November 24, 2023 Mp_cn812 Weekly Cotton Market Review Southeastern Markets Regional Summary Spot quotations averaged 212 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 75.91 cents per pound for the week ending Thursday, November 23, 2023. The weekly average was up from 73.79 cents last week but down from 81.18 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 76.33 cents Friday, November 17 to a low of 75.51 cents Tuesday, November 21. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended November 23 totaled 16,530 bales. This compares to 18,040 bales reported last week and 6,705 bales reported the corresponding week a year ago. Total spot transactions for the season were 164,558 bales compared to 64,080 bales the corresponding week a year ago. The ICE March settlement price ended the week at 80.90 cents, compared to 80.88 cents last week. Spot cotton trading was inactive. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers were actively rolling contracts from the December to the March ICE futures trading month. Cloudy and overcast conditions prevailed during much of the period across the lower southeast. Daytime high temperatures in the 70s dipped into the 60s late week. Thunderstorms brought moderate precipitation to portions of west Alabama early in the week. Precipitation totals measured 1 to 2 inches. Moderate to extreme drought conditions lingered in central and southern Alabama and the Florida Panhandle.Yields in these areas were negatively affected. The strongest yields were reported in north Alabama, according to local experts. Southwest Georgia cotton yields were noted to be good with minimal boll rot. Defoliation and harvest activities advanced as dry conditions allowed. A mix of sunny to cloudy conditions was observed across the upper southeast during the period. Daytime high temperatures in the 70s cooled into the 60s late in the week. Showers and thunderstorms brought moisture to central South Carolina. Rainfall totals measured from trace amounts to around 1 inch of moisture. Defoliation and harvesting advanced at a good pace. Overall yields were reported to be fair to good, although dryland yields were lower in some areas when compared to previous years. Textile Mill Domestic mill buyers inquired for a moderate volume of color 51 and better, leaf 4 and bettter, and staple 34 and longer for January through October delivery. No sales were reported and no additional inquiries were reported. Mill buyers maintained a cautious undertone with some plants limiting production schedules in order to maintain yarn inventory levels. Demand through export channels was moderate. Agents for mills in Vietnam inquired for a moderate volume of color 31, leaf 3, and staple 37 for April through September 2024 shipment. Chinese mill buyers inquired for a moderate volume of USDA Green Card class, color 31, leaf 3, and staple 37 for January through March 2024 shipment. 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 very light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. No new sales were reported. Merchants were actively rolling contracts from the December ICE futures trading month to the March contract. Unsettled climatic conditions prevailed throughout the region. Daytime temperatures ranged from the 40s and 60s. Overnight lows fluctuated from the low 30s into the low 50s mid-week, dropping back into the low 30s by the end of the report period. A storm front of warm, moist air brought 1 inch to nearly 3 inches of much-needed moisture to the Memphis territory mid-week. A few producers still trying to complete fieldwork were delayed by the inclement weather. Approximately 75 percent of the region’s cotton has been ginned so far, but a few large gins were expected to continue running for several weeks. According to the U.S. Drought Monitor, the cotton-producing areas of southern Arkansas and western Tennessee were experiencing moderate to severe drought. Producers carefully monitored the market closely hoping for an increase in the price. Virtual and in-person regional industry meetings were being planned and attended. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. No new sales were reported. Producers anxiously wait for prices to begin rising. Foggy and cloudy weather conditions moved through the region. Daytime high temperatures were in the upper 50s to mid-70s. Overnight lows were in the low 30s to the low 50s. Scattered showers brought three-quarters of an inch of beneficial moisture to the region throughout the week. Fieldwork is being done in preparation for next year’s crop season in areas that received little precipitation. Many gins in the region have finished annual operations. According to the U.S. Drought Monitor, much of the region was rated extreme or exceptional drought. Significant rainfall will be needed to restore soil moisture before spring planting can take place. Producers continued to monitor commodity prices, while hoping to see the market rebound. Virtual and in-person local and regional industry meetings and producer workshops were being planned and attended. Trading North Delta • A 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 moderate. Demand was 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 Bangladesh, India, and Mexico. The ICE Futures U.S. trading platform closed Thursday, November 23, in observance of the 2023 Thanksgiving holiday Final harvesting was expected around intermittent storms that brought a light amount of rainfall to some locations. Essentially, harvest is done with only a small amount of acres to process. A few gins reopened to finish ginning, according to local sources. Cotton acreage was expected to decrease next season in the Blackland Prairies because of repeated poor yields and high input costs. Acres are expected to be shifted to wheat and corn. The Rio Grande Valley received 3 to 5 inches of very beneficial rainfall over a four-day period. More moisture will be needed ahead of spring planting, which will begin in late February. Producers were encouraged as plans were made for next year’s crop plantings. West Texas-Kansas-Oklahoma Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was good. 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 Bangladesh, India, and Mexico. Harvesting in High Plains made good progress catching up from last week’s high humidity and foggy conditions that had halted fieldwork. Cold winds gusted and hampered basket stripper harvesting but did not slow down round module harvesting. Many gins were caught up with the modules on the gin yards and will close on Thanksgiving Day, but reopen the following day. A few gins operated one shift on the holiday. Light rain showers brought additional precipitation, but coverage was not widespread. Some fields, including irrigated, were evaluated and submitted for insurance. Stands going to insurance added challenges for estimating harvesting and ginning progress, but local sources reported harvesting at 60 to 70 percent completed depending on location. Harvesting expanded in the Rolling Plains and more gins started pressing operations. Modules were hauled from the fields to the gin yards. Producers have been encouraged with better-than-expected quality grades. South central Kansas received heavy rainfall that left fields muddy and fieldwork at a standstill. Harvesting was expected to resume after the holiday when the fields had firmed. Local sources estimated 85 percent of the fields had been harvested in this region, and 50 to 60 percent harvested in eastern Kansas. The Oklahoma harvest was estimated to be 60 to 85 percent done. Most of the gins will close one day for the Thanksgiving holiday. Trading East Texas-South Texas • In Texas, a heavy volume of lots containing mostly color 31 and better, leaf 1 and 2, staple 36 to 40, mike 35-50, strength 29-36, and uniformity 78-83 sold for 81.00 to 82.50 cents per pound, FOB car/truck (compression charges not paid). • Lots containing a heavy volume of mostly color 31 and better, leaf 2 to 4, staple 36-41, mike 37-47, strength 30-36, and uniformity 79-84 sold for 80.00 to 80.50 cents, same terms as above. • In Kansas, a mixed lot containing a light volume of color 21 to 32, leaf 2 to 5, staple 33 and 34, mike averaging 34.6, strength averaging 30.5, and uniformity averaging 78.2 sold for around 66.50 cents, same terms as above. • In Oklahoma, a light volume of mostly color 11 and 21, leaf 1, staple 36 and 37, mike 45-48, strength 30-35, and uniformity 80-83 sold for 79.00 to 80.00 cents, same terms as above. West Texas-Kansas-Oklahoma • In Texas, a heavy volume of lots containing color 31 and better, leaf 3 and better, staple 36-41, mike 35-50, strength 30-36, and uniformity 78-83 sold for 81.00 to 81.75 cents per pound, FOB car/truck (compression charges not paid). • Similar lots containing a heavy volume of mostly color 31 and better, leaf 3 and better, staple 37-40, mike 37-50, strength 30-35, and uniformity 80-82 sold for 78.50 to 80.00 cents, same terms as above. • A heavy volume of mixed lots mostly color 32 and better, leaf 5 and better, staple 34-36, mike 38-55, strength 26-33, and uniformity 77-82 sold for 75.00 to 77.00 cents, same terms as above. • In Kansas, a light volume of cotton mostly color 11 and 21, leaf 2-4, staple 36, mike 34-38, strength averaging 32.4, and uniformity averaging 80.3 sold for 75.75 to 76.00 cents, same terms as above. • In Oklahoma, a light volume of mostly color 11 and 21, leaf 1, staple 36 and 37, mike 45-48, strength 30-35, and uniformity 80-83 sold for 79.00 to 80.00 cents, same terms as above. 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. ICE March futures hovered around 80.50 to 81.50 cents. Producers’ price ideas were firm to higher. Producers delivered 2023-crop cotton to the co-op, merchant marketing pools, or the CCC-loan program. Average local spot prices were higher. Foreign mill inquiries were light. Cold weather and showers moved into the region early in the reporting period. Precipitation amounts measured around one-tenth of an inch. Rain and fog slowed harvesting in New Mexico. Ginning was steady. Most gins were taking 1 to 2 days off for the Thanksgiving holiday. There are a couple of gins that have not yet started. According to the National Agricultural Statistics Service’s Crop Progress report for week ending November 19, harvesting was 62 percent completed in Arizona and 50 percent in New Mexico. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill activity was reported. ICE March futures hovered around 80.50 to 81.50 cents. Producers’ price ideas were firm to higher. Producers delivered 2023-crop cotton to the co-op, merchant marketing pools, or into the CCC-loan program. Average local spot prices were higher. Foreign mill inquiries were light. Daytime high temperatures dropped into the 60s, with overnight lows in the 40s. Scattered showers moved through early in the reporting period. Precipitation amounts varied with official readings at one-tenth of an inch. Most gins were taking 1 to 2 days off for the Thanksgiving holiday. Producers shredded stalks in compliance with the California Pink bollworm program. Producers are looking into other row crops for next season, although cotton is NOT completely off the table. American Pima (AP) Spot cotton trading was slow. Supplies of 2023-crop cotton were increasing. Producer price ideas were firm to higher. Demand was light. No forward contracting or domestic activity was reported. Producers delivered 2023-crop cotton to the co-op, merchant marketing pools, or into the CCC-loan program. Average local spot prices were steady. Foreign mill inquiries were light. Early in the reporting period, a cold front brought scattered showers and cooled temperatures for cotton-growing areas of Arizona, California, and New Mexico. Official rainfall totals measured around one-tenth of an inch, but many areas received more. Rain and fog slowed harvesting in New Mexico. Mostly sunny conditions mid-week pushed daytime temperatures to above average for this time of year. Fieldwork resumed after soils were dried. Harvesting reached 62 percent completed in Arizona, 75 in California, and 50 percent in New Mexico, according to the National Agricultural Statistics Service. Ginning advanced. Most gins were taking 1 to 2 days off for the Thanksgiving holiday. Trading Desert Southwest • No trading activity was reported. San Joaquin Valley • No trading activity was reported. American Pima • A light volume of mostly color 1, leaf 1, and staple 48 was sold. USDA ANNOUNCES SPECIAL IMPORT QUOTA #6 FOR UPLAND COTTON November 24, 2023 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 November 30, 2023, allowing importation of 7,837,716 kilograms (35,998 bales of 480-lbs) of upland cotton. Quota number 6 will be established as of November 30, 2023 and will apply to upland cotton purchased not later than February 27, 2024 and entered into the U.S. not later than May 27, 2024. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period July 2023 through September 2023, 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.