Mp_cn812 January 27, 2023 Weekly Cotton Market Review Spot quotations averaged 328 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 85.21 cents per pound for the week ending Thursday, January 26, 2023. The weekly average was up from 81.93 cents last week, but down from 117.64 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 85.82 cents Monday, January 23 to a low of 84.53 cents Tuesday, January 24. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended January 26 totaled 60,998 bales. This compares to 29,064 bales reported last week and 97,052 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 326,607 bales compared to 1,179,685 bales the corresponding week a year ago. The ICE March settlement price ended the week at 87.50 cents, compared to 83.39 cents last week. Southeastern Markets Regional Summary Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Partly cloudy to overcast conditions were observed across the lower Southeast during the period. Daytime high temperatures were in the 50s and 60s. A storm system moved across the region late in the week and brought moderate precipitation across the region. Weekly accumulated precipitation totals measured from 1 to 3 inches. The moisture improved moderate drought conditions in Alabama and Georgia, according to the U.S. Drought Monitor. Fieldwork was at a stand still due to soft soils. Ginning was winding down; many gins had finished pressing operations for the season and others remained on gin days. Producers and industry members attended the Georgia Cotton Commission’s annual meeting. Sunny to cloudy conditions prevailed across the upper Southeast during the period. Daytime high temperatures were in the 50s and 60s. A storm system moved across the region late in the week. Precipitation totals measured from 1 to 3 inches. The moisture improved moderate drought conditions in the Carolinas, according to the U.S. Drought Monitor. Ginning neared completion, some gins in South Carolina remained on gin days. Textile Mill No domestic mill inquiries or sales were reported. Yarn demand remained lackluster and mills reduced operating schedules. Mill buyers maintained a cautious undertone. Mills continued to produce personal protective equipment for frontline workers and consumers. Demand through export channels was light to moderate. Agents throughout the Far East inquired for any discounted styles of cotton. Trading • Even-running lots containing color 21 and 31, leaf 2 and 3, staple 36 and 37, mike 35-49, strength 29-32, and uniformity 79-82 sold for around 90.00 to 92.50 cents per pound, FOB car/truck (Rule 5, compression charges paid). • A moderate volume of color 41 and 51, leaf 3-5, staple 36-38, mike 35-49, strength 29-32, and uniformity 80-82 sold for around 25 points on ICE March futures, same terms as above. • Mixed lots containing color 52 and better, leaf 2-4, staple 33-35, mike 35-49, strength 28-30, and uniformity 79-82 sold for around 350 points off ICE March futures, same terms as above. • Mixed lots containing color 42 and better, leaf 3-5, staple 34 and longer, mike mostly 43-49, strength 27-30, and uniformity 79-81 sold for around 84.75 cents, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). South Central Markets Regional Summary North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was good. Average local spot prices were higher. Trading of CCC-loan equities was slow. No forward contracting was reported. Cotton was being delivered to fulfill contracts; no new sales were reported. Producers were encouraged as prices regained some ground recently. Mild and damp weather conditions gave way to winter-like temperatures during the reporting period as a strong cold front moved through the region. The National Weather Service issued a wind advisory as gusts up to 40 miles per hour swept through the region. Cold conditions prevailed late week. Daytime high temperatures were in the 40s and 50s during the period. Overnight lows were in the 30s. Nearly 3 inches of precipitation were reported in the Memphis territory. Several gins continued operating. According to the U.S. Drought Monitor, regional soil moisture was rated normal except for pockets of abnormally dry conditions in Arkansas. Virtual and in-person regional industry meetings were attended by all interested parties. Producers carefully monitored the prices of competing commodities and the cost of inputs, particularly nitrogen fertilizers. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was good. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cotton was being delivered to fulfill contracts; no new sales were reported. Producers were encouraged as prices rebounded recently. Seasonably cool weather conditions gave way to winter-like temperatures during the reporting period as a strong storm front moved through the region. Wind gusts up to 30 miles per hour were reported through the region. Colder conditions prevailed late week. Daytime high temperatures were in the 40s and 50s during the period. Overnight lows were in the 30s. Nearly 2 inches of precipitation were reported throughout the region. Virtual and in-person regional industry meetings were attended by all interested parties. According to the U.S. Drought Monitor, regional soil moisture was rated normal throughout the territory, with the exception of isolated pockets of abnormal dryness in central Mississippi. Producers continued to monitor commodity prices and the cost of inputs, particularly nitrogen fertilizers. Trading North Delta • A light volume of CCC-loan equities traded for around 26.00 cents per pound. South Delta • No trading activity was reported. Southwestern Markets Regional Summary East Texas Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Korea, and Pakistan. The community transmission rates were medium in Nueces County, according to the Centers for Disease Control and Prevention. Fieldwork was interrupted because of soft soils in the Upper Coast and in the Coastal Bend with daytime high temperatures in the mid-50s to mid-70s. Overnight temperature lows were in the 40s to 60s. Tornados ripped through populated areas of south Texas that left significant building damage. Beneficial precipitation was received with more in the forecast. Daytime high temperatures in the Rio Grande Valley were in the mid-60s to mid-80s. General excitement was expressed for the rain that is in the forecast ahead of planting season, which begins next month. Sample receipts continued to trickle in from gins in the Blackland Prairies, but were expected to end soon. Seedbed preparation was slowed by recent rainfall. Beneficial rain and snow were received in Kansas and Oklahoma that helped ease dry soils and improved wheat and cover crops. In Kansas, ginning neared the end, but snow slowed down the pick up of remaining modules. In Oklahoma, most gins were able to continue operations through inclement weather. Seed meetings were scheduled to begin next month. West Texas Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was moderate, but no contracts were reported. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Korea, and Pakistan. The community transmission rates were light in Dawson, Lubbock, and Taylor Counties, according to the Centers for Disease Control and Prevention. Rain and snowfall slowed ginning progress with daytime temperatures in the low 30s to mid-60s and overnight low temperatures in the teens to upper 40s. A winter storm brought up to 10 inches of beneficial snowfall mixed with rain on January 24 that halted fieldwork. Most schools and many businesses in the High Plains were closed due to hazardous road conditions. Industry members were encouraged by the moisture that will help ease parched soils. More precipitation is needed to refill wells and improve sub-soil moisture levels. Producers were generally undecided on which crops to plant next year and were slow to book planting seed. Higher input costs and current market prices have caused some to reconsider planting options moving into the 2023-crop year. Pre-plant meetings and crop conferences were held around the region. Trading East Texas • In Texas, a lot containing a light volume of color 11 and 21, leaf 2 and 3, staple 36, mike averaging 44.8, strength averaging 30.0, and uniformity averaging 81.9 sold for around 85.00 cents per pound, FOB warehouse (compression charges not paid). • In Kansas, mixed lots containing a heavy volume of color 32 and better, leaf 2-4, staple 33-35, mike 26-44, strength 27-36, and uniformity 78-82 sold for 80.00 to 82.00 cents, FOB car/truck (compression charges not paid). • In Oklahoma, lots containing a heavy volume of color 21 and 31, leaf 2 and 3, staple 36-40, mike 38-48, strength 27-36, and uniformity 78-81 sold for 85.00 to 87.00 cents, same terms as above. • A moderate volume containing mostly color 31-42, leaf 2 and 3, staple 34-37, mike 37-49, strength 27-31, uniformity 78-81, and 25 percent extraneous matter sold for 82.00 to 83.25 cents, same terms as above. West Texas • Even-running lots containing a moderate volume of color 41 and better, leaf 3 and better, staple 36-38, mike 40-50, strength 26-34, and uniformity 78-83 sold for 86.00 to 87.00 cents per pound, FOB car/truck (compression charges not paid). • Mixed lots containing a heavy volume of color 41 and better, leaf 4 and better, staple 35-37, mike 34-49, strength 29-33, and uniformity 79-82 sold for 81.25 to 83.50 cents, same terms as above. • A heavy volume of color 21-34, leaf 2-6, staple 35 and longer, mike averaging 38.1, strength 26-33, uniformity 77-83, and 50 percent extraneous matter sold for around 75.00 cents, same terms as above. • A lot containing a heavy volume of color 21-41, leaf 2-7, staple 36 and longer, mike averaging 34.1, strength averaging 29.1, uniformity averaging 78.9, and 25 percent extraneous matter sold for around 73.75 cents, same terms as above. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was light. Producers delivered previously contracted cotton to merchant and cooperative marketing pools. ICE March futures gained ground early in the period, which prompted producer offerings. Average local spot prices were higher. Producers inquired for 2023-crop contracts. No contracts were signed. No domestic mill activity was reported. A mix of clouds and sun kept daytime temperatures in the 50s for central Arizona. Wet conditions prevented growers from working the fields. Snow showers brought moisture to Safford, Arizona mid-week. Ginning continued. Daytime high temperatures were in the 60s in New Mexico and El Paso, Texas early in the reporting period, but dropped into the 40s as a storm front brought scattered showers. Ginning was completed. Growers attended meetings. 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 higher. Foreign mill inquiries were light. Temperatures were mostly in the 50s, under cloudy conditions. Overnight lows were in the 30s prompting freeze warnings. Dense fog advisories were issued during the period. A high-pressure system kept the Valley mostly rain-free for the week. Rivers and streams were flowing. Reservoirs were filling. Several cities and locales received enough rain to push their historical rainfall average to 200 percent. Droughty conditions were eased. The U.S. Drought Monitor showed no areas of California in severe drought or exceptional drought categories. Fields remain wet. The California Department of Water Resources reported the statewide snowpack was 218 percent of normal for January 24, and 127 percent of the April 1 average. The area prepared for the World Ag Expo to be held February 14-16 in Tulare. The Visalia Classing Office continues to operate two shifts. American Pima (AP) Spot cotton trading was slow. Supplies were moderate. Producer offerings were light. Demand was light. No forward contracting or domestic activity was reported. Average local spot prices were lower. Foreign mill inquiries were light. Lack of demand put pressure on U.S. prices. Temperatures were in the 40s to 50s in the Far West. Freeze warnings were the norm as overnight lows were in the 20s to 30s. The region stayed mostly rain-free, but snow showers were reported in higher elevations of Arizona and New Mexico. Ginning continued. Fieldwork was slow due to wet conditions. American Pima quality averaged 94.85 cents CCC-loan rate for cotton classed through January 26. Trading Desert Southwest • A moderate volume of Arizona cotton color 21 and better, mostly leaf 2 and better, staple 37 and longer, mike averaging 42.5, strength averaging 30.0, and uniformity averaging 81.3 sold for 25 to 50 points on ICE March futures, uncompressed, FOB warehouse. • A light volume of color 41, leaf 3 and 4, staple 36 and 37, mike averaging 45.1, strength averaging 30.0, and uniformity averaging 80.70 sold for around 300 points off ICE March futures, same terms as above. San Joaquin Valley • No trading activity was reported. American Pima • A light volume of color 2, leaf 2, and staple 50 was traded.