USDA Weekly Cotton



Mp_cn812 
August 16, 2019 
Weekly Cotton Market Review  
 
 

Average spot quotations were 68 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 54.15 cents per pound for the week 
ending Thursday, August 15, 2019. The weekly average was up 
from 53.47 last week, but down from 79.34 cents reported the 
corresponding period a year ago. Daily average quotations ranged 
from a low of 52.85 cents Monday, August 12 to a high of 
54.98 cents Thursday, August 15. Spot transactions reported in 
the Daily Spot Cotton Quotations for the week ended August 15 
totaled 5,407 bales. This compares to 2,872 reported last week 
and 2,999 spot transactions reported the corresponding week a year 
ago. Total spot transactions for the season were 9,026 bales 
compared to 7,630 bales the corresponding week a year ago. The 
ICE October settlement price ended the week at 59.66 cents, 
compared to 59.54 cents last week. 


Southeastern Markets Regional Summary


Spot cotton trading was inactive.  Supplies and producer offerings 
were light.  Demand was light.  Average local spot prices were higher. 
Trading of CCC-loan equities was inactive. 
     
Fair to partly cloudy conditions dominated the weather pattern over the 
lower Southeastern region during the period.  Seasonably hot daytime 
temperatures were in the low to mid-90s, with overnight lows in the 
upper 70s to low 80s.    Moderate precipitation was received in areas 
throughout Alabama and the Florida Panhandle.  Weekly accumulated rainfall 
totals measured from 1 to 4 inches of moisture.  Portions of southeast 
Georgia received 1 to 2 inches of moisture, with lesser accumulations 
observed in central areas.  Cotton fields progressed well and were maturing 
rapidly under the intense heat.  Local experts reported that dryland fields 
varied in maturity, due to inconsistent rainfall patterns in recent weeks.  
Bolls were cracking open in the earliest-planted fields and producers were 
beginning to think about defoliation options.  In younger fields, plant 
growth regulators continued to be applied as well as treatments for stink 
bugs.  Plant bugs were reported in north Alabama, as well as spider mites 
in dry areas.  In Georgia, aphids were present in some fields and a few 
fields were treated for whiteflies. According to the National Agricultural 
Statistics Services (NASS) Crop Progress report released August 12, cotton 
bolls opening advanced to 9 percent in Georgia and 2 percent in Alabama. 
     
Fair to mostly sunny conditions were observed across the upper Southeastern 
region during the period.  Daytime high temperatures were in the upper 80s 
to low 90s, with nighttime lows in the upper 60s to low 70s.  Scattered 
thunderstorms brought moisture to areas of the central and coastal Carolinas            
and portions of Virginia. Weekly accumulated precipitation totals measured 
from 1 to 2 inches of moisture.  The beneficial moisture invigorated fields 
and the crop advanced under the hot conditions.  Local experts reported most 
fields were in the fifth to seventh week of bloom, and many locations were 
approaching cut-out.  Producers continued to scout fields and made treatments 
for isolated infestations of bollworms, plant bugs, and stink bugs.  
According to NASS, boll-setting reached 91 percent in North Carolina, 86 in 
South Carolina, and 78 percent in Virginia; cotton bolls opening was 1 percent 
in the Carolinas.   
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and 
staple 36 for nearby delivery.  Mill buyers also inquired for a moderate volume 
of color 41, leaf 4, and staple 35 and longer for January through October 2020 
delivery. No sales were reported.  Most mills have covered their raw cotton needs 
through fourth quarter 2019.  Demand for    open-end and ring-spun yarn was moderate.   
     
Demand through export channels was moderate.  Indonesian mill buyers inquired for 
a moderate volume of recaps containing color mostly 41, leaf 4, and staple 35 and 
longer for nearby shipment.  No sales were reported.   

Trading 
..
No trading activity was reported. 


South Central Markets Regional Summary
 

North Delta 

Spot cotton trading was slow.  Supplies of available cotton and demand were light.  
Average local spot prices were higher.  Trading of CCC-loan equities was inactive.  
No forward contracting was reported as cotton prices remained low.   

Extreme heat dominated the weather pattern during the week.  Daytime highs were 
in the mid-90s, but the heat index soared as high as 115 degrees in parts of the 
Memphis territory.  Although overnight lows settled in the low 70s, the heat was 
slow to dissipate during the evening hours. The National Weather Service maintained 
heat advisories for many communities.  All residents were advised to spend as little 
time as possible in the heat and to limit or avoid strenuous outdoor activities 
altogether. Scattered showers brought up to 2 inch of rain to parts of the region; 
spectacular displays of heat lightning were observed in several areas, with power 
outages reported in localized places.  The crop made progress under hot and mostly 
dry growing conditions.  Irrigation continued as necessary to maintain soil moisture 
levels, due to high evapotranspiration rates in areas without rainfall; dryland crops 
which received precipitation greatly benefitted from the additional moisture. Producers 
reported that more fields had reached cut-out and no longer require further inputs to 
protect yields.  Late-planted fields were plagued by high populations of bollworms 
and plant bugs. Treatments were required to control infestations. Some producers reported 
late-season weed control problems as a direct result of excess and/or untimely rainfall 
during the growing season. According to the National Agricultural Statistics Services 
Crop Progress report released August 12, boll opening advanced to 3 percent in Arkansas 
and Tennessee; crop development in Missouri continued to lag at least two weeks behind 
the five-year average.   
 
South Delta 

Spot cotton trading was inactive. Supplies of available cotton and demand were light.  
Average local spot prices were higher.  Trading of CCC-loan equities was inactive. 
No forward contracting was reported as cotton prices remained low. 

Scorching daytime temperatures were experienced during the week.  Daytime highs were 
in the upper 90s, with the heat index in the 110s and overnight lows in the upper 
70s.  The National Weather Service maintained heat advisories for many places.  
Scattered showers brought up to 1 inch of rain to most of the region.  Late-planted 
fields were irrigated wherever possible to maintain good moisture conditions.  
Some boll shed was reported in a few fields due to excessive heat.  The crop continued 
to advance under hot and mostly dry conditions.  Crop advisors reported that as a 
result of poor control in some varieties, bollworms were feeding on mature bolls 
deep in the canopy, which complicated further attempts to eliminate infestations. 
Populations of spider mites were easily controlled in dry fields.  Many fields 
had reached cut-out and bolls were beginning to open.  According to the National 
Agricultural Statistics Services Crop Progress report released August 12, 
boll opening reached 18 percent in Louisiana and 3 percent in Mississippi.  
The figure for Louisiana was near the five-year average, while Mississippi 
lagged about one week behind.   
 
Trading 
  
North Delta 
..
A light volume of mostly color 41 and 42, leaf 5 and better, staple 36 and 
longer, mike 44-53, strength 29-34, and uniformity 80-83 traded for around 
60.50 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 slow.  Supplies and producer offerings were light. 
Demand was light.  Average local spot prices were higher.  Producer interest 
in forward contracting was light.  Trading of CCC-loan equities was slow.  
Foreign inquiries were light, but moderate for new-crop.   
     
Harvesting expanded on dryland acres in the Rio Grande Valley (RGV) and a 
few irrigated fields have been harvested. Harvesting was 50 percent completed, 
according to local sources.  Water was applied to some of the irrigated fields.  
Not all of the gins in the RGV have begun operations.  In the Coastal Bend, 
defoliants were applied on some fields and harvesting had reached 25 percent 
completed, according to local experts.  Fields were treated for boll weevils in 
Zavala County.  The warehouses were busy receiving bales and were anxious to ship, 
but orders were lacking.  Securing enough warehouse space to store the 2019-crop 
was a concern.  Some space was occupied with 2018-crop bales. Bolls had begun to 
pop open in the northern Blackland Prairies.  Producers were expected to begin 
applying defoliants after harvesting corn.  Light showers brought some moisture 
to localized areas.  Most areas received more than 1 inch of precipitation in 
Kansas that helped the crop.  Dryland was blooming out of the top of the plant.  
Most of the stands have caught up, but the later planted irrigated fields remained 
two weeks behind schedule.  In Oklahoma, the crop in the southwestern counties 
benefitted from recent rainfall.  Most fields neared cut-out.  Monitoring continued for plant pests.   
 
West Texas 

Spot cotton trading was slow.  Supplies and producer offerings were light.  
Demand was light.  Average local spot prices were higher.  Producer interest 
in forward contracting was light.  Trading of CCC-loan equities was inactive.  
Foreign inquiries were light. 
     
Blooming was underway with daytime high temperatures in the upper 90s to low 100s, 
and overnight lows in the mid-60s to low 80s.  Hot, dry conditions prevailed during 
the period.  Irrigation water was applied.  Some areas mostly in the Panhandle 
received a few rain showers, but the dryland crop needs more moisture.  Many counties 
reached the last effective bloom date during the reporting period.  This is a critical 
time for the plants to receive rainfall or irrigation moisture. Some dryland fields 
passed that point and have begun to lose yield, according to industry experts.  Heavier 
than normal insect populations were treated.  Hoe crews manually removed weeds from 
the fields.  Cultivation was ongoing.              

Trading 
 
East Texas 
..
In Oklahoma, a mixed lot containing a light volume of mostly color 41 and 51, 
leaf 4 and 5, staple 33 and 34, mike 38-48, strength 28-30, and uniformity 78-80 
sold for around 51.00 cents per pound, FOB car/truck (compression charges not paid). 
..
A mixed lot containing a light volume of mostly color 21, leaf 2 and 3, staple 35 
and longer, mike 30-35, strength 27-30, and uniformity 76-80 sold for around 50.50 cents, 
same terms as above.  
..
A light volume of CCC-loan equities traded for around 8.75 cents. 

West Texas 
..
A mixed lot containing a light volume of mostly color 21 and 31, leaf 3 and 4, 
staple 35 and longer, mike averaging 33.8, strength averaging 31.5, and uniformity 
averaging 80.1 sold for around 52.50 cents per pound, FOB car/truck (compression charges not paid).   
..
A light volume of mostly color 31 and 41, leaf 4 and 5, staple 37, mike 29-36, 
strength 32-36, and uniformity 78-82 sold for around 51.00 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 higher.  Producers were offered new-crop 
contracts, but none were signed as the ICE December futures market remained 
under 70 cents.  No domestic mill activity was reported. Foreign mill 
inquiries were light.  Demand for 2019-crop was good from mills, who 
traditionally purchase Far West cotton.    
     
Excessive heat warnings were issued as temperatures rose to the mid-110s in 
Arizona late in the period.  No rainfall was recorded.  Heat stress was 
prevalent in the past two weeks.  Producers continued to irrigate their 
crop to provide relief to the plants.  Boll-setting advanced in central 
Arizona and Safford.  Bolls were cracking open in Yuma. Defoliation activities 
increased.  Local sources reported ginning would begin around the second week 
of September.  Temperatures were in the high 90s to low 100s in New Mexico and 
El Paso, TX.  Monsoon moisture deposited around one-third of an inch mid-week.  
The crop made good progress.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.    
Average local spot prices were higher.  No forward contracting or domestic 
mill activity was reported.   Foreign mill inquiries were light.   Interest 
for 2019-crop cotton was steady from mills, who use roller-ginned Upland in their laydowns.   
     
After a brief 3-day respite, triple-digit temperatures returned mid-week.  
Excessive heat warnings were in place as temperatures rose to the high 100s. 
Daylight hours were waning.  Boll-setting advanced. The crop continues to make 
good progress.  Local industry experts encouraged producers to remain vigilant 
in monitoring fields and removing plastic contaminates prior to harvest.  Producers 
and pest control advisors made field sweeps to check and control late season pests.  
Gins readied equipment for ginning.  Producers attended annual meetings.   
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies of 2018-crop cotton 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. 
Merchants continued to offer 2018-crop cotton.   
     
Hot, dry temperatures in the region pushed the crop to completion.  Rainfall was 
recorded for New Mexico and El Paso, TX.  Around one-third of an inch of moisture was 
received mid-week.  Defoliation was active in Yuma, AZ. Boll-setting was good 
throughout the Far West.  Far West producers were busy irrigating and monitoring 
for late season pests.  Some whitefly was found but remained under the threshold for 
treatment.  Industry experts encouraged producers to remain vigilant in checking 
fields and removing plastic contaminates prior to harvest.   

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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