Mp_cn812
May 7, 2021
Weekly Cotton Market Review
Average spot quotations were 89 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 84.03 cents per pound for the
week ending Thursday, May 6, 2021. The weekly average was down from 84.92
cents last week, but up from 50.02 reported the corresponding period a year
ago. Daily average quotations ranged from a low of 82.99 cents Tuesday,
May 4 to a high of 86.40 cents Thursday, May 6. Spot transactions reported
in the Daily Spot Cotton Quotations for the week ended May 6 totaled 2,327
bales. This compares to 10,838 reported last week and 5,311 spot transactions
reported the corresponding week a year ago. Total spot transactions for
the season were 1,351,427 bales compared to 1,458,876 bales the corresponding
week a year ago. The ICE July settlement price ended the week at 90.58 cents,
compared to 86.54 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were light.
Demand was light. Average local spot prices were lower. Producers took
advantage of higher ICE futures to fix prices and forward contract a light
volume of 2021-crop cotton. Trading of CCC-loan equities was inactive.
The COVID-19 Pandemic continues to negatively affect cotton demand and disrupt
supply chains. Vaccination doses were being distributed at a steady pace.
Mostly cloudy to overcast conditions prevailed across the region during
the period. Daytime high temperatures were mostly in the 80s to low 90s.
Severe thunderstorms moved across the lower Southeast over the weekend and
early in the week. Heavy wind, hail, and tornadoes accompanied the storms
downing trees, power lines, and damaging buildings. Areas of north Alabama,
north Georgia, south Alabama, and the Florida Panhandle received downpours
of more than 4 inches. Flash flooding was observed in some locales.
Planting had advanced at a good pace ahead of the rain events, but remained
slightly behind the five-year average, according to the National Agricultural
Statistics Service�s (NASS) Crop Progress report. A period of warm and sunny
weather was needed to help dry saturated soils and allow planting and fieldwork to resume.
Sunny weather over the weekend gave way to cloudy skies and wet weather
entering the week. Daytime high temperatures were mostly in the low 80s to
low 90s. Widespread showers brought moisture to areas throughout the upper
Southeast. Precipitation totals measured from one-half of an inch in areas
throughout North Carolina and Virginia to up to four inches in areas of central
South Carolina. Field activities were delayed in the wettest areas. However,
fieldwork advanced at a good pace ahead of the rain events and planting was
slightly ahead of the five-year average in the Carolinas and Virginia, according to NASS.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and
staple 34 and longer for fourth quarter 2021 and first quarter 2022 delivery.
No sales were reported. Yarn demand was good. Labor shortages continued to affect
operating schedules and some locations remained idled due to lack of personnel.
Personal protective equipment continued to be produced for frontline workers and consumers.
Demand through export channels was light. Inquiries were limited as governments
throughout South Asia have restricted production and implemented lockdown rules to
combat surging COVID-19 outbreaks.
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 lower. Trading of CCC-loan equities was
slow. No forward contracting was reported. The COVID-19 Pandemic continues to
negatively impact the overall global economy and supply chains. Daily infection
rates in the United States were trending higher over the past few weeks in many
areas. The pace of vaccinations declined in many areas.
Cloudy to partly cloudy conditions prevailed for most of the week. Daytime highs
were in the 70s to mid-80s. Overnight temperatures were in the 40s to 60s.
Nearly 3 inches of rain fell during the period. Soil moisture levels were mostly
surplus. The National Weather Service issued a River Flood warning for the northern
part of the Memphis territory. Field activities were delayed for several days
until soft soils could dry sufficiently to support equipment. More rain is in the
extended forecast. According to the National Agricultural Statistics Service�s
Crop Progress report released on May 3, planting was underway at 7 percent in
Arkansas, 3 in Missouri, and 2 percent in Tennessee. Producers and other members
of the cotton industry participated in virtual industry events and educational
seminars, including the American Cotton Shippers Association�s Annual Convention.
South Delta
Spot cotton trading was inactive. Supplies of available cotton and demand were
light. Average local spot prices were lower. Trading of CCC-loan equities was
inactive. No forward contracting was reported. The COVID-19 Pandemic continues
to negatively impact the overall global economy. Daily infection rates in the
United States were trending higher over the past few weeks in many areas. The
rate of vaccinations has slowed in many states.
Cloudy to partly cloudy conditions dominated the weather pattern. Daytime highs
were in the 80s. Overnight temperatures varied from the 50s to 70s as a cold
front moved through the region late week. Thunderstorms during the week brought
over 3 inches of rain to many places. Fieldwork was delayed in areas where soils
were too soft to support equipment. Soil moisture was rated at adequate to surplus
in most places; flooding was reported in areas already saturated from frequent rain
showers. According to the National Agricultural Statistics Service�s Crop Progress
report released on May 3, planting was underway at 15 percent in Louisiana and 10
percent in Mississippi. These figures were about a week behind the five-year average.
Producers and other members of the cotton industry participated in virtual industry
events and educational seminars, including the American Cotton Shippers Association�s Annual Convention.
Trading
North Delta
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A light volume of CCC-loan equities traded for around 26.00 cents per pound.
South Delta
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No trading activity was reported.
Southwestern Markets Regional Summary
East Texas
Spot cotton trading was slow. 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 inquiries
were light. Interest was best from China, India, Taiwan, and Vietnam. The COVID-19
Pandemic continued to impact commodity markets and has slowed the distribution of
farming chemicals. Medical communities hosted COVID-19 vaccination clinics.
The Rio Grande Valley received up to 3 inches of beneficial precipitation with daytime
temperature highs in the upper 70s to low 90s. Some acres have failed and will be
planted to other crops. The cotton was considered late because of a freeze that
occurred in February during planting time. Stands had begun to square. Irrigation
was applied if available. A widespread thunderstorm brought up to 8 inches of rainfall
to south Texas, the Coastal Bend, and the Upper Coast. Most locations received 1 to 3
inches that left fields soggy and slowed fieldwork. The Texas A&M Agrilife Extension
Service hosted the virtual Plastics in Cotton Seminar II that was well attended.
The Blackland Prairies experienced several storm fronts that brought rainfall, hail,
and high winds. Tornado activity in Ellis County caused overturned semitrucks and
power outages. Many homes and businesses were damaged or destroyed. Recent rainfall
was reported up to 9 inches in central Texas with most areas reporting lesser amounts,
according to local sources. Flooding was problematic around creeks, rivers, and stock
tanks. Some cotton fields had standing water.
Planting was initiated in Kansas, but most producers were determining when the ground
temperature would be optimal for sowing activities. The forecast calls for cool overnight
lows that will delay planting at some locations. Light rain was received in Kansas and Oklahoma.
West Texas
Spot cotton trading was slow. 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 inquiries were light.
Interest was best from China, India, Taiwan, and Vietnam. Cotton logistics continued to
be impacted by the COVID-19 Pandemic and port congestion. County health departments and
local pharmacies continue to host vaccination clinics.
Thunderstorms brought precipitation, wind, and hail. Daytime highs were in the low 70s to
low 90s, with overnight temperatures in the 40s to 50s. Most locations received a light
amount of rainfall, but Junction received almost 2 inches of moisture. The rainfall was
beneficial, but more is needed to ensure good germination at planting. Some locations in
the Panhandle were extremely dry and need a slow-soaking rain. Soil temperatures are warming
to optimal planting conditions and producers were planning when to begin sowing activities.
Fields were tilled. Preemergent herbicide was applied. Meetings were held.
Trading
East Texas
�
In Kansas, a light volume of color 33, leaf 4 and 5, staple 35 and longer, mike 34-37,
strength 26-31, uniformity 77-81, and 75 percent extraneous matter sold for around 67.00
cents per pound, FOB car/truck (compression charges not paid).
�
In Oklahoma, a heavy volume mixed lot of color 41 and better, leaf 2-5, staple 36 and longer,
mike 35-47, strength 28-35, and uniformity 78-82 sold for around 82.75 cents, same terms as above.
�
A light volume mixed lot containing color 43 and better, leaf 2-7, staple 35 and longer, mike 25-43,
strength 26-32, uniformity averaging 79.9, and 75 percent extraneous matter sold for around 68.00 cents,
same terms as above.
West Texas
�
An even-running lot containing a light volume of color 11 and 21, leaf 1 and 2, staple 36 and 37,
mike 42-45, strength 31-34, and uniformity 78-82 sold for around 83.50 cents per pound, FOB car/truck
(compression charges not paid).
�
A light volume containing color 33, leaf 4 and 5, staple 35, mike 27-33, strength 27-30, uniformity
78-81, and 75 percent extraneous matter sold for around 66.25 cents, same terms as above.
�
A mixed lot containing a light volume of color 85 and better, leaf 4 and 5, staple 34 and longer,
mike 25-28, strength 26-32, uniformity 76-79, and 50 percent extraneous matter sold for around 64.50 cents,
same terms as above.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and demand were light. Average local prices were
lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries
were moderate. West Coast port congestion remains a concern, but slight improvements were noted.
Different variants of the COVID-19 virus worldwide slowed economic progress. In the U.S., various
stimulus programs increased consumer spending.
Hot and dry conditions continued. The crop made good progress in the DSW. Fieldwork was active with
irrigations. Drought conditions continued to worsen in cotton-growing areas of New Mexico and
El Paso, TX. The DSW is hopeful for a better monsoon season this summer. Producers and industry
attended virtual cotton meeting events.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Average local prices were lower.
No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate.
Shipping cotton remains a concern, due to West Coast port congestion. Different variants of the
COVID-19 virus worldwide slowed economic progress. Various government stimulus programs boosted
states� economic recovery efforts.
Sunny skies prevailed with temperatures in the high 80s to mid-90s. Fieldwork was active.
Producers created furrows and prepared for first irrigations. Weed control was on-going with herbicide
applications. No significant insect pressures were reported. Producers and industry attended virtual cotton meeting events.
American Pima (AP)
Spot cotton trading was slow. Supplies and demand of 2020-crop were moderate. Average local
prices were higher. No forward contracting or domestic mill activity was reported. Foreign
mill inquiries were light to moderate. Offerings of 2020-crop cotton continued, and prices
were firm. West Coast port congestion and COVID-19 variants in key cotton foreign ports remains
a concern. Shippers managed split shipments and rolled bookings.
Hot, dry conditions prevailed in the Far West. Skies were partly cloudy to sunny with temperatures
in the high 80s to high 90s. No moisture was recorded in the period. The crop made good progress
throughout the region. Producers prepared for first irrigations. Producers and industry attended
virtual cotton meeting events.
Trading
Desert Southwest
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No trading activity was reported.
San Joaquin Valley
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No trading activity was reported.
American Pima
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A light volume of mostly color 3, leaf 3, and staple 48 and longer was sold.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #3
FOR UPLAND COTTON
May 6, 2021
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 13, 2021, allowing
importation of 8,126,524 kilograms (37,324 bales of 480-lbs) of upland cotton.
Quota number 3 will be established as of May 13, 2021 and will apply to upland cotton
purchased not later than August 10, 2021 and entered into the U.S. not later than November 8, 2021.
The quota is equivalent to one week's consumption of cotton by domestic mills at the
seasonally-adjusted average rate for the period December 2020 through February 2021, 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.