Mp_cn812 May 20, 2022 Weekly Cotton Market Review Spot quotations averaged 358 points higher 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 142.30 cents per pound for the week ending Thursday, May 19, 2022. The weekly average was up from 138.72 cents last week and from 78.46 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 145.65 cents Monday, May 16 to a low of 139.47 cents Wednesday, May 18. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 19 totaled 2,398 bales. This compares to 581 reported last week and 1,135 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,614,560 bales compared to 1,361,552 bales the corresponding week a year ago. The ICE July settlement price ended the week at 147.70 cents, compared to 145.53 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. The COVID-19 Pandemic continues to disrupt labor availability and logistics, but cities and locales were easing COVID restrictions. Fair to partly cloudy conditions prevailed across the lower Southeast during the period. Seasonably warm daytime high temperatures were in the 80s to low 90s. Intermittent shower activity brought spotty moisture to areas throughout Alabama, the Florida Panhandle, and Georgia with the heaviest accumulations observed along the Gulf and Atlantic coastal areas. Weekly accumulated rainfall totals measured from trace amounts to around one and one-half inches of moisture. The warm temperatures enhanced seed germination, but thin stands were reported in some areas due to droughty conditions. Planting advanced, but was delayed in some areas as producers waited for additional moisture. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released May 16, planting advanced to 54 percent in Alabama and 39 percent in Georgia. Sunny to partly cloudy conditions were observed across the upper Southeast during the period. Daytime high temperatures were in the 80s to low 90s. Widespread thunderstorms brought moisture to cotton growing areas throughout the eastern Carolinas and Virginia. The rainfall helped contract droughty conditions in parts of North Carolina and Virginia, according to the U.S. Drought Monitor. Planting activity advanced at a good pace and seedlings were emerging. According to NASS, planting advanced to 48 percent in South Carolina, 47 in North Carolina, and 34 percent in Virginia. Textile Mill Domestic mill buyers purchased a moderate volume of 2022-crop cotton, color 41, leaf 4, and staple 35 and 36 for November through March 2023 delivery. Mill buyers also inquired for a moderate volume of 2022-crop cotton, color 42 and 51, leaf 5 and better, and staple 34 and longer for November through May 2023 delivery. No additional inquiries or sales were reported. Yarn demand remained good and mills continued to operate at capacity as allowed by labor availability. Mills continued to produce personal protective equipment for frontline workers and consumers. Demand through export channels was good. Indonesian mill buyers purchased a moderate volume of color 11 and 21, leaf 3 and better, and staple 35 and longer for June shipment. Agents for mills in India purchased a moderate volume of mixed lots containing color mostly 41 and 51, leaf 4 and better, and staple 34 and longer for June/July shipment. Trading • No trading activity was reported. South Central Markets Regional Summary North 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. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international marketing channels, domestic supply chains, and the labor force overall. Clear to partly cloudy weather prevailed during most of the week. Daytime high temperatures were in the 80s and 90s, slightly above seasonal averages. Overnight low temperatures were in the 60s and 70s. Severe weather brought high winds and some rain to the region. Accumulated moisture measured less than 1 inch in most areas, hindering field activities in a few places. Favorable weather conditions in other areas allowed planting to progress at a good rate. Many fields were germinating. According to the National Agricultural Statistics Service’s Crop Progress report, released on May 16, planting advanced to 53 percent complete in Arkansas, 47 in Missouri, and 49 percent in Tennessee. The figure for Tennessee was about ten days ahead of the five-year average. Virtual and in-person industry meetings were being planned and attended. 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. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international supply chains and the worldwide labor force. Partly cloudy skies, hot temperatures, and strong winds prevailed during the week. Daytime high temperatures were in the 90s. Overnight low temperatures were in the 60s and 70s. Favorable weather conditions in most areas allowed planting to progress at a good rate. Several producers reported delays, some due to excessively dry conditions, others due to rain showers, in their area. Isolated, heavy thunderstorms could result in the replanting of a few fields, or parts of fields, where freshly planted seeds were washed out. A localized hailstorm and blowing sand caused some damage to cotton seedlings in Franklin Parish, LA. According to the National Agricultural Statistics Service’s Crop Progress report, released on May 16, planting had reached 80 percent complete in Louisiana and 55 percent in Mississippi. The figures were two weeks ahead of the five-year average. Virtual and in-person industry meetings were being planned and attended. Many fields were up to a stand. 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 slow. Supplies and producer offerings were light. Demand was very light. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light and most active in India, Taiwan, and Peru. The COVID-19 Pandemic continued to cause labor shortages and global supply chain disruptions. Cotton began to bloom in the Rio Grande Valley with daytime highs in the low to upper 90s. Irrigated and dryland fields need a rain to help alleviate heat stress. Stands struggled under droughty conditions in the Coastal Bend and in the Upper Coast with daytime high temperatures in the 80s and 90s. A chance of rain is in the nearby forecast, but it’s too late for some fields that have been abandoned. Producers and industry experts continued to monitor for aphids, fleahoppers, and other insects that can rob plants of yield potential. Insecticide applications were applied where needed. Stands made good progress in the Blackland Prairies and in the Brazos River Bottoms. Development ranged from cotyledons to squaring. Recent rainfall encouraged weeds. Treatments were applied for thrips feeding on young plants. In Kansas, planting was interrupted from rainfall that brought up to one-half inch of moisture with daytime highs in the low 80s to mid-100s. Some producers neared the end of sowing. Sunny, windy conditions persisted. In Oklahoma, planting was underway with daytime highs in the upper 90s to mid-100s. Well water irrigation was active. A few stray showers brought a light amount of moisture to some locations, but was not widespread. More rain is needed. West Texas Spot cotton trading was moderate. Supplies were light. Producer offerings were light. Demand was very light. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest was best from India, Taiwan, and Peru. The COVID-19 Pandemic continued to cause shipping delays and supply chain disruptions. Global economic recovery was slow. Spotty rainfall was welcomed, but droughty conditions persisted for most fields with daytime temperatures in the upper 80s to upper 100s. Planting expanded in the Northern High Plains where the cotton insurance deadline is May 31. Some fields had emerged, but suffered from sandblasting. Wind gusts of more than 70 miles per hour were reported the evening of May 17. Planting was underway on the Southern High Plains and in some isolated areas in the Rolling Plains. Cotton planting began in the Edwards Plateau, and management decisions were being made on which crop to plant and how to manage irrigation water. Industry experts scouted for plant pests and treatments were applied for thrips and fleahoppers where necessary. Trading East Texas • In Kansas, lots containing a light volume of color 31 and 41, leaf 3 to 7, staple 33 and 34, mike 43-52, strength 29-34, and uniformity 79-82 sold for 120.00 to 129.75 cents per pound, FOB car/truck (compression charges not paid). • In Oklahoma, a mixed lot containing a moderate volume of color 44 and better, leaf 5 and better, staple 34, mike averaging 34.9, strength averaging 29.5, uniformity averaging 79.8, and 25 percent extraneous matter traded for around 123.00 cents, same terms as above. West Texas • An even-running lot containing a light volume of mostly color 31 and better, leaf 3 and better, staple 35, mike averaging 39.1, strength averaging 28.7, and uniformity averaging 79.4 sold for around 137.75 cents per pound, FOB car/truck (compression charges not paid). • Lots containing a moderate volume of color 31 and better, leaf 4 and better, staple 32 and 33, mike 30-43, strength 25-32, and uniformity 77-81 sold for around 134.00 cents, same terms as above. • A mixed lot containing a moderate volume of color 21 and 31, leaf 2 to 4, staple 33, mike averaging 33.1, strength averaging 29.8, and uniformity averaging 79.6, traded for around 130.00 cents, same terms as above. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were higher. No sales were reported. Foreign mill inquiries were light. Interest was best from China, India, and Turkey. The COVID-19 Pandemic continued to cause rail, truck, and port labor shortages. The canopy was well developed on stands in Yuma, AZ and irrigation continued. Producers were encouraged with stand progress in central and eastern Arizona, El Paso, TX, and in the Pecos Valley. Development ranged from cotyledon to 5-true leaves. Insect pressure was light. Producers in far west Texas will receive additional river water allocations beginning June 1 that will help alleviate heat stress from the hot, windy conditions. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Interest was best from China, India, and Turkey. The COVID-19 Pandemic continued to place pressure on commodity markets and global shipping logistics. Plentiful sunshine with above average temperatures dominated the weather pattern with daytime temperatures in the mid-80s to upper 90s. Emergence was good and heat units pushed early crop development. More precipitation will be needed to support stands as water demand increases. Planting advanced and 84 percent of the acreage had been sown, according to the National Agricultural Statistics Service’s Crop Progress report released May 16. Most producers had completed sowing activities. Insect pressure was light. American Pima (AP) Spot cotton trading was inactive. Supplies were light. Demand was very good. Average local prices were steady. No new sales were reported. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Interest was best from India and Peru. The COVID-19 Pandemic continued to cause shipping delays and supply chain disruptions. Plants were at 4 to 5-true leaves in the San Joaquin Valley and began to advance with consistently warmer temperatures during the period. Irrigation will begin the first week of June. Elsewhere, stands made good progress under sunny and warm weather with daytime highs in the mid-80s to mid-100s. The plants were at 5 to 6-true leaves in eastern Arizona, El Paso, TX, and at 2-true leaves around Las Cruces, NM. In west Texas, planting neared completion. Emergence was good and stands were irrigated around the clock because of droughty and windy conditions. Producers will receive more water allocations than they expected beginning June 1 in El Paso and Hudspeth counties in 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 #5 FOR UPLAND COTTON May 19, 2022 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 26, 2022, allowing importation of 9,898,391 kilograms (45,462 bales of 480-lbs) of upland cotton. Quota number 5 will be established as of May 26, 2022 and will apply to upland cotton purchased not later than August 23, 2022 and entered into the U.S. not later than November 21, 2022. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period January 2022 through March 2022, 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.