Mp_cn812 September 30, 2022 Weekly Cotton Market Review Spot quotations averaged 821 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 89.25 cents per pound for the week ending Thursday, September 29, 2022. The weekly average was down from 97.46 cents last week and 97.22 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 93.22 cents Friday, September 23 to a season low of 85.91 cents Thursday, September 29. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 29 totaled 2,198 bales. This compares to 3,621 bales reported last week and 11,781 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 26,266 bales compared to 45,888 bales the corresponding week a year ago. The ICE December settlement price ended the week at 85.16 cents, compared to 96.54 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 were easing restrictions. A mix of sunny to partly cloudy conditions was observed across the lower Southeast during the period. Daytime high temperatures in the 80s cooled into the 70s late in the period. Scattered thunderstorms brought light to moderate precipitation to areas of north Alabama and north Georgia. Weekly accumulated rainfall totals measured from one-quarter of an inch to 1 inch of moisture. Hurricane Ian was downgraded to a tropical storm after slamming into the Florida Peninsula with damaging wind, heavy rainfall, and flooding. Producers in Georgia’s coastal counties are under a storm surge warning and are bracing for the potential of severe weather as the storm system tracks along the east coast. Harvesting was underway in fields that had already been defoliated, but local experts advised producers in these areas to suspend applying defoliants until the threat from the storm passes. Elsewhere in Alabama, the Florida Panhandle, and south Georgia producers were defoliating fields and harvesting was getting underway. Modules were accumulating on gin yards, and some gins had begun pressing operations for the season. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released September 26, bolls opening were at 74 percent in Alabama and Georgia; cotton harvested was at four percent in Alabama and three percent in Georgia. Partly cloudy conditions were observed across the upper Southeast during the period. Daytime high temperatures in the 80s dipped into the 60s and 70s late in the week. Localized showers brought light moisture to portions of cotton growing areas of the eastern Carolinas and Virginia. Precipitation totals measured from trace amounts to around one inch of moisture. Defoliation and harvesting advanced. In South Carolina, producers attempted to get as much cotton off the stalk as possible, as tropical storm Ian was projected to make landfall early Friday morning, and hurricane-force winds and heavy rainfall were expected. According to NASS, bolls opening were at 80 percent in North Carolina, 75 in Virginia, and 66 percent in South Carolina; cotton harvested was at five percent in South Carolina and two percent in North Carolina. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for March through October 2023 delivery. No sales were reported. Reports indicated that most mills had covered their raw cotton needs through early 2023. Yarn demand had moderated as buyers indicated finished product supplies were sufficient in retail sectors. Mills continued to produce personal protective equipment for frontline workers and consumers. Demand through export channels was moderate. 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 were light. Demand was very 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 negatively impact domestic and international marketing channels, consumer-goods supply chains, and the labor force overall. Warm daytime conditions prevailed throughout the region during the week, with temperatures in the 80s and 90s. A cooling trend mid-week brought overnight temperatures down to the low 50s. Light thundershowers brought less than one-half of an inch of precipitation to a few areas. The crop made good progress under favorable conditions. Boll opening advanced steadily in various parts of the territory. Defoliation gained momentum. Early-planted fields have been harvested, and a few gins with sufficient backlogs of modules had begun annual pressing activities. Classing operations have commenced for Dumas and Memphis. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report released on September 26, boll opening advanced to 90 percent complete in Arkansas, 66 in Missouri, and 57 percent in Tennessee. NASS reported that harvesting was underway in Arkansas at five percent and two percent in Missouri and Tennessee. Virtual and in-person 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 lower. Trading of CCC-loan equities was inactive. No forward contracting was reported. Domestic and international marketing channels, supply chains, and labor forces overall are still being negatively affected by the COVID-19 virus. Clear and warm daytime conditions prevailed throughout the region during the week, with temperatures in the 80s and 90s. A cold front mid-week brought overnight temperatures in the upper 40s. No rainfall was reported throughout the region. Defoliation was in full swing as the pace of boll opening continued to increase. Harvesting gained momentum throughout the region, and several gins had commenced operations thanks to plentiful modules on gin yards. Classing operations were underway in Rayville. According to the National Agricultural Statistics Service’s (NASS) Crop Progress report, released on September 26, boll opening advanced to 94 percent complete in Louisiana and 85 in Mississippi. NASS reported that harvesting had reached 23 percent completed in Louisiana and surged to 16 percent in Mississippi. 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 light. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were lower. Producers continued to deliver bales to fulfill contracts. Few new sales were reported. Producers were in sticker shock as ICE December futures remained below 90 cents and rejected bids. Producers’ price ideas were firm to higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Mills were on the sideline as consumer demand declined. The U.S. remained in COVID-19 Pandemic status. Temperatures were in the 80s and 90s in east and south Texas. Scattered showers were received in the Coastal Bend and south Texas. Precipitation amounts neared one-quarter of an inch. Harvesting continued in the Winter Garden. Ginning made good progress in the region. Local sources reported some Kansas and Oklahoma producers were shredding fields that were zeroed out by insurance adjusters. Some producers are weighing the economics of harvesting the crop. Gins, warehouses, merchants, and classing offices continued to revise their 2022-crop estimates. Initial harvesting began in the Wichita, Kansas area and in central Oklahoma. No ginning was reported. West Texas Spot cotton trading was inactive. Supply was light. Demand was weak. Average local spot prices were lower. Foreign mill inquiries were light. Mill interest was sidelined by lack of consumer demand. Temperatures were in the high 80s, with no rainfall recorded in the period. Beneficial rains received in August were a helpful boost for some of the irrigated acreage along with steady heat units in September, which helped form and fill bolls. Crop shredding was the most prominent field activity. Some irrigated acreage was failed, and most dryland acreage was lost. Several local sources recounted that after fields are shredded there is no lint or white fibers left in the field. Industry members re-evaluated crop estimates. Producers prepared for harvest. Trading East Texas • A moderate volume of color 31, leaf 3 and better, staple 36, mike 37-49, strength 28-33, and uniformity 79-82 sold for 98.00 cents per pound, FOB warehouse (compression charges not paid). • A moderate volume mixed lot of mostly color 31 and better, leaf 3 and better, staple 35-38, mike 37-49, strength 27-32, and uniformity 79-82 sold for 96.00 cents, same terms as above. • A light volume of mostly color 12 and 22, leaf 2 and better, staple 34, mike averaging 39.8, strength averaging 25.8, and uniformity averaging 79.1 sold for around 80.50 cents, same terms as above. • Similar lots containing strength averaging less than 25 grams per tex sold for 69.00 to 71.50 cents, same terms as above. West Texas • No trading activity was reported. 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 or domestic mill activity was reported. Foreign mill inquiries were light. The U.S. continues in COVID-19 Pandemic status. Temperatures were in the high 80s to low 100s in the DSW. Ginning continued without interruption in Yuma. Bolls were cracking open throughout the region. Defoliation activities expanded in central Arizona. Initial picking began. Producers prepared equipment prepared for harvest. 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. remains in COVID-19 Pandemic status. Unseasonably warm weather was the norm. Temperatures were in the high 90s, which were 7 to 10 degrees higher than average. No rainfall was received in the period. Defoliation activities advanced. Initial picking began early in the reporting period. No ginning was reported. Annual meetings were attended. American Pima (AP) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. Producers’ price ideas were firm for new-crop cotton. No forward contracting or domestic activity was reported. Foreign mill inquiries were light. According to the Foreign Agricultural Service, U.S. Export Sales report, 103,900 bales of Pima cotton were committed for export for the week ending September 22. The U.S. remains in COVID-19 Pandemic status. Temperatures ranged in the 80s to 100s throughout the Far West. Bolls were cracking open. Defoliation activities advanced in the San Joaquin Valley of California. Initial harvesting began. No ginning was reported. Local sources reported hail damage in a few west Texas fields. Producers prepared equipment for harvest. Annual meetings were attended. Trading Desert Southwest • No trading activity was reported. San Joaquin Valley • No trading activity was reported. American Pima • No trading activity was reported.