Mp_cn812
January 15, 2021
Weekly Cotton Market Review
Average spot quotations were up 118 points from 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
76.52 cents per pound for the week ending Thursday, January 14, 2021. This is the
highest weekly average since week ending September 13, 2018 when it was 78.98 cents.
The weekly average was up from 75.34 cents last week and from 66.49 reported the
corresponding period a year ago. Daily average quotations ranged from a low of
75.41 cents Friday, January 8 to a season high of 77.34 cents Tuesday, January 12.
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended
January 14 totaled 79,659 bales. This compares to 67,350 reported last week and 126,308
spot transactions reported the corresponding week a year ago. Total spot transactions
for the season were 1,060,490 bales compared to 1,104,831 bales the corresponding
week a year ago. The ICE March settlement price ended the week at 81.15 cents,
compared to 79.76 cents last week.
Southeastern Markets Regional Summary
Spot cotton trading was active. Supplies were moderate. Demand was good.
Producer offerings were heavy. Average local spot prices were higher. Trading
of CCC-loan equities was inactive. Producers took advantage of higher ICE
futures to book a moderate volume of 2021-crop cotton. The COVID-19 Pandemic
continues to negatively affect cotton demand and disrupt supply chains.
Mostly cloudy and overcast conditions prevailed throughout the period. Seasonably
cold daytime temperatures were in the low 40s to mid-50s. Shower activity brought
moderate precipitation to areas of north Alabama and north Georgia. Weekly accumulated
rainfall totals measured from 1 to 2 inches. Farther south, lesser accumulations of
one-quarter to one-half of an inch of moisture were observed. Fieldwork was
delayed by wet conditions and saturated soils. Gins continued processing modules,
but several had finished pressing operations for the season or gone to gin days.
Producers, ginners, and industry members attended the Southern Southeastern virtual meeting.
A mix of sunny to mostly cloudy and overcast conditions were observed across the
upper Southeast during the period. Daytime high temperatures were in mid-40s to
mid-50s. Widespread showers brought moderate precipitation to areas of the eastern
Carolinas and Virginia. Weekly accumulated rainfall totals measured from one-half
of an inch to two inches of moisture. Fieldwork and harvest activities were delayed
by the wet weather. Ginning continued; a few gins had finished operations for the
season and some others had gone to gin days. Producers, ginners, and industry
members attended the Southern Southeastern virtual meeting.
Textile Mill
Buyers for domestic mills inquired for a moderate volume of color 41, leaf 4, and
staple 34 and 36 for April through June delivery. No sales were reported. Mill
buyers also made initial inquiries for 2021-crop cotton, color 41, leaf 4, and
staple 34 and 36 for November 2021 through March 2022 delivery. No sales were
reported. Reports indicated that mills continued to incrementally increase operating
schedules as warranted by increased finished product demand. Yarn demand was good.
Mills continued to produce personal protective equipment for frontline workers and military supplies.
Demand through export channels was moderate. Chinese and Vietnamese mill buyers
inquired for a moderate volume of color 31 and 41, leaf 3, and staple 36 and 37 for
February through December shipment. No sales were reported. Agents for mills in
Mexico inquired for a moderate volume of color 42 and 51, leaf 4, and staple 34 and
longer for April through September shipment. No sales were reported.
Trading
�
Even-running lots containing color 31 and 41, leaf 3 and 4, staple 37-39, mike 37-49,
strength 28-31, uniformity 80-83, and 25 percent seed coat fragments sold for 80.25
to 80.75 cents per pound, FOB car/truck (Rule 5, compression charges paid).
�
A heavy volume of color 41 and 51, leaf mostly 3 and 4, staple 37-39, mike 43-49,
strength 28-31, and uniformity 80-82 sold for around 100 points off ICE March futures,
same terms as above.
�
Mixed lots containing mostly color 41 and 51, leaf 3 and 4, staple 37 and 38, mike 37-42,
strength 28-31, uniformity 80-82, and 100 percent seed coat fragments sold for 650 to
700 points off ICE March futures, same terms as above.
�
Even-running lots containing color mostly 41, leaf 3 and 4, staple 37 and 38, mike 37-49,
strength 29-31, and uniformity 80-82 sold for around 81.25 cents, FOB car/truck, Georgia
terms (Rule 5, compression charges paid, 30 days free storage).
�
A moderate volume of color 31 and 41, leaf 3 and 4, staple 36-38, mike 37-49, strength 30-32,
and uniformity 81-83 sold for around 200 points on ICE March futures, same terms as above.
�
Heavy volume mixed lots containing color mostly 31 and 41, leaf 2-4, staple 37 and longer,
mike 37-49, strength 28-31, uniformity 80-82, and 25 percent seed coat fragments sold for
around 125 points on ICE March futures, same terms as above.
Trading
�
A heavy volume of color 31 and 41, leaf 3 and 4, staple 35 and longer, mike 43-49,
strength 28-32, uniformity 80-83, and 25 percent seed coat fragments sold for around
50 points on ICE March futures, same terms as above.
�
A moderate volume of color 41, leaf 3 and 4, staple 36 and 37, mike 43-49, strength 27-30,
uniformity 79-81, and 50 percent seed coat fragments sold for around 200 points off ICE March
futures, same terms as above.
�
A light volume of color 41 and 51, leaf 4 and 5, staple 38 and 39, mike 43-47, strength 28-31,
uniformity 80-82, and 50 percent seed coat fragments sold for around 350 points off ICE
March futures, same terms as above.
South Central Markets Regional Summary
North Delta
Spot cotton trading was slow. Supplies of available cotton were moderate. Demand
was light. Average local spot prices were higher. Trading of CCC-loan equities
was inactive. No forward contracting was reported. The COVID-19 Pandemic continues
to negatively impact the overall global economy and daily infection rates were steadily
increasing in many areas.
Mostly cloudy skies and seasonably cold temperatures dominated the weather pattern
during the week. Highs were generally in the 30s, then warmed to the 50s late week.
Overnight lows dropped into the low 20s briefly, then returned to the 30s. Up to 1
inch of precipitation was recorded during the period, including reports of 3 to 5
inches of snow, which remained on the ground in some areas due to the sub-freezing
temperatures. No field activities were reported. Several gins continued to work through
a few modules that were arriving at their yards daily. Due to the high rate of
infection and the accompanying restrictions of COVID-19 social distancing requirements,
the Mid-South Farm and Gin Show will include both virtual and in-person activities. The
virtual platform will be available February 25, and the actual event will take place
February 26-27. The World Agricultural Supply and Demand Estimates, released on January 12,
lowered the 2020-crop production estimate to 14.95 million statistical bales, down 1
million bales from the previous projection of 15.95 million. According to local experts,
this reduction in supply has help lift prices on the ICE futures trading platform.
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 Pandemic continues to negatively
impact economic activity around the world and daily infection rates were steadily
increasing in many areas.
Cloudy to partly cloudy conditions prevailed during the week. Temperatures were seasonably
cool for the most part, but lows dropped into the 20s as another cold front moved through
the region. Daytime highs were in the 30s and 40s. The cold front brought a wintry mix of
rain and snow to the territory. Some areas reported as much as 5 inches of snow. No field
activities were reported due to cold and wet weather. The Rayville Classing Office
classed cotton samples on a day-by-day basis. Due to the high rate of infection and the
accompanying restrictions of COVID-19 social distancing requirements, the Mid-South Farm
and Gin Show will include both virtual and in-person activities. The virtual platform
will be available February 25, and the actual event will take place February 26-27. The
World Agricultural Supply and Demand Estimates, released on January 12, lowered 2020-crop
production to 14.95 million statistical bales, down 1 million bales from the December
2020 estimate of 15.95 million. Local experts indicated that this smaller crop estimate
has stimulated prices of ICE futures.
Trading
North Delta
�
A moderate volume of forfeited CCC-loan cotton, color mostly 41, leaf 4 and better,
staple 36 and longer, mike averaging 45.6, strength averaging 31.1, and uniformity
averaging 81.6, with 10 percent extraneous matter (plastic) traded for 67.75 cents
per pound, FOB warehouse (compression charges not paid).
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 very good. Average local spot prices were higher. Producer interest
in forward contracting was moderate. Trading of CCC-loan equities was active.
Foreign inquiries were active. Interest was best from Korea, Taiwan, and Vietnam.
The COVID-19 Pandemic continued to influence market uncertainty and impact global
cotton demand. Medical communities struggled with positive case surges. Vaccination
clinics were held.
In Corpus Christi, cool, crisp conditions were reported. Daytime temperature highs
were in the mid-40s to low 50s, and overnight lows in the upper 30s to mid-50s.
Parts of the Rio Grande Valley and south Texas received up to 2 inches of beneficial
rainfall. End of season ginning continued. Producers planned the next cropping season
and considered variety selections and trait packages. Some contemplated alternative
crops. The Texas A&M Agrilife Extension hosted the 27th Annual Rio Grande Valley Cotton
and Grain Pre-Plant Conference via Zoom. In eastern Texas, widespread rainfall and
snow was received that improved soil moisture levels. Ginning moved to gin days and
was slowed because of soggy conditions. Most gins were done for the season.
In Kansas, harvesting was estimated to be around 95 percent completed and a cold front
slowed field activity. Ginning continued, but was interrupted by high winds for a few
hours during the period. Ginning was around 90 percent done. In Oklahoma, light amounts
of beneficial snow and rain were received. Harvesting was complete. Gins were busy pressing final modules.
West Texas
Spot cotton trading was active. Supplies and producer offerings were heavy.
Demand was very good. Average local spot prices were higher. Producer interest
in forward contracting was moderate. Trading of CCC-loan equities was active. Foreign
inquiries were moderate. Interest was best from Korea, Taiwan, and Vietnam. The
COVID-19 Pandemic continued to impact commodity markets and global cotton demand.
Infection spikes continued to pressure local medical institutions and resources.
Vaccination distributions were underway.
Winter storm Lana brought up to 9 inches of snow and precipitation. The snow began
a slow melt with daytime temperature highs in the low 30s to low 60s, and overnight
temperatures in the upper teens to mid-30s. Snow was present on the ground at the
end of the reporting period. Producers appreciated the moisture that will help improve
soil conditions. Windy conditions brought up to 55 mile per hour gusts on January 14
following a dry cold front that moved across the region. The gins in operation continued
pressing services and submitting samples to the Lubbock and Abilene Classing Offices for
grading services. The Lamesa Classing Office finalized grading on January 13. Meetings
were held in person and offered virtually to include more industry members.
Trading
East Texas
�
In Texas, a heavy volume of mostly color 43 and better, leaf 7 and better, staple 34-37,
mike averaging 42.9, strength 26-34, uniformity 78-82, and 25 percent extraneous matter
sold for around 67.75 cents per pound, FOB warehouse (compression charges not paid).
�
In Kansas, a moderate volume of color 32 and better, leaf 3, staple 36 and 37, mike 34-43,
strength 29-31, uniformity 79-81, and 25 percent extraneous matter sold for around 76.75
cents, FOB car/truck (compression charges not paid).
�
In Oklahoma, even-running lots containing a heavy volume of color 21 and 31, leaf 4 and
better, staple 38 and longer, mike 34-44, strength 32-37, and uniformity 79-82 sold for
79.50 to 80.00 cents, same terms as above.
�
A heavy volume of CCC-loan equities traded for 4.75 to 20.00 cents.
West Texas
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Even-running lots containing a heavy volume of color 11 and 21, leaf 1 and 2, staple 37
and 38, mike 35-49, strength 28-33, and uniformity 77-82 sold for 82.00 to 82.75 cents
per pound, FOB car/truck (compression charges not paid).
�
A heavy volume mixed lot containing color 42 and better, leaf 7 and better, staple 33-38,
mike 30-52, strength 28-33, uniformity 79-81, and 50 percent extraneous matter sold for
around 70.00 cents, same terms as above.
�
A mixed lot containing a heavy volume of color 32 and better, leaf 7 and better, staple 33
and longer, mike 24-53, strength 24-32, uniformity 77-80, and 25 percent extraneous matter
sold for around 63.75 cents, same terms as above.
�
A heavy volume of CCC-loan equities traded for 3.00 to 20.25 cents.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was active. Supplies and producer offerings were heavy
as ICE futures prices reached over 81.00 cents in the period. Demand was
very good. Average local spot prices were higher. Trading of CCC-loan equities was
slow. Producers delivered previously contracted cotton to merchant and cooperative
marketing pools. Forward contracting of 2020-crop cotton was active. No domestic
mill activity was reported. Foreign mill inquiries were good. The COVID-19 Pandemic
continues to pressure the U.S. economy and labor.
Temperatures were in the high 60s and 70s for central Arizona. High temperatures
varied in the 40s to 60s for New Mexico and El Paso, TX. No rainfall was recorded for
the region in the period. Keeping fingers crossed as next week�s forecast shows a
possibility of showers in the DSW. Ginning continued.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were moderate. Average local
spot prices were higher. Producers delivered previously contracted cotton to merchant
and cooperative marketing pools. The COVID-19 Pandemic continues to pressure the U. S.
economy and labor. No forward contracting or domestic mill activity was reported.
Foreign mill inquiries were light.
Cold, foggy mornings were prevalent. Temperatures were in the high 50s to low 60s.
A high-pressure system pushed rain into northern California. No rainfall was received
in the Valley. Ginning continued.
American Pima (AP)
Spot cotton trading was inactive. Supplies of 2020-crop cotton were heavy.
Demand was very good. Producers delivered previously contracted cotton to merchant
and cooperative marketing pools. Average local spot prices were steady. No forward
contracting or domestic mill activity was reported. Foreign mill inquiries were moderate.
Inquiries were best from China, India, and Vietnam. Shippers offering prices were firm
for 2020-crop cotton. According to the Foreign Agricultural Service, US Export Sales
report 595,800 bales of Pima cotton were committed for export for the week ending
January 7. This compares to 387,900 bales the previous year. New sales were registered
at 37,400 bales. The COVID-19 Pandemic slowed U.S. economic recovery and the progress of global economies.
Dry, sunny conditions continued throughout the region. No rainfall was recorded.
A high-pressure system off the coast of California kept rain from entering the San
Joaquin Valley. The cotton industry was concerned about lack of winter moisture.
Ginning continued uninterrupted.
Trading
Desert Southwest
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A heavy volume of Arizona cotton mostly color 11 and 21, leaf 2 and better, staple 35
and longer, mike 40-53 sold for 80.00 to 81.00 cents per pound, uncompressed, FOB warehouse.
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A light volume of New Mexico cotton, mostly color 21 and better, leaf 3 and better, and
staple 35 and longer sold for 79.00 cents, FOB car/trucks (compression charges not paid).
�
Similar lots containing staple 33 sold for around 75.00 cents, same terms as above.
�
A light volume of 2020-crop CCC-loan equities sold for 19.75 cents.
San Joaquin Valley
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No trading activity was reported.
American Pima
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A light volume of 2019-crop CCC-Catalog cotton, color 1, leaf 1 and 2, staple mostly 50,
mike averaging 43.9, strength averaging 46.8, and uniformity averaging 86.9 sold for
100.10 cents per pound, FOB warehouse (compression charges not paid).
USDA ANNOUNCES SPECIAL IMPORT QUOTA #13
FOR UPLAND COTTON
January 14, 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 January 21, 2021,
allowing importation of 9,464,255 kilograms (43,469 bales of 480-lbs) of upland cotton.
Quota number 13 will be established as of January 21, 2021 and will apply to upland
cotton purchased not later than April 20, 2021 and entered into the U.S. not later than
July 19, 2021. The quota is equivalent to one week's consumption of cotton by domestic
mills at the seasonally-adjusted average rate for the period September 2020 through
November 2020, 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.