Mp_cn812 May 27, 2022 Weekly Cotton Market Review Spot quotations averaged 483 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 137.47 cents per pound for the week ending Thursday, May 26, 2022. The weekly average was down from 142.30 cents last week, but up from 78.50 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 140.16 cents Wednesday, May 25 to a low of 135.61 cents Thursday, May 26. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 26 totaled 1,832 bales. This compares to 2,398 reported last week and 744 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,616,392 bales compared to 1,362,296 bales the corresponding week a year ago. The ICE July settlement price ended the week at 140.61 cents, compared to 147.70 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. The COVID-19 Pandemic continues to disrupt labor availability and logistics, but cities and locales have been easing COVID-19 restrictions. Mostly cloudy conditions prevailed across the lower Southeast during the week. Daytime high temperatures were in the upper 70s to low 80s as a cool front moved across the region. Widespread thunderstorms brought moisture to areas throughout Alabama, the Florida Panhandle, and Georgia during the week. Weekly accumulated rainfall totals measured 1 to 2 inches, with heavier accumulations observed in some locales. The moisture helped reduce droughty conditions and enhanced seed germination. Planters remained idle as the wet weather interrupted planting and fieldwork. A period of dry weather was needed to allow producers to finish sowing ahead of crop insurance deadlines. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released May 23, planting advanced to 74 percent in Alabama and 59 percent in Georgia – figures near the five-year average. A mix of sunny to cloudy conditions were observed across the upper Southeast during the period. Daytime high temperatures were mostly in the 80s. Scattered thunderstorms brought moisture to areas throughout the Carolinas and Virginia. Weekly accumulated rainfall totals measured 1 to 2 inches, with locally heavier downpours observed in some areas. The moisture enhanced seed germination and invigorated emerging seedlings. The wet weather interrupted planting and fieldwork activity. According to NASS, planting advanced to 68 percent in North Carolina, 65 percent in South Carolina, and 54 percent in Virginia. Textile Mill Domestic mill buyers inquired for a moderate volume of 2022-crop cotton, color 51 and better, leaf 5 and better, and staple 34 and longer for fourth quarter 2022 through first quarter 2023 delivery. No sales or additional inquiries were reported. Yarn demand remained good. Mills continued to produce personal protective equipment for frontline workers and consumers. Demand through export channels was good. Agents throughout the Far East inquired for any discounted styles of cotton. 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 inactive. No forward contracting was reported. The COVID-19 virus continues to cause major disruptions to our society in general, as well as international marketing channels, domestic supply chains, and the labor force overall. Overcast to partly cloudy weather prevailed during most of the week. Daytime high temperatures were in the 60s to 80s, very near seasonal averages. Overnight low temperatures were in the 50s and 60s. Severe weather brought high winds and heavy rain as a cold front moved through the region. Accumulated moisture measured from 2 to more than 4 inches in most areas, hindering outdoor activities in a few places. Planting progressed at a good rate between rain events. Many fields have been planted, most are germinating, and producers have stated it is the best start in years. According to the National Agricultural Statistics Service’s Crop Progress report, released on May 23, planting advanced to 74 percent complete in Arkansas, 85 in Missouri, and 78 percent in Tennessee. The figures for Missouri and Tennessee were about 2 weeks ahead of the five-year average. Virtual and in-person industry meetings were being planned and attended. 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 virus continues to cause major disruptions to our society in general, as well as international supply chains and the worldwide labor force. Favorable weather conditions in most areas allowed planting to progress at a good rate around rain showers. Daytime high temperatures were in the 70s and 80s. Overnight low temperatures were in the 50s and 60s. Up to 2 inches of rain were reported in cotton-producing areas. Several producers in both Louisiana and Mississippi reported delays, some due to excessively dry conditions, others due to rain showers in their specific areas. Isolated, heavy thunderstorms could result in the replanting of a few fields, or parts of fields, due to wash outs and flooding. A localized hailstorm and blowing sand caused some damage to cotton seedlings in Franklin Parish, LA. According to the National Agricultural Statistics Service’s Crop Progress report, released on May 23, planting was virtually complete in Louisiana at 95 percent and 81 percent in Mississippi. The figures were at least 2 weeks ahead of the five-year average. Many fields were up to a stand. Virtual and in-person industry meetings were being planned and attended. Trading North Delta • No trading activity was reported. South Delta • No trading activity was reported. Southwestern Markets Regional Summary East Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. The U.S. COVID-19 Pandemic status continues. Temperatures were in the mid-80s to mid-90s in east and south Texas. Scattered thunderstorms produced up to 1 inch of moisture in south Texas. The Rio Grande Valley received timely showers mid-week that helped with crop progress. Hail was also received, but no damage was reported. Fields were blooming. Local sources reported lack of moisture slowed crop progress in the Coastal Bend. Dryland and irrigated acreage advanced, but rain is needed for boll growth. Sources reported plants were not as tall as they should be at this time. Moisture received has arrived a little too late for some producers. Some Coastal Bend fields were zeroed out by crop insurance adjusters. The USDA announced 9 Texas counties in the Coastal Bend and Upper Coast are designated natural disaster areas due to drought. In the Blackland Prairies, cotton was beginning to square. Local experts reported planting in Kansas gained momentum and was nearly completed. Beneficial rain from the previous week provided sufficient moisture to complete planting activities in central and eastern Kansas. Some western producers dry planted and prayed for rains. Mother Nature delivered as parts of western and central Kansas received heavy rainfall late in the week. Precipitation accumulations were around 3 inches. River flood warnings were issued. On April 18, the Kansas governor approved the Kansas Cotton Boll Weevil Program. Monitoring for the pests to begin this growing season. Scattered showers were received in cotton-growing areas of Oklahoma. Around one-half of an inch up to 1 inch was measured. The rain was welcomed, but much more is needed. According to the U.S. Drought Monitor, drought conditions were eased somewhat for Oklahoma, but the western half remained in the severe-to-extreme drought status. Producers used center-pivot irrigation to add moisture. There is not enough water in the lake irrigation district to allow for flood irrigation. Oklahoma continues to need deep soil moisture. Planting deadlines are June 10 for irrigated fields and June 20 for dryland acreage for southwestern Oklahoma. Warehouses were very busy shipping cotton as more trucks became available. They are much busier than the first quarter and working weekends to move cotton. West Texas Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Trading of CCC-loan equities was inactive. Foreign mills inquiries were light. The U.S. remains in COVID-19 Pandemic status. Temperatures were in the 70s and 80s. Localized thunderstorms produced 2 to 3 inches of welcomed rainfall. Rainfall came fast and some flooding was reported in communities. A few counties had strong winds and tornados were reported in field areas. Some damage to irrigation systems and barns were reported. The National Weather Service reported Lubbock rainfall totals at near 4 inches for the year, that is around 1.86 inches below normal for this time of year. Areas west and south of Lubbock received little moisture and it was quickly absorbed. Sources reported soil moisture profile is very low. No deep moisture is present. Producers are dry planting to meet insurance deadlines. Trading East Texas • A light volume of Texas cotton color 31 and better, leaf 3 and better, staple 35-40, mike averaging 44.2, strength averaging 30.6, and uniformity averaging 81.2 sold for around 126.00 cents per pound, FOB warehouse (compression charges not paid). • A light volume of Kansas cotton color 21 and better, leaf 3 and better, staple 33 and 34, mike averaging 41.3, strength averaging 31.4, and uniformity averaging 80.1 sold for around 132.00 cents, FOB car/truck (compression charges not paid). West Texas • Light volumes of mixed lots mostly color 21 and better, leaf 2 and better, staple 33-40, mike averaging 39.4, strength averaging 31.0, uniformity averaging 80.0, with 50 percent extraneous matter traded for 135.50-136.00 cents per pound, FOB car/truck (compression charges not paid). • Similar mixed lots containing color 31 and better and low mike traded for around 133.00 cents, same terms as above. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting was reported. Most producers remained on the sidelines and monitored early crop progress as well as the volatile cotton market before committing additional bales for contract. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status. Central Arizona temperatures were in the high 90s to mid-100s. Air quality alerts are in effect as high pressure brought dangerous heat. The Arizona crop advanced. The Yuma crop made good progress as the crop was setting bolls. Producers irrigated the crop to help reduce heat stress. The crop made good progress throughout the DSW. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were lower. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status. High temperature records were broken in some areas of the SJV as daytime highs reached 102 degrees on Wednesday, May 25. The crop responded to the heat and made good progress. Temperatures were on the way down in the near-term forecast. Producers irrigated the crop to combat heat stress. American Pima (AP) Spot cotton trading was inactive. Supplies were light. Demand was very good. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were moderate. The U.S. continues in COVID-19 Pandemic status. Drought conditions continued throughout the Far West. Excessive heat warnings and air quality alerts are in effect as high pressure brought dangerous heat. Temperatures were above average for much of the region in the low 100s. Far West producers reported good progress. In the San Joaquin Valley of California many growers began first irrigation to the crop. Safford Valley contacts in Arizona reported that around 90 percent of the crop planted in the area was AP. No pest pressures were reported. Save the date: The Visalia Classing Office will host the annual American Pima Guide Box Matching on July 20. 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 #6 FOR UPLAND COTTON May 26, 2022 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 June 2, 2022, allowing importation of 9,898,391 kilograms (45,462 bales of 480-lbs) of upland cotton. Quota number 6 will be established as of June 2, 2022 and will apply to upland cotton purchased not later than August 30, 2022 and entered into the U.S. not later than November 28, 2022. The quota is equivalent to one week's consumption of cotton by do-mestic mills at the seasonally-adjusted average rate for the period January 2022 through March 2022, 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.