USDA U.S. Department of Agriculture - April 26, 2024
Mp_cn206
April 26, 2024
Weekly Cotton Market Review
Spot quotations averaged 103 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 73.20 cents per pound for the week ending Thursday, April 25,
2024. The weekly average was down from 74.23 cents last week and from 76.93 cents reported the corresponding period a year ago. Daily
average quotations ranged from a high of 74.17 cents Monday, April 22 to a low of 72.76 cents Wednesday, April 24. Spot transactions
reported in the Daily Spot Cotton Quotations for the week ended April 25 totaled 680 bales. This compares to 4,406 bales reported last
week and 6,570 bales reported the corresponding week a year ago. Total spot transactions for the season were 814,037 bales compared to
598,354 bales the corresponding week a year ago. The ICE July settlement price ended the week at 81.08 cents, compared to 80.61 cents
last week.
Southeastern Markets Regional Summary
Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was moderate.
Average local spot prices were lower. Trading of CCC-loan equities was inactive.
Cloudy and overcast conditions during the weekend gave way to sunny skies and breezy weather later in the week across the lower Southeast.
Seasonably warm daytime temperatures were in the 70s and 80s. Widespread showers brought light to moderate moisture to areas throughout
Alabama and Georgia. Weekly accumulated precipitation totals measured from trace amounts to around 1 inch of moisture. Fieldwork advanced,
but fertilizer applications were hindered in some areas due to high winds. Planting was underway on a limited basis, but some producers were
waiting to begin sowing due to cool overnight temperatures.
A mix of sunny to overcast conditions was observed across the upper Southeast. Daytime high temperatures varied from the 60s to 80s. Light to
moderate precipitation was received across the region over the weekend and early in the week. Precipitation totals measured from trace amounts
to around 1 inch of moisture for the week across the eastern Carolinas and Virginia. Breezy conditions reduced soil moisture and abnormally dry
conditions expanded in North Carolina. Producers applied herbicides and fertilizer in preparation for planting.
Textile Mill
Domestic mill buyers inquired for a moderate volume of color 41, leaf 3, and staple 36 and longer for June through October delivery. No sales were
reported. No additional inquiries were reported. Mill buyers maintained a cautious undertone as they limited production schedules to maintain
balanced yarn inventories.
Demand through export channels was moderate. Agents for mills in Taiwan inquired for a moderate volume of Pima cotton, color 2, leaf 2, and staple
46 for June shipment. Agents for mills in Indonesia inquired for a moderate volume of color 31, leaf 3, staple 36 and 37 for August through October
shipment. No sales were reported.
Trading
•
No trading activity was reported.
South Central Markets Regional Summary
North Delta
Trading of spot cotton was inactive. Trading of CCC-loan equities was inactive. Supplies of available cotton
were light. Demand was light. Average local spot prices were lower. No forward contracting was reported.
Partly cloudy conditions with light precipitation characterized the weather pattern during the week, although only trace amounts of moisture were
reported in most areas. Daytime temperatures varied from the low 60s to the mid-80s throughout the reporting period. Overnight lows dipped into the
30s and 40s, more than 10 degrees below average for this time of the year. Local experts reported that cold and saturated soils hindered outdoor
activities in a few locales. Fieldwork was accomplished in areas where soils were firm enough to support equipment. According to the National
Agricultural Statistics Service’s Crop Progress report, released on April 22, planting advanced slowly to 6 percent in Arkansas, 3 in Missouri, and
was underway at 1 percent in Tennessee. Planting was expected to gain momentum as fields continued to dry. Virtual and in-person industry meetings
were being planned and attended at state and national level.
South Delta
Spot cotton trading was inactive. Trading of CCC-loan equities was inactive. Supplies of available cotton
were light. Demand was light. Average local spot prices were lower. No forward contracting was reported.
Partly cloudy conditions with light precipitation characterized the weather pattern during the week. Up to 1 inch of moisture was reported in most areas.
Daytime temperatures varied from the mid-60s to the mid-80s throughout the period. Overnight lows dipped into the low 40s, about 15 degrees below average
for this time of the year. River flood warnings remained in effect in many areas. Local experts reported that saturated soils prevented producers from engaging
in outdoor activities in a few locales. Fieldwork, including the application of fertilizers and burndown chemicals, was accomplished in areas where soils were
firm enough to support equipment. According to the National Agricultural Statistics Service’s Crop Progress report, released on April 22, planting was underway
at 5 percent in Louisiana and 1 percent in Mississippi. Virtual and in-person industry meetings were being planned and attended at state and national level.
Trading
North Delta
•
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 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 mill inquiries were moderate. Interest was best from China, Pakistan, and Turkey.
In East Texas, predominately sunny to partly cloudy skies prevailed. Daytime high temperatures remained in the mid-to-upper 70s and low 80s. Overnight temperature
lows ranged from the upper 40s to the low 70s by the end of the reporting period. Rain showers produced over three-quarters of an inch of moisture in some areas of
central Texas, and chances for additional showers were in the forecast. In the Blackland’s, planting activities continued to progress in fields dry enough to support
equipment. Local sources reported recently planted cotton was emerging and in good condition. In South Texas, thundershowers brought over three-quarters of an inch
of beneficial precipitation to parts of the Rio Grande Valley (RGV). Daytime high temperatures ranged from the low 70s to the low 90s, with nighttime temperature lows
in the low 60s to the mid-to-upper 70s. Producers in the Upper Coast worked to finalize planting ahead of the final planting dates for insurance. Local experts
reported high thrips populations in emerging cotton in some fields in the Upper Coast. Pesticide treatments were applied in fields in the RGV as windy conditions
allowed.
West Texas-Kansas-Oklahoma
Spot cotton trading was inactive. 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 mill inquiries were moderate. Interest was best from China, Pakistan, and Turkey.
In Texas, partly cloudy skies and windy conditions were observed. Daytime high temperatures were in the mid-60s to low 80s, with nighttime temperature lows in the
mid-40s to the mid-to-upper 50s. Light accumulations of rainfall were reported in parts of the Northern Low Plains. Fieldwork continued to make good progress as
producers prepped fields for planting. Warm nighttime temperatures are needed to increase soil temperatures to optimal levels before sowing activities begin.
In Kansas, windy but mostly favorable conditions gave way to chances for inclement weather including large hail and damaging winds late in the week. Daytime high
temperatures were in the mid-60s to the upper 80s, with nighttime temperature lows in the upper 40s to the mid-50s. Fieldwork was underway, and producers continued
to weigh their options to determine the number of cotton acres to be planted. Rainfall is needed to improve sub-soil moisture in parts of Kansas. In Oklahoma,
partly cloudy skies and gusty winds were prevalent during the reporting period. Fieldwork was active. Producers applied fertilizer to fields and prepped beds.
Planting is anticipated to begin in next week. Chances for precipitation are in the forecast and would be beneficial to improve soil moisture as planting nears.
Trading
East Texas-South Texas
•
No trading activity was reported.
West Texas-Kansas-Oklahoma
•
In Texas, a lot containing a light volume of color 22 and better, leaf 2-4, staple 35-37, mike averaging 30.7, strength
averaging 32.1, and uniformity 80.1 sold for around 68.00 cents per pound, FOB car/truck (compression charges not paid).
•
Lots containing a light volume of color 21 and 31, leaf 2 and 3, staple 33-35, mike 37-52,
strength 26-31, and uniformity 78-81 sold for 63.00 to 65.00 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. Average local spot prices were lower. Foreign mill inquiries were light.
In Arizona, cotton planting was at 42 percent and 13 percent emergence, according to the National Agricultural Statistics Service’s Arizona
Crop Progress report released on April 22. In Yuma, AZ the crop progressed well under sunny, warm conditions with daily temperatures in the
upper 90s and nighttime lows in the mid-60s. In New Mexico, temperatures took a dive with daytime temperatures in the 50s in some areas. No
rain was recorded during the period. Despite the cooler weather, cotton planted reached 23 percent, up from 8 percent last week, according
to the National Agricultural Statistics Service’s New Mexico Crop Progress report released on April 22. Temperatures in El Paso, TX were in
the mid-to-upper 80s, which was beneficial in warming soils to optimal conditions for planting. No rain was recorded in the period.
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 lower. Foreign mill inquiries were light.
Weather conditions were mostly sunny, with daily temperatures in the 80s and nighttime lows in the 50s. Another cold front is expected in the
nearby forecast, which will cool daily temperatures into the upper 60s over the weekend. No rain was reported during the period. Planting
continues as weather allows. The California Department of Water Resources announced that water allocations were 40 percent of requested supplies
on April 25, up from 30 percent the previous month, due to Lake Oroville being 124 percent of average. The statewide snowpack was at 97 percent
of normal for April 27, and at 83 percent of the April 1 average. The average snow water equivalent is 21.6 inches.
American Pima (AP)
Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average
local spot prices were steady. Foreign mill inquiries were light. Interest was best from China and India. According to the Foreign Agricultural
Service, U.S. Export Sales report, 294,600 bales of Pima cotton were committed for export for the week ending April 18. This compares to 257,900
bales the previous year.
In the San Joaquin Valley, conditions were mostly sunny, with daily temperatures in the 80s. A cold front is expected in the nearby forecast, which
will once again cool temperatures. Producers continue to plant in haste as the planting deadline is in sight. In Yuma, AZ, the crop progressed well
under sunny conditions. In New Mexico, cooler temperatures continued, but planting progressed where possible. In Texas, planting began even though
temperatures in some areas continue to trend on the cooler side. The California Department of Water Resources announced that water allocations were
40 percent of requested supplies on April 25, up from 30 percent the previous month, due to Lake Oroville being 124 percent of average. The statewide
snowpack was at 97 percent of normal for April 27, and at 83 percent of the April 1 average. The average snow water equivalent is 21.6 inches.
Trading
Desert Southwest
•
No trading activity was reported.
San Joaquin Valley
•
No trading activity was reported.
American Pima
•
No trading activity was reported.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #2
FOR UPLAND COTTON
April 25, 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 May 2, 2024, allowing importation of
6,902,347 kilograms (31,702 bales of 480-lbs) of upland cotton.
Quota number 2 will be established as of May 2, 2024, and will apply to upland cotton purchased not later than July 30, 2024, and
entered into the U.S. not later than October 28, 2024. The quota is equivalent to one week's consumption of cotton by domestic mills at
the seasonally-adjusted average rate for the period December 2023 through February 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.
