1 2 3 4 5 6 7 8 9 10 11 12 13 14 Vol. 106 No. 6 September 06, 2024 Inside this Issue Market Overview Price Support Spot Quotation ICE Futures A Index Notice to Trade Southeastern South Central Southwestern Western Forward Contracting Pima Quotations Textile Mill Report Cotton and Tobacco Program . Cotton Market News Division . 3275 Appling Road . Memphis, TN 38133 . 901.384.3016 Mp_cn812 Weekly Cotton Market Review Cotton Market Reports Subscribe to this report Source: USDA, AMS, Cotton and Tobacco Program, 1/ Cotlook Subscribe to all Cotton Market reports Spot quotations averaged 10 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 64.16 cents per pound for the week ending Thursday, September 5, 2024. The weekly average was up from 64.06 cents last week but down from 81.72 cents reported the corresponding period a year ago. Daily average quotations ranged from a season high of 64.94 cents on Tuesday, September 3 to a low of 63.67 cents on Thursday, September 5. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 5 totaled 4,189 bales. This compares to 2,173 reported last week and 11,118 bales reported the corresponding week a year ago. Total spot transactions for the season were at 21,222 bales compared to 54,913 bales the corresponding week a year ago. The ICE October settlement price ended the Spot cotton trading was slow. Producer offerings and supplies were light. Demand was moderate. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Cloudy to partly cloudy conditions prevailed across the lower Southeast during the period. Daytime high temperatures were in the 80s and 90s with nighttime lows in the upper 60s. Localized thunderstorms brought moderate precipitation to areas of south Alabama, the Florida Panhandle, areas of coastal Georgia. Precipitation totals measured nearly one inch of moisture, with heavier accumulations observed in southeast Georgia, as well as much of the lower Southeast region. Blooming and boll-setting advanced. In Alabama and South Carolina, producers were applying defoliants as boll opening was about two weeks ahead of the five-year average. In Florida, spider mite populations exceeded threshold levels and were treated to eliminate infestations. Clouds and rain dominated the weather pattern across the upper Southeast during the period. Daytime high temperatures in the low 90s dropped into the upper 70s by the end of the report period. Nighttime lows were in the low 50s to low 60s as cool and wet weather moved across the region. Widespread thunderstorms brought more than three inches of precipitation as the crop is on the verge of finishing. Producers reported evidence of hard-locked bolls and boll rot in fields that received excessive rainfall earlier in the season, and some expressed concern that his situation could worsen under the current wet environmental conditions. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4 and better, and staple 35 and longer for January through December 2025 delivery. No sales were reported, and no additional inquiries were reported. The undertone from mill buyers remained cautious as they balanced production with yarn orders to avoid building inventories. Demand through export channels was moderate but had improved as futures prices weakened. Agents for mills throughout in South America inquired for color 31, leaf 3, and staple 37 for December shipment. Mill buyers in the Far East inquired for any discounted styles of cotton. Trading • A light volume of color 51 and better, leaf 5 and better, staple 34 and longer, mike 44-49, strength 29-33, and uniformity 81-84 sold for around 65.50 cents per pound, FOB car/truck (Rule 5, compression charges paid). Southeastern Markets Regional Summary Danny Pino . Macon, GA . ............ . North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Business was very slow. Cloudy conditions dominated the weather pattern during the week with a cold front in the nearby forecast. Precipitation totals measured from trace amounts to less than one-quarter of an inch of beneficial rainfall. Daytime high temperatures were in the 80s to 90s. Overnight temperatures were in the 60s to 70s. Producers were encouraged with the progress of the crop and dryland potential yield, which is expected to make more than 1,200 pounds per acre. Irrigation was complete on early-planted fields, but continued in many places to maintain adequate soil moisture as the crop neared completion. Fieldwork was active. Defoliation is expected to start soon on early, irrigated cotton, while late planted stands continued to progress towards maturity. Harvesting will be underway sooner than some producers had estimated last month. According to the National Agricultural Statistics Service’s Crop Progress report released on September 3, cotton bolls opening was at 68 percent in Arkansas, 14 in Missouri, and 37 percent in Tennessee. Boll setting is above the five-year average for each state. The cotton condition was mostly fair to good for Arkansas, Missouri, and Tennessee. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Daytime temperatures dropped from the low 90s to the upper 70s during the period. Nighttime temperatures were in the upper 60s to low 70s. Occasional sunny skies with considerable cloudiness brought trace amounts to less than two and three-quarters inches of rain. Fieldwork was active. Irrigation is complete. Defoliation has begun in some areas and expected to start in other areas soon. Hot, dry conditions helped stands progress and influenced harvesting. According to the National Agricultural Statistics Service’s Crop Progress report released on September 3, cotton bolls opening was 64 percent in Louisiana and 59 percent in Mississippi. Boll setting is above the five-year average for each state. Cotton conditions were mostly fair to good for Louisiana and Mississippi. South Central Markets Regional Summary Aerielle McDaniel . Memphis, TN . ............ . Trading North Delta • No trading activity was reported South Delta • No trading activity was reported. North Delta Southwestern Markets Regional Summary Bethany Lindgren . Memphis, TN . ............ . Jane Byers-Angle . Lubbock, TX ............. . Jane.Byers-Angle@usda.gov East Texas-South Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from India, Korea, and Pakistan. Harvesting activities in the Blackland Prairies were hindered by untimely rainfall. Wet conditions dominated the period, with daytime temperature highs in the upper 80s to mid-90s. Nighttime temperature lows were in the 70s. Some producers made harvesting progress early in the period and were able to dodge the storms before fields became too muddy to support equipment. Heavy rainfall in the Upper Coast suspended harvesting activities. Some locations received more than 6 inches of moisture that came during harvest season when bolls were open and exposed to the elements. Producers were concerned because harvesting had recently begun, and most of the crop remained to be harvested. In South Texas, daytime high temperatures were in the upper 80s to mid-90s, with overnight lows in the 70s. Harvesting was completed and ginning continued. Abundant rainfall slowed moving modules on the gin yards. More precipitation is expected with additional daily chances for precipitation in the 10-day forecast. The quality results were reflective of a rainy period during the harvest season. Ginning continued in the Rio Grande Valley, and some facilities neared the end of pressing cotton. Producers plowed and prepared fields for spring planting. West Texas-Kansas-Oklahoma Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were heavy. Interest was best from India, Korea, and Pakistan. Harvesting activities in the Blackland Prairies were hindered by untimely rainfall. Wet conditions dominated the period, with daytime temperature highs in the upper 80s to mid-90s. Nighttime temperature lows were in the 70s. Some producers made harvesting progress early in the period and were able to dodge the storms before fields became too muddy to support equipment. Heavy rainfall in the Upper Coast suspended harvesting activities. Some locations received more than 6 inches of moisture that came during harvest season when bolls were open and exposed to the elements. Producers were concerned because harvesting had recently begun, and most of the crop remained to be harvested. In South Texas, daytime high temperatures were in the upper 80s to mid-90s, with overnight lows in the 70s. Harvesting was completed and ginning continued. Abundant rainfall slowed moving modules on the gin yards. More precipitation is expected with additional daily chances for precipitation in the 10-day forecast. The quality results were reflective of a rainy period during the harvest season. Ginning continued in the Rio Grande Valley, and some facilities neared the end of pressing cotton. Producers plowed and prepared fields for spring planting. Southwestern Markets Regional Summary Bethany Lindgren . Memphis, TN . ............ . Jane Byers-Angle . Lubbock, TX ............. . Jane.Byers-Angle@usda.gov Trading East Texas-South Texas • A lot containing a light volume of color 11 and 21, leaf 2-3, staple 37, mike averaging 47.0, strength averaging 31.9, and uniformity averaging 83.3 sold for around 70.50 cents per pound, FOB warehouse (compression charges not paid). • Lots containing a heavy volume of color 41 and better, leaf 4 and better, staple 35 and 36, mike 42-51, strength 27-33, and uniformity 79-84 sold for 68.50 to 68.75 cents, same terms as above. • A lot containing a moderate volume of color 41 and 42, leaf 3-5, staple 35, mike 45-50, strength 27-30, and uniformity 80-83 sold for around 63.50 to 64.00 cents, same terms as above. West Texas, Kansas & Oklahoma Bethany Lindgren Photos courtesy of Kay Jacinto Kerr Southwestern Markets Regional Summary Bethany Lindgren . Memphis, TN . ............ . Jane Byers-Angle . Lubbock, TX ............. . Jane.Byers-Angle@usda.gov Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill activity was reported. Average local prices were steady. Foreign mill inquiries were light. In Arizona, conditions were sunny and hot. Excessive heat warnings were issued as temperatures reached into the mid-110s with nighttime lows in the 80s. No rain was reported in the period. In Yuma, AZ, defoliation continued and harvesting was underway. Sources reported that yields have not been as good as expected and boll size has been small. Ginning commenced on a limited scale. In central Arizona, fields reached cutout and bolls began to crack open at the bottom of plants. Final irrigations were underway. Sources report that the crop looks to be average, but better than last season. In New Mexico and El Paso, TX, cooler temperatures were prevalent with daytime highs in the 70s and 80s. Cloudy skies brought rain showers that produced up to one and one-quarter of an inch of precipitation in some locales. In New Mexico, the crop progressed as plants continued to set bolls and began to crack open. 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 steady. Foreign mill inquiries were moderate and for mostly premium qualities. Shippers continued to offer 2023-crop cotton. Daily temperatures were in the triple-digits throughout the territory with nightly lows in the 60s and 70s. No rain was reported in the period. Cotton bolls continued to mature and overall the crop progressed. Producers and industry members attended annual meetings. American Pima (AP) Spot cotton trading was inactive. Supplies were heavy. Demand was moderate. No forward contracting or domestic activity was reported. Average local spot prices were steady. Producers continued to hold onto a moderate volume of 2023 crop Foreign mill inquiries were moderate and for mostly premium qualities. Interest was best from China and India. In the San Joaquin Valley, sunny skies were prevalent with triple-digit temperatures. No rain was reported in the period. Plants were blooming as fields reached cutout and bolls continued to mature and crack open. Final irrigations were applied. Field equipment received maintenance. In Yuma, AZ temperatures were in the triple-digits and excessive heat warnings were issued. No rain was reported. Defoliation and harvesting continued. Bolls were popping open. In New Mexico, cooler temperatures were prevalent with daytime highs in the 70s and 80s. Precipitation brought accumulations up to one and one-quarter inches. Producers were completing final irrigations and getting equipment ready for harvest. Local sources reported that bolls were beginning to crack open at the bottom of plants. Overall, the crop progressed well. Producers and industry members attended annual meetings. Western Markets Regional Summary Veronica Williamson. Florence, SC . ............ . Veronica.Williamson@usda.gov Trading Desert Southwest • No trading activity was reported. San Joaquin Valley • No trading activity was reported. American Pima • No trading activity was reported. Photos courtesy of Greg Townsend, Area Director Visalia Classing Office Western Markets Regional Summary Veronica Williamson. Florence, SC . ............ . Veronica.Williamson@usda.gov Corpus Christi Bales Classed The Corpus Christi office classed 124,642 bales for the week ending September 5. Quality data for the week was 44.1 percent for color 41, 51.7 percent for leaf 3, staple averaging 36.48, mike averaging 4.58, strength averaging 31.30, and uniformity averaging 81.75. The Rayville office started classing cotton this week, but data was withheld. For the entire U.S. crop, total classed during the season was 490,203 bales. The complete quality reports can be found at: My Market News Percentage of Upland Cotton Setting and Opening Bolls Harvest has started in some parts of the cotton belt and is just around the corner for other areas as bolls continue to pop open. The Crop Progress report released on September 3, estimated that 95 percent of the crop is setting bolls, six percent ahead of the previous week and one percent ahead of the five-year average. Thirty-seven percent of the total U.S. crop’s bolls are opening, 12 percent ahead of the previous week and six percent ahead of the five-year average. The complete report can be found here: Crop Progress. USDA ANNOUNCES SPECIAL IMPORT QUOTA #21 FOR UPLAND COTTON September 5, 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 September 12 2024, allowing importation of 8,469,715 kilograms (38,901 bales of 480-lbs) of upland cotton. Quota number 21 will be established as of September 12, 2024, and will apply to upland cotton purchased not later than December 10, 2024, and entered into the U.S. not later than March 10, 2025. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period May 2024 through July 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. Source: USDA, AMS and ICE U.S. Futures Delivery Points Stocks as of 9-05-2024 Awaiting Review Non-Rain Grown Cotton Dallas/FT. Worth, TX 265 0 0 Galveston, TX 0 0 0 Greenville, SC 0 0 0 Houston, TX 0 0 0 Memphis, TN 0 0 0 Total 265 0 0 Number of Bales in Certificated Stocks Forward Contracting Upland cotton growers in the United States had booked 9 percent of their expected acreage by the end of August this season. This was below the 13 percent booked through the same period last year. Contracting has been most active in the South Central states were about 26 percent was under contract, compared to 13 percent a year earlier. In Southwestern states, about 5 percent of the crop was under contract, compared to 16 percent the previous year. Southeastern states contracted about 4 percent by the end of August, compared to 6 percent the previous year. Western states’ growers had no forward contracting, compared to 6 percent the previous year. These estimates were based on the National Agricultural Statistics Board's August Harvested Acres report and information collected by the Cotton and Tobacco Program’s Market News Division.