USDA Weekly Cotton

 
Mp_cn812  
October 22, 2021 
Weekly Cotton Market Review  
 


Spot quotations averaged 29 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 104.64 cents per pound for the week ending Thursday, October 21, 2021. 
The weekly average was up from 104.35 cents last week and up sharply from 65.72 
cents reported the corresponding period a year ago.  Daily average quotations 
ranged from a high of 107.55 cents Wednesday, October 20 to a low of 102.96 cents 
Thursday, October 21. Spot transactions reported in the Daily Spot Cotton Quotations 
for the week ended October 21 totaled 24,200 bales. This compares to 12,723 
reported last week and 30,359 spot transactions reported the corresponding week 
a year ago. Total spot transactions for the season were 90,828 bales compared to 
283,443 bales the corresponding week a year ago. The ICE December settlement price 
ended the week at 106.14 cents, compared to 107.10 cents last week. 


Southeastern Markets Regional Summary 


Spot cotton trading was inactive. Supplies and producer offerings were light. 
Demand was good.  Average local spot prices were firm. Producers took advantage 
of attractive ICE futures during the period to forward contract and fix prices 
on a light volume of 2022-crop cotton. Trading of CCC-loan equities was inactive. 
Foreign mill inquiries were moderate. Interest was best from China, Thailand, and 
Turkey. The COVID-19 Pandemic continued to place pressure on commodity markets and 
shipping logistics. Ports were congested. Global economic recovery was slow. 
Vaccinations and boosters were administered.  
 
Harvesting expanded at a steady pace under clear skies during the period in central 
Alabama and Georgia. Producers worked long hours picker harvesting seed cotton ahead 
of forecasted rainfall. Peanut harvest was concurrent with cotton harvesting activities 
this season because of the late growing season. Modules were hauled from the fields to 
gin yards and had begun to accumulate backlogs. Defoliants were applied in southern 
Alabama and in the Florida Panhandle. Boll rot was reported by industry sources in 
southern Alabama and anticipated to effect yield and quality. Initial harvesting had 
begun, and ginning will begin next week.  According to the National Agricultural 
Statistics Services (NASS) Crop Progress report released on October 18, cotton 
harvested had reached 17 percent in Alabama, and 15 percent in Georgia.  
     
Harvesting advanced rapidly in the Carolinas and in Virginia under good weather 
conditions. Final defoliation applications were applied. Producers were encouraged with 
excellent yields up to 1,700 pounds of lint per acre on early harvested fields. 
Gins began operating full shifts and some added a second shift. Cotton harvesting had 
reached 18 percent in North Carolina and Virginia, and 8 percent in South Carolina, according to NASS.    
 
Textile Mill 

Domestic mill buyers inquiries were light. No new sales were reported. Yarn demand 
remained good and mills continued to operate at capacity. Reports indicated labor 
shortages remained a concern, but had improved. Mills continued to produce personal 
protective equipment for frontline workers and consumers. 
 
Demand through export channels was good. Chinese mill buyers inquired for a moderate 
volume of color 31, leaf 3, and staple 37 for February to March 2022 shipment and a 
moderate volume of USDA Green Card Class, color 31, leaf 3, staple 36 for prompt shipment. 
Turkish mill buyers inquired for a moderate volume of USDA Green Card Class, color 41, 
leaf 4, and staple 37 for prompt shipment.    Thailand mills inquired for a moderate volume 
of USDA Green Card Class, color 41, leaf 3, and staple 37 for January to April 2022 shipment. 
Additional inquiries included a moderate volume of color 41, leaf 4, and staple 35 for January to May 2022 shipment.   

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 firm.  Trading of  CCC-loan equities was inactive. No forward 
contracting was reported.  The COVID-19 Pandemic continues to negatively impact the overall 
global economy and supply chains.  Vaccinations proceeded at a slow pace.   

Clear skies and cooler temperatures prevailed during the period.  A cold front entered the area 
dropping daytime highs into the 70s. Overnight lows were in the 40s and 50s. Only trace amounts 
of precipitation were reported in a few areas.  Harvesting progressed at a steady pace under ideal 
weather conditions.  Ginning was gaining momentum in Arkansas, Missouri, and Tennessee. Some gins 
were experiencing labor shortages due to COVID, which has caused them to run 12-hour shifts instead 
of their usual 24-hour operation. The Memphis and Dumas Classing Offices increased shift operations 
to accommodate the influx of samples being received from gins.  Producers were pleased with initial 
quality grades and are hopeful that yields will be better than average this season.  Sources have 
reported yields ranging from 1,800 to 2,000 pounds per acre. According to the National Agricultural 
Statistics Services Crop Progress report released on October 18, harvesting had advanced to 34 percent 
in Arkansas, 32 in Missouri, and 15 percent in Tennessee. All figures were behind the five-year average.  
 
South Delta 

Spot cotton trading was inactive.  Supplies of available cotton were light.  Demand was good.  
Average local spot prices were firm.  Trading of  CCC-loan equities was inactive. No forward 
contracting was reported. The COVID-19 Pandemic continues to negatively impact the overall global 
economy and supply chains. Vaccinations continue at a slow rate regionally. 
     
Optimal weather conditions were the norm during the period with sunny and clear skies. A cold front 
entered the area dropping daytime temperatures into the 70s. Overnight lows were in the 40s and 
50s. No precipitation was recorded. All harvest activities, including defoliation and picking, 
progressed at a rapid pace in Louisiana. Ginning gained momentum as modules of cotton accumulated 
on gin yards.  Producers were encouraged by the warm daytime temperatures and were hopeful that 
yields would be better than average. Sources have reported yields ranging from 800 to 1,000 pounds 
per acre.  According to the National Agricultural Statistics Services Crop Progress report 
released on October 18, harvesting had advanced to 54 percent in Louisiana and 32 percent in 
Mississippi. These figures were behind the five-year average.  

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 steady. Producer interest in forward contracting was light for 
the 2021-crop, but moderate for the 2022-crop. Trading of CCC-loan equities was inactive. 
Foreign mill inquiries were moderate. Interest was best from China, Thailand, and Turkey. 
The COVID-19 Pandemic continued to place pressure on shipping logistics and slowed global 
economic recovery. Ports began working seven days per week to ease congestion. Vaccination 
clinics continued.  
 In the Upper Coast, recent rainfall brought around one and one-half inches of precipitation.  
Harvesting made good progress with sunny conditions prevailing after fields dried and soils 
firmed. In the Rio Grande Valley, ginning neared the end. Modules were hauled from the fields 
to the gin yards in the Coastal Bend. In the Blackland Prairies, fields dried and harvesting 
gained momentum. Local sources estimated that harvest was 25 percent completed in their counties. 
The Corpus Christi Classing Office surpassed classifying one million samples. 
     
In Kansas, harvesting was at 3 percent completed, slightly behind the 5 percent five-year average, 
and Oklahoma was 14 percent harvested compared to the 16 percent five-year average, according to 
the National Agricultural Statistics Services Crop Progress report released on October 18. Cotton 
conditions were mostly fair to good in both states.  
 
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 the 2022-crop 
was good. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest 
was best from China, Thailand, and Turkey. The COVID-19 Pandemic continued to place pressure on 
commodity markets and shipping logistics. The shortage of qualified truck drivers caused further 
delays. Global economic recovery was slow. Vaccinations continued to be offered to the public.  
 
Harvesting expanded rapidly in the High Plains and Rolling Plains under clear skies. Daytime highs 
were in the mid-60s to upper 80s, with overnight lows in the upper 20s to low 50s. A few locations 
in the Panhandle fell below freezing. Modules were transported from the fields to the gin yards. 
Most gins had initiated services with the buildup of modules. The growing season is ending and 
later planted stands were sprayed with defoliants. The Abilene, Lamesa, and Lubbock Classing Offices extended laboratory hours to full shifts.   

Trading 
 
East Texas 
 
In Texas, lots containing a heavy volume of color 31 and better, leaf 3 and better, staple 36 and longer, 
mike 35-49, strength 27-35, and uniformity 78-83 sold for 107.50 to 110.50 cents per pound, FOB warehouse 
(compression charges not paid).  
 
Lots containing a heavy volume of color 22 and better, leaf 3 and better, staple 34 and longer, mike 35-48, 
strength 26-32, and uniformity 78-83 sold for 100.00 to 107.25 cents, same terms as above. 
 
A  light volume of color 42 and  better, leaf 3 and 4, staple 36  and  longer, mike 35-48, strength 28-31, 
uniformity 78-83, and 100 percent extraneous matter (Seed Coat Fragments) sold for around 96.50 cents, same terms as above. 

West Texas 
 
A heavy volume of lots containing mostly color 22 and better, leaf 3 and better, staple 36 and longer, mike 40-44, 
strength 31-34, and uniformity 80-83 sold for 107.75 to 110.50 cents per pound, FOB car/truck (compression charges not paid). 
 
A heavy volume of lots containing color 32 and better, leaf 4 and better, staple 34 and longer, mike 29-44, 
strength 27-34, and uniformity 77-83 sold for 100.25 to 107.50 cents, same terms as above. 
 
Mixed lots containing a moderate volume of color 22 and better, leaf 2-4, staple 34-36, mike 28-38, strength 27-34, 
and uniformity 77-82 sold for 98.50 to 100.00 cents, same terms as above. 


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 firm. 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.   
 
Temperatures were mostly in the mid-80s to low 90s for Arizona.  Temperatures in New Mexico and El Paso, TX 
was in the mid-70s to low 80s.  No rainfall was recorded for the region.   A storm front brought strong winds 
mid-week to Arizona.  Defoliation activities gained momentum, but harvesting was slow. No ginning was reported 
in central Arizona or the Safford Valley. Ginning continued uninterrupted in Yuma, AZ.  New Mexico and El Paso, 
TX producers continued with defoliation activities.  No ginning was reported.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.  Average local prices were firm.    
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.     
 
Temperatures were mostly in the 70s and 80s.    Mid-week, a storm front pushed through the Valley, 
bringing wind and around one-tenth of an inch of moisture.  Snow was deposited in the northern portion of 
the Sierra Nevada Mountain range.  Fieldwork was active.  Harvesting gained momentum.  Modules were stored in 
fields or trucked to gin yards.  Ginning continued.   
 
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.     
 
Far West weather was mostly in the 70s and 80s.  A Pacific storm system mostly brought strong winds to 
the region mid-week.  Snowfall was reported in the northern Sierra Nevada Mountain range.     
Fieldwork was active. Defoliation and harvesting gained momentum.  More San Joaquin Valley gins started 
operations in the period.  No ginning was reported for Arizona, New Mexico, and El Paso, TX.   

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 #1 
FOR UPLAND COTTON 
October 21, 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 weeks domestic 
mill use. The quota will be established on October 28, 2021, allowing importation of 10,773,610 
kilograms (49,482 bales of 480- lbs.) of upland cotton.       
     
Quota number 1 will be established as of October 28, 2021 and will apply to upland cotton purchased 
not later than January 25, 2022 and entered  into the U.S. not later than April 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 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.  





     




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