Mp_cn206 May 10, 2024 Weekly Cotton Market Review Spot quotations averaged 34 points 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 70.01 cents per pound for the week ending Thursday, May 9, 2024. The weekly average was down from 70.35 cents last week and from 78.47 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 68.81 cents Monday, May 6 to a high of 71.81 cents Wednesday, May 8. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 9 totaled 4 bales. This compares to 2,079 bales reported last week and 26,390 bales reported the corresponding week a year ago. Total spot transactions for the season were 816,120 bales compared to 633,689 bales the corresponding week a year ago. The ICE July settlement price ended the week at 78.60 cents, compared to 75.62 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 weak. Trading of CCC-loan equities was inactive. Mostly cloudy skies were observed across the lower Southeast during the period. Seasonably warm and humid conditions prevailed with daytime high temperatures in the 80s. Nighttime lows were in the 60s and 70s. Scattered thundershowers brought moderate precipitation to areas across the region, with severe storms moved through Alabama, the Florida Panhandle, and Georgia late week. Tornado watches were issued and damaging winds were reported in some areas. Accumulated precipitation totals measured from trace amounts to around 3 inches of moisture. Fieldwork and outside activities were delayed in areas where soils were too soggy to support equipment. Producers welcomed the rainfall, which helped to fortify subsoil moisture in areas where dry conditions persisted. Mostly cloudy to overcast conditions were observed across the upper Southeast during the period. Daytime high temperatures were in the 80s and 90s. Nighttime lows were in the 60s. Light to moderate precipitation was received with severe storms moved across the region late in the week. Tornado watches were issued and damaging winds were reported in some areas. Weekly accumulated precipitation totals measured 1 to 3 inches in cotton growing areas of the eastern Carolinas and Virginia. Fieldwork was interrupted due to soggy fields, but planting progressed ahead of the wet weather and producers welcomed the moisture, which helped alleviate dry conditions. Textile Mill Domestic mill buyers inquired for a moderate volume of color 42 and 51, leaf 5 and better, and staple 32 and longer for September/October delivery. No sales were reported. No additional inquiries were reported. Mill buyers maintained a cautious undertone. Production schedules were reduced at some mills to limit building yarn inventories. Demand through export channels was moderate.Agents throughout the Far East inquired for any discounted styles of cotton. No sales were reported. Trading • No trading activity was reported. South Central Markets Regional Summary North Delta Trading of spot cotton and CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were weak. No forward contracting was reported. The weather pattern of partly cloudy conditions with light precipitation persisted during most of the period. Severe weather moved through the region late week, bringing the threat of tornados, strong winds, and torrential rainfall to parts of the territory. More than 3 inches of moisture was reported in most areas. Daytime temperatures were in the upper 80s. Overnight lows were in the 60s and 70s, slightly above average for this time of the year. Local experts reported that saturated soils hindered outdoor activities in a few locales all through the week, but gusty winds and high temperatures helped to dry soils. According to the National Agricultural Statistics Service’s Crop Progress report released on May 6, planting advanced rapidly to 30 percent in Arkansas, 34 in Missouri, and 16 percent in Tennessee. All of these figures were well ahead of the five year average. Fieldwork was accomplished in areas where soils were firm enough to support equipment and planting gained momentum. The U.S. Drought monitor reported that scattered rain showers in Tennessee led to small-scale improvements in some areas of moderate drought and abnormal dryness, but conditions deteriorated in places that the storms skipped. Virtual and in-person industry meetings were being planned and attended at state and national levels. South Delta Spot cotton trading was inactive. Trading of CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were weak. No forward contracting was reported. Partly cloudy conditions with light precipitation dominated the weather pattern throughout most of the report period. Up to 2 inches of moisture was reported in most areas. Daytime temperatures were in the upper 80s. Overnight lows were in the 60s and 70s. River flood warnings remained in effect in many areas. Local experts reported that saturated soils prevented producers from engaging in outdoor activities in a few locales. Fieldwork, including the application of fertilizers and burndown chemicals, was accomplished in areas where soils were firm enough to support equipment. According to the National Agricultural Statistics Service’s Crop Progress report released on May 6, planting advanced to 30 percent in Louisiana and 32 percent in Mississippi. Mississippi was well ahead of the five year average and planting advanced normally under good conditions. Local experts in Louisiana reported that final acreage numbers were hard to pin down due to prevented corn planting, unavailability of specific seed varieties, and frequent rain showers. Virtual and in-person industry meetings were being planned and attended at state and national levels. Trading North Delta • No trading activity was reported. South Delta • No trading activity was reported. Southwestern Markets Regional Summary East Texas-South Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were weak. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Pakistan, and Taiwan. Large storm systems brought powerful thunderstorms that produced large amounts of precipitation and flooding in East Texas. Daytime high temperatures were in the upper 70s and the mid-to-upper 80s, with nighttime temperature lows in the mid-to-upper 60s. Total rainfall accumulations ranged from nearly 4 to 6 inches of moisture. Planting activities were slowed by standing water and over saturated soil that prevented equipment from moving through the fields. Earlier planted cotton fields were in good condition. Replanting may be necessary due to soggy field conditions and high winds. According to local experts, thrip populations should be monitored and treated as needed. In South Texas, predominately sunny skies with partial cloud coverage was observed in the Rio Grande Valley (RGV), the Coastal Bend, and the Upper Coast. Daytime temperatures in the Upper Coast and Coastal Bend climbed into the high 80s to the mid-90s and soared into the triple digits in the RGV. Nighttime temperature lows were in the mid-to-upper 70s. Timely rainfall would be beneficial to help the planted crop progress and to prevent soils from drying out in the hot temperatures in South Texas. Cotton was blooming in the Coastal Bend. Pest pressure from Fleahoppers and Thrips was noted, and treatments were applied. West Texas-Kansas-Oklahoma Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were weak. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Pakistan, and Taiwan. In Texas, planting expanded in the Northern High Plains, but was interrupted by beneficial rainfall with daytime high temperatures in the low 60s to low 90s and overnight low temperatures in the 40s to 60s. Some producers opted to wait for warmer soil temperatures before sowing. Soils quickly firmed under windy conditions. Several Red Flag Warnings and Fire Weather Watches were issued. During periods of calm wind, fieldwork was active in the High Plains and Rolling Plains. Fields were clean and weed free ahead of planting. In Kansas, one to three and one-half inches of rainfall was received with daytime high temperatures in the mid-60s to mid-80s. Planting was underway at some locations that had drier ground, but seeding was delayed from recent rainfall that had left fields soggy in the eastern counties. Producers were motivated to put seed in the ground ahead of the May 31 planting deadline for full insurance coverage. Cotton planted was at 4 percent, near 2 percent last season at this time, and near 6 percent for the five year average, according to the National Agricultural Statistics Service’s Crop Progress report released on May 6. In Oklahoma, planting season arrived, but some locations were too cool and wet to initiate putting seed in the ground. The soils firmed and warmed mid-week with warmer daytime high temperatures reaching into the upper 80s. Overnight temperature lows were in the 50s to 70s. Planting was initiated at a few locations that had reached desirable outside conditions and was expected to expand in the next reporting period under sunny skies. Early planted stands had begun to emerge. Trading East Texas-South Texas • No trading activity was reported. West Texas-Kansas-Oklahoma • In Kansas, a lot containing a light volume of color 52 and 53, leaf 5 and 6, staple 35, mike averaging 38.0, strength averaging 31.6, uniformity averaging 80.2, and 50 percent extraneous matter sold for around 58.00 cents per pound, FOB car/truck (compression charges not paid). Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were weak. Foreign mill inquiries were light. In Arizona, weather conditions were sunny and breezy. Daily temperatures were in the 80s and 90s with overnight lows in the 50s and 60s. Planting continued and was nearing completion in central Arizona. In Yuma, AZ the crop made good progress. Crop conditions were rated excellent to good according to the National Agricultural Statistics Service’s (NASS) Arizona’s Crop Progress report released on May 5. In New Mexico and El Paso, TX daily temperatures were in the 70s and 80s, under windy conditions with overnight lows ranging from the 40s to 60s. According to NASS, in New Mexico 40 percent of the crop has been planted and 10 percent emerged. No rain was recorded in the period. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill activity was reported. Average local spot prices were weak. Foreign mill inquiries were light. Temperatures at the beginning of the reporting period were cool with daytime highs in the 60s to upper 70s and nightly lows in the 40s and 50s. Cloudy skies produced up to one-half of an inch of rain in the area. Later in the period temperatures warmed into the 90s under sunny conditions. Cotton planting continued and emerged plants progressed well. The California Department of Water Resources reported an increase in groundwater for the first time in four years for the 2023 water year. The increase was made possible through a more fervent effort to capture and utilize floodwaters and water from the melting snowpack. Some farmers have noted a recovery of wells and have hopes that reins will be loosened when it comes to the amount of groundwater they can use. American Pima (AP) Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were steady. Foreign mill inquiries were light. Interest was best from China. According to the Foreign Agricultural Service U.S. Export Sales report 304,800 bales of 2023-crop American Pima was committed to export for week ending May 2. This compares to 297,700 bales at this same time last year. In the San Joaquin Valley temperatures at the beginning of the period were cool but warmed into the 90 by weeks end under sunny skies. Precipitation accumulations were around one-half of an inch. Plants that have emerged are up to a good stand. Overall, the crop progressed well. The California Department of Water Resources reported an increase in groundwater for the first time in four years for the 2023 water year. The increase was made possible through a more fervent effort to capture and utilize floodwaters and water from the melting snowpack. Some farmers have noted a recovery of wells and have hopes that reins will be loosened when it comes to the amount of groundwater they can use. In Arizona, plants were emerging and planting continued in New Mexico and Texas. 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 #4 FOR UPLAND COTTON May 9, 2024 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 May 16, 2024, allowing importation of 7,680,747 kilograms (35,277 bales of 480-lbs) of upland cotton. Quota number 4 will be established as of May 16, 2024, and will apply to upland cotton purchased not later than August 13, 2024, and entered into the U.S. not later than November 11, 2024. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period January 2024 through March 2024, the most recent three months for which data are available. Future quotas, in addition to the quantity announced today, will be established if price conditions warrant.