July 26, 2024 Mp_cn206 Weekly Cotton Market Review Spot quotations averaged 172 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 60.79 cents per pound for the week ending Thursday, July 25, 2024. The weekly average was down from 62.51 cents last week and from 81.79 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 62.45 cents Monday, July 22 to season low of 59.33 cents Wednesday, July 24. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 25 totaled 65 bales. This compares to 649 reported last week and 12,456 bales reported the corresponding week a year ago. Total spot transactions for the season were at 835,648 bales compared to 775,610 bales the corresponding week a year ago. The ICE Oct settlement price ended the week at 67.21 cents, compared to 71.37 cents last week. Southeastern Markets Regional Summary Spot cotton trading was inactive. Supplies and producers offerings were light. Demand was moderate. Average local spot prices were lower. Trading of CCC-loan equities was inactive. Mostly cloudy conditions were observed across the lower Southeast during the period. Daytime temperatures were in the 80s and low 90s with nighttime lows in the 70s. Widespread thunderstorms brought rainfall to areas throughout Alabama, the Florida Panhandle, and Georgia. Weekly accumulated precipitation totals measured one to four inches with locally heavier accumulations recorded in some locales. Drought reductions and soil moisture improvements were recorded in areas, according to the U.S. Drought Monitor. The precipitation invigorated drought-stressed fields. The wet conditions delayed herbicide and insecticide applications. Aphid and armyworm pressure was reported in areas of Georgia. Squaring neared completion in many places and boll-setting advanced at a good pace. Cloudy conditions prevailed across the upper Southeast with daytime high temperatures in the 90s moderating into the 80s as the week progressed. Nighttime lows were in the 70s. Widespread thunder showers brought moisture to areas across the region during the period. Weekly accumulated rainfall totals measured one to four inches with heavier accumulations recorded in some localized areas. The crop benefitted from the moisture which helped alleviate droughty conditions. Despite the rainfall, moderate to severe drought persisted in areas of the eastern Carolinas, according to the U.S. Drought Monitor. Fieldwork advanced where soils were firm enough to support equipment. Boll-setting and squaring advanced. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41 and better, leaf 4 and better, and staple 34 for fourth quarter 2024 delivery. No sales were reported and no additional inquiries were reported. The undertone from mill buyers remained cautious as they balanced production schedules with yarn orders. 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 Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Daytime high temperatures were in the 80s. Nighttime low temperatures were in the 70s. Considerable cloudiness with occasional rain showers prevailed throughout the reporting period. Rain showers moved through the territory bringing from trace amounts to over five inches of beneficial rainfall to some areas. Insect pressure was light. Herbicides were applied as needed to control weed growth where soils were firm enough to support equipment. Stands progressed and varied from squaring to blooming, while cotton setting bolls continued to mature. According to the National Agricultural Statistics Service’s Crop Progress report released on July 22, cotton setting bolls had reached 70 percent in Arkansas, 18 in Missouri, and 52 percent in Tennessee. The Southern Cotton Ginners Association annual Tennessee district meetings for the North Delta was held in Jackson on Thursday, July 22. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Daytime high temperatures started the week in the mid-80s, climbed into the low 90s, and then dropped into the upper 70s by the end of the report period. Nighttime low temperature were in the low 70s. Steady rain showers were prevalent throughout the reporting period. Scattered rain moved through the region bringing from trace amounts to over two and a half inches of precipitation. More rain is needed to obtain adequate soil moisture. According to the U.S. Drought Monitor Report released on July 25, abnormally dry to moderate drought persisted across crop areas in northern Mississippi. Fieldwork was being done. Insect pressure was light. Local experts reported that cotton is blooming and maturing the way it should. According to the National Agricultural Statistics Service’s Crop Progress report released on July 22, cotton setting bolls expanded from 40 percent last week to 60 in Louisiana and from 35 to 53 percent in Mississippi. Trading North Delta • A light volume of color 31 and better, leaf 2 and 3, staple averaging 36, mike averaging 43.8, strength averaging 30.7, and uniformity averaging 81.6 sold for around 76.75 cents per pound, Rule 5, compression charges paid. 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 lower. 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 East Texas, overcast skies and wet conditions dominated the weather pattern. Daytime high temperatures were in the mid-80s and the low-to-mid 90s, with nighttime low temperatures in the mid-70s. Precipitation totals ranged from trace amounts to over four and three-quarters of an inch of rain. No immediate pest pressure was reported. Producers irrigated fields early in the period. Stands were from middle to peak bloom in many fields. In South Texas, widespread rain showers resulted in harvest delays in the Coastal Bend and Rio Grande Valley (RGV). Daytime high temperatures were in the 80s and the mid-to-upper 90s, with overnight temperature lows in the mid-to-upper 70s. Storms produced from trace amounts of moisture to over four and three-quarters of an inch of untimely rain with more chances in the forecast for the coming days. Prior to rainfall, producers had made good progress harvesting fields, and worked around the storms as much as possible trying to find areas dry enough to pick. A period of sunny and dry weather conditions are needed to help stands dry out where bolls were open and prevent quality loss. Gins were running, and many gins were operating two-shifts. Gin yards were beginning to fill up in the Coastal Bend and RGV. West Texas-Kansas-Oklahoma 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 moderate. Interest was best from China, Pakistan, and Taiwan. In Texas, a mild cold front brought light to moderate rainfall to some locations. The milder temperatures encouraged fruit development and vigor. Daytime high temperatures were in the upper 70s to upper 90s. Nighttime low temperatures were in the 60s and 70s. Progress varied from squaring to peak bloom. Irrigation was activated if available. Fertilizer was applied. Vegetative growth was controlled through plant growth regulator treatments. Insect pressure was light but monitoring focused on lygus and cotton aphids. Most stands have matured past the fleahopper vulnerability stage now that the crop is flowering. Hoe crews manually removed weeds and some fields were sprayed or cultivated. In Kansas, stands began to bloom with daytime high temperatures in the mid-80s to mid-90s. Overnight lows were in the 60s. Mostly beneficial rainfall was received with heavier amounts of precipitation in South Central Kansas. A chance for more precipitation was in the forecast. Most wells remained shut down because of adequate soil moisture. Wind and hail damaged some stands, and a few acres were a declared a total loss. Producers were optimistic since all varieties advanced, including dryland fields. In Oklahoma, widespread rain showers brought one and one-half to two and one-half inches of moisture. Gusty winds and hail during the storms caused damage in some fields. The precipitation was beneficial, but all locations need more rain. The irrigation district remains undecided if water will be released for crops this season. Cotton stands advanced. Producers continued spraying and cultivating to control weeds. Insect pressure was light. Trading East Texas-South Texas • No trading activity was reported. West Texas, Kansas & Oklahoma • No trading activity was reported. 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 lower. Foreign mill inquiries were light. Daily temperatures in Arizona were in the lower 100s to upper 110s. Overnight lows were in the 70s. In Phoenix, triple-digit temperatures have been recorded for 60 consecutive days, with no end in sight. Excessive heat warnings were issued. Monsoon activity was prevalent throughout the area producing scattered showers, wind, and dust storms. Rainfall accumulations totaled almost one-quarter of an inch. Insect pressures were light. According to the National Agricultural Statistics Service’s Crop Progress report released on July 22, boll-setting was at 88 percent and crop conditions were mostly good. In New Mexico and El Paso, TX, conditions were partly cloudy. Temperatures were mild with daytime highs in the 80s and 90s and overnight lows in the 60s and 70s. Rain showers brought precipitation measuring up to one and one-quarter inches to some locales. The cooler temperatures along with the rainfall helped lighten the pressure on irrigation systems. No significant insect pressures were reported. The overall crop outlook was good. 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 lower. Foreign mill inquiries were light. Throughout the SJV, daily temperatures were in the triple digits. Overnight lows were in the 70s and 80s. Excessive heat warnings were issued. No rain was reported in the period. Growers are staying ahead of the heat with adequate irrigation waters. Fields continue to be treated as needed for lygus. Boll-setting advanced, and the crop was in mostly good condition. American Pima (AP) Spot cotton trading was slow. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were lower. Industry continues to be concerned with the decline in market prices. Foreign mill inquiries were light. Interest was best from India. In the San Joaquin Valley, daily temperatures were in the triple-digits, Excessive heat advisories were issued. No rain was reported in the period. Producers report that this will be an expensive crop with the cost of insecticide to control lygus pressures coupled with low market prices. Fields continue to be treated as needed for lygus. Boll-setting advanced, and the crop was in mostly good condition. In Arizona, monsoon activity brought scattered showers, wind, and dust storms. Beneficial rain accumulations totaled almost one-quarter of an inch. Insect pressures were light. The crop was in mostly good condition. In New Mexico and El Paso, TX, milder daytime temperatures were in the 80s and 90s, with nightly lows in the 60s and 70s. Beneficial rain was received during the period. Cooler temperatures, along with rainfall, helped lighten the pressure on irrigation systems. Fusarium wilt continues to be a concern in many fields. Extension agents have been working with producers to combat the situation. Trading Desert Southwest • No trading activity was reported. San Joaquin Valley • No trading activity was reported. American Pima • A light volume of cotton color 2, leaf 2, and staple 48 was sold. USDA ANNOUNCES SPECIAL IMPORT QUOTA #15 FOR UPLAND COTTON July 25, 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 August 2, 2024, allowing importation of 9,174,450 kilograms (42,137 bales of 480-lbs) of upland cotton. Quota number 15 will be established as of August 2, 2024, and will apply to upland cotton purchased not later than October 29, 2024, and entered into the U.S. not later than January 27, 2025. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period March 2024 through May 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.