USDA Weekly Cotton

Mp_cn812  
November 9, 2018 
Weekly Cotton Market Review 

Average spot quotations were 70 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 74.83 cents per pound for the 
week ending Thursday, November 8, 2018. The weekly average was up from 74.13 last week and 66.94 
cents reported the corresponding period a year ago. Daily average quotations ranged from a low 
of 73.64 cents Tuesday, November 6 to high of 75.22 cents Thursday, November 8. Spot transactions 
reported in the Daily Spot Cotton Quotations for the week ended November 8 totaled 11,691 bales. 
This compares to 5,847 reported last week and 62,244 spot transactions reported the corresponding 
week a year ago. Total spot transactions for the season were 50,861 bales compared to 179,951 
bales the corresponding week a year ago. The ICE December settlement prices ended the week at 
79.01 cents, compared to 79.03 cents last week. 


Southeastern Markets Regional Summary
 

Spot cotton trading was inactive.  Supplies and producer offerings were light.  Demand was 
moderate.  Average local spot prices were higher. Trading of CCC-loan equities was inactive. 
    
Harvesting and fieldwork advanced across the lower Southeastern region over the weekend as 
mostly sunny weather prevailed with daytime highs in the upper 60s to lower 70s.  Entering 
the week, foggy early morning conditions, overcast skies, and scattered rain events delayed 
harvesting.  Fieldwork came to a complete halt later in the week as a series of frontal 
systems moved across the Southeast and brought wet weather to areas throughout the region.  
Precipitation totals measured from 1 to 2 inches, with locally heavier amounts approaching 4 
inches in areas of the Florida panhandle and south Georgia.  Lower than expected yields were 
reported in fields that were impacted by Hurricane Michael.  Some fields remained too soggy 
to retrieve modules.  Pressing operations had slowed at some gins as they waited for modules 
to accumulate on gin yards and some modules were too wet to gin.  According to the National 
Agricultural Statistics Services (NASS) Crop Progress report released November 5, cotton 
harvested reached 66 percent in Alabama and 53 percent in Georgia. 
     
Damp conditions delayed harvesting and fieldwork in portions of the Carolinas and Virginia 
during the period as some fields remained inaccessible and soggy, due to wet weather received 
recently.  Early morning fog also delayed fieldwork in some locales.  Harvesting continued 
at a good pace in areas where ideal weather was observed and soils were firm enough to support 
equipment.  Producers raced to get as much fiber off of the stalk as possible ahead of wet 
weather forecast in the near term.  According to NASS, cotton harvested reached 66 percent 
in Virginia, 61 in North Carolina, and 43 percent in South Carolina. 
 
Textile Mill 

Demand was light for color 41, leaf 4, and staple 34 for first and second quarter delivery.  
No sales were reported.  Most mills have covered their raw cotton needs through the end of 2018.  
Yarn demand was moderate.  Most mills operated five to seven days.   
     
Demand through export channels was moderate.  Demand throughout the Far East was good for any 
discounted styles of cotton.  
     
Trading 
 
..No trading activity was reported. 


South  Central Markets Regional Summary 


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

Harvesting advanced slowly most of the week, due to another storm that brought heavy rain showers 
throughout the region. Local experts reported nearly 2 inches of precipitation in most places, 
with up to 4 inches recorded in localized places.  Daytime highs fluctuated from the 50s to 60s. 
Overnight lows were in the 40s and 50s.  Outdoor activities were delayed in the remaining unharvested 
fields.  Minor flash flooding was reported.  Widespread re-growth was reported in previously 
defoliated fields.  Some producers opted for a second application of defoliant; most were harvesting 
slowly under less than optimal conditions. Producers have reported good yields, but a decline in 
several quality factors, especially color. Most gins maintained pressing operations without any weather 
related interruptions; some gins reported delays processing wet modules.  According to the National 
Agricultural Statistics Services Crop Progress report released November 5, harvesting advanced 
slowly to 91 percent in Arkansas, 92 in Missouri, and 78 percent in Tennessee.   
 
South Delta 

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

Harvesting advanced slowly during the period.  A storm front brought more rain to the region early in 
the week. Up to 2 inches of moisture was reported in localized places in Mississippi. Daytime highs 
dropped into the 60s and 70s. Overnight lows were in the 50s in most areas.  A cold front is expected 
to bring freezing temperatures in the near term.  Field activities have been severely hampered this 
harvest season as a result of persistent, inclement weather.  Overall quality of the crop has suffered, 
but most producers have reported average to above average yields.  Harvesting is winding down and many 
producers have completed their operations. According to the National Agricultural Statistics Services 
Crop Progress report released November 5, harvesting had reached 89 percent in Louisiana and 85 
percent in Mississippi.   
 
Trading 
 
North Delta 
..
A light volume of color mostly 42, leaf 4 and better, staple 35, mike averaging 45.3, strength 
averaging 29.6, and uniformity averaging 80.5 traded at around 72.00 cents per pound, FOB car/truck 
(Rule 5, compression charges paid). 

South Delta 
..
No trading activity was reported. 


Southwestern Markets Regional Summary


East Texas 

Spot cotton trading was moderate.  Supplies and producer offerings were light.  Demand was 
moderate.  Average local spot prices were higher.  Producer interest in forward contracting 
was light.  Trading of CCC-loan equities was inactive.  Foreign inquiries were light.  
Interest was best from Bangladesh, Korea, and Turkey.   

Intermittent, beneficial rainfall was received in some locations of south Texas.  Harvesting 
was interrupted.  Some gins in the Upper Coast were waiting for modules to be delivered.  Rainy 
conditions continued in the Blackland Prairies and fieldwork was at a standstill.  Some gins 
had caught up to the backlog of modules on the yards, and experienced downtime.  Gin personnel 
reported difficulty in processing the modules.  In Kansas, harvesting was at 8 percent, lagging 
behind last years 16, with a five-year average of 19 percent, according the National Agricultural 
Statistics Services (NASS) Crop Progress report released on November 5.  In Oklahoma, cotton 
harvested had reached 28 percent, down from 39 last year, with a five-year average of 38 percent.  
In Kansas and Oklahoma, the condition of the crop was rated mostly fair-to-good. Topsoil and 
subsoil moisture supplies were mostly adequate-to-surplus, according to NASS. 
  
West Texas 

Spot cotton trading was moderate.  Supplies and producer offerings were moderate.  Demand was 
moderate.  Average local spot prices were higher.  Producer interest in forward contracting was 
light.  Trading of CCC-loan equities was inactive.  Foreign inquiries were light.  Interest was 
best from Bangladesh, Korea, and Turkey.   

Mostly sunny, windy conditions prevailed, which helped dry fields and blow leaves from the plants.  
Fieldwork was active early in the reporting period, and a significant number of modules are in 
the fields.  Most gins were operating and added night shifts.  Local reports indicated that 
the crop contains higher quality compared to last season, and that the gins are able to process 
the bales faster.  A cold front moved into the territory on November 7 and 8, bringing cooler 
temperatures and light rain.  All field activities were halted.  Producers were anxious 
to finish harvesting this crop, but conditions were too wet late in the reporting period. Daytime 
temperature highs were in the low 40s to mid-70s, and overnight temperature lows were in the 
upper 20s to mid-40s.  The Abilene, Lamesa, and Lubbock Classing Office receipts have increased.  
Shifts were expanded, and weekend shifts added to keep pace with the workload.          

Trading 
 
East Texas 
..
In Texas, a mixed lot containing a moderate volume of mostly color 23 and better, leaf 4 and 
better, staple 33-36, mike 40-46, strength 26-35, and uniformity 78-82 sold for around 70.00 
cents per pound, FOB  warehouse (compression charges not paid).    
..
A light volume of color 12 and 22, leaf mostly 3, staple 34 and 35, mike 43-46, strength 
averaging 30.4, and uniformity averaging 81.2 sold for around 68.50 cents, same terms as above.   
..
In Oklahoma, a light volume of color 42 and better, leaf mostly 5, staple 35 and 36, mike 31-38, 
strength  30-32, uniformity 79-81, and 75 percent extraneous matter sold for around 65.00 cents, 
FOB car/truck (compression charges not paid).    

West Texas 
..
A light volume of color 41, leaf 3 and 4, staple 37 and 38, mike averaging 43.4, strength 30-33, and       
uniformity 80-82 sold for around 74.25 cents per pound, FOB car/truck (compression charges not paid).   
..
A moderate volume of mostly color 42 and better, leaf 5 and better, staple 37 and 38, mike 42-49, 
strength 31-35, and uniformity 80-83 sold for around 71.00 cents, same terms as above. 


Western Markets Regional Summary    


Desert Southwest (DSW) 

Spot cotton trading was moderate.  Supplies were moderate.  Demand was light.  Producers offered a 
heavy volume of 2018-crop cotton.  Producers delivered previously contracted cotton or delivered 
to merchant and cooperative marketing pools.  Average local spot prices were higher.  No forward 
contracting or domestic mill activity was reported.   

Temperatures were in the 70s and 80s in Arizona.  Harvesting and ginning continued uninterrupted.    
Overall, Arizona classing results look good, but some of the rain damaged cotton was classed as color 
41 and 51, with leaf 4 and 5.  Daytime high temperatures were mostly in the 70s for New Mexico 
and El Paso, TX.  Clear conditions allowed harvesting and ginning to gain momentum.     
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.  Producers delivered previously 
contracted cotton or delivered to merchant and cooperative marketing pools.  Average local spot 
prices were higher.  No forward contracting or domestic mill activity was reported.  Merchant 
offerings and foreign mill inquiries were light.       
     
Harvesting and ginning continued uninterrupted.  Modules were hauled to gin yards.  Shippers were busy 
hosting international mill groups prior to the USA Sourcing Summit.  The Visalia Classing Office was 
busy with FFA cotton judging team tours early in the reporting period. 
 
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.  Interest was best for 2017-crop cotton.  Shippers reported sales for China and India.   
     
Daytime high temperatures were in the 70s and 80s for the Far West.  Harvesting and ginning 
continued uninterrupted.  Some second pick harvesting was done in the San Joaquin Valley (SJV) 
of California.  Yields were very good and in some cases above the SJV average.  Shippers were 
busy hosting international mill groups prior to the USA Sourcing Summit.  The Visalia Classing 
Office was busy with FFA cotton judging team tours early in the reporting period. 

Trading 
 
Desert Southwest 
..
A heavy volume of 2018-crop mostly color 11 and 21, leaf 2 and better, staple 36 and longer, mike         
averaging 45.0, strength averaging 30.87, and uniformity averaging 81.86 sold for around 78.00 
cents per pound, uncompressed FOB warehouse.   

San Joaquin Valley 
..No trading activity was reported. 

American Pima 
..No trading activity was reported. 



USDA ANNOUNCES SPECIAL IMPORT QUOTA #3 
FOR UPLAND COTTON 
November 8, 2018 


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 November 15, 2018, allowing importation of 
12,807,185 kilograms (58,822 bales) of upland cotton.  

     
Quota number 3 will be established as of November 15, 2018, and will apply to upland cotton 
purchased not later than February 12, 2019, and entered into the U.S. not later than May 13, 2019. 
The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted 
average rate for the period June 2018 through August 2018, 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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