emergence was ununiformed in dryland fields. Stands had begun to square. Stand counts were not desirable, and decisions were made by adjusters on which fields would be failed. Stands were monitored for thrips, fleahoppers, and other insects. Some fields were sprayed for weed control when the winds calmed. Meetings were held and well attended. Trading East Texas • No trading activity was reported. West Texas • Lots containing a moderate volume of color 11 and 21, leaf 1 and 2, staple 34 and longer, mike 37-49, strength 28-32, and uniformity 79-83 sold for 132.50 to 135.00 cents per pound, FOB car/truck (compression charges not paid). • A moderate volume of color 11 and 21, leaf 4 and better, staple 36 and longer, mike 37-49, strength 27-31, and uniformity 79-81 sold for 129.00 to 130.00 cents, same terms as above. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. Producer interest in forward contracting was light. No sales were reported. Foreign mill inquiries were light. Scattered monsoonal thunderstorms brought over 1 inch of rainfall to southeastern Arizona and New Mexico. Some areas received hail, but no crop damage was reported. Rainfall would be welcomed in Yuma and southwestern Arizona, with daytime temperature highs in the low to upper 100s. Irrigation was underway to ease heat stress and enhance development. Optimism was high in El Paso, TX, where beneficial rainfall was received during the reporting period that helped advance the cotton crop. Irrigation strategies were under consideration. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 pandemic continued to place pressure on commodity markets and global shipping logistics. The crop advanced under plentiful sunshine and a trace amount of rain, with daytime temperatures in the mid-70s to low 100s. More precipitation would be beneficial to support well water levels and ease persistent droughty conditions. The second irrigation was underway. Some issues were reported with having enough available well water to move across the entire field. Stands were blooming. Insect pressure was light. National level meetings were attended. American Pima (AP) Spot cotton trading was inactive. Supplies were light. Demand was good. Average local prices were steady. No new sales were reported. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 Pandemic continued to cause shipping delays and supply chain disruptions. Stands advanced in the San Joaquin Valley with daytime high temperatures in the upper 70s to low 100s. Sunshine was plentiful, but a thunderstorm mid-week brought trace amounts of moisture. Stands were blooming. Most producers applied the second irrigation. Recent rainfall and overcast conditions helped the crop advance in El Paso, TX and in New Mexico. Producers were optimistic about the amount of irrigation allocations and made plans for how to use the water to maximize the benefits. Spotty rainfall was received in central Arizona, and the crop advanced. Wells were used to supplement irrigation water. Insect pressure was light. Trading Desert Southwest • No trading activity was reported. San Joaquin Valley • No trading activity was reported. American Pima • No trading activity was reported. USDA ANNOUNCES SPECIAL IMPORT QUOTA #10 FOR UPLAND COTTON June 23, 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 June 30, 2022, allowing importation of 11,099,187 kilograms (50,978 bales of 480-lbs) of upland cotton. Quota number 10 will be established as of June 30, 2022 and will apply to upland cotton purchased not later than September 27, 2022 and entered into the U.S. not later than December 26, 2022. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period February 2022 through April 2022, 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.