Mp_cn812 February 25, 2022 Weekly Cotton Market Review Spot quotations averaged 37 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 118.32 cents per pound for the week ending Thursday, February 24, 2022. The weekly average was down from 118.69 cents last week, but up from 86.90 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 119.16 cents Wednesday, February 23 to a low of 117.02 cents Thursday, February 24. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended February 24 totaled 34,584 bales. This compares to 29,496 reported last week and 16,250 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,416,826 bales compared to 1,247,695 bales the corresponding week a year ago. The ICE May settlement price ended the week at 119.16 cents, compared to 119.52 cents last week. Southeastern Markets Regional Summary Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were lower. Trading of CCC-loan equities was inactive. The COVID-19 Pandemic continues to disrupt labor availability and logistics. Vaccination doses were being distributed. Partly to mostly cloudy conditions were observed across the lower Southeast during the period. Seasonably cool temperatures over the weekend warmed into the 70s and 80s late in the week. Scattered shower activity brought 2 to 3 inches of moisture to areas of central Alabama and central Georgia, with heavier accumulations observed in northerly areas. According to the U.S. Drought Monitor, abnormally dry conditions expanded in southeast Alabama, the Florida Panhandle, and southern and coastal Georgia due to lack of moisture. Fieldwork advanced where soils were firm enough to support equipment. Producers shredded cotton stalks. Ginning was virtually complete; a few larger gins remained on gin days. Mostly cloudy conditions dominated the weather pattern across the upper Southeast during the week. Daytime high temperatures were in the 60s and 70s. Mostly dry conditions were observed in cotton growing areas along the eastern Carolinas and Virginia. According to the U.S. Drought Monitor, moderate drought conditions expanded across the Pee Dee region of the Carolinas and the Low Country of South Carolina. Field activities were uninterrupted. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for second and third quarter delivery. No sales were reported. No additional inquiries were reported. Reports indicated most mills had covered their raw cotton needs through early summer. Yarn demand remained good and mills continued to operate at capacity as allowed by labor availability. Mills continued to produce personal protective equipment for frontline workers and consumers. Demand through export channels was good. Domestic shippers maintained a cautious undertone due to logistics issues and backlogs at the ports. Demand was good throughout the Far East for any discounted styles of cotton. Trading • A moderate volume of color mostly 41 and 51, leaf 3 and 4, staple mostly 37 and longer, mike 37-43, strength 28-30, and uniformity 81-83 sold for around 125.00 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). • A moderate volume mixed lot containing color mostly 51, leaf 3 and 4, staple 36 and 37, mike 37-49, strength 27-30, and uniformity 82-83 sold for around 119.25 cents, same terms as above. • A heavy volume mixed lot containing color mostly 41 and 42, leaf 2-5, staple 35 and longer, mike 43-52, strength 28-31, and uniformity 80-82 sold for around 120.50 cents, FOB car/truck (Rule 5, compression charges paid). 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. Cotton was being delivered to fulfill contracts. 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. Winter weather prevailed during most of the report period. The daytime high temperatures climbed briefly into the 70s before a cold front dropped them back into the 30s. Overnight low temperatures were in the 30s to the low 50s. Skies were mostly overcast as an extended storm system brought heavy rains to the territory. The Memphis area recorded over 3 inches of rain, and flood warnings were in effect throughout the region. Virtual and in-person industry meetings were being planned and attended, including the Mid-South Farm and Gin Show. According to the U.S. Drought Monitor, drought conditions improved somewhat in the southern part of Arkansas. The rest of the region had adequate to surplus soil moisture. Fieldwork was underway in some areas as preparations for planting gained momentum. 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. Cotton was being delivered to fulfill contracts. The Omicron variant of 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. Seasonal weather prevailed during most of the report period. The daytime high temperatures climbed briefly into the 70s, creating the potential for tornadoes, before a cold front brought them back into the 40s. Overnight low temperatures were in the 30s to the low 50s. Skies were mostly overcast as an extended storm system brought thunderstorms to the region. Some areas recorded over 2 inches of rain, and flood warnings were in effect throughout the region. Virtual and in-person industry meetings were being planned and attended, including the Mid-South Farm and Gin Show. According to the U.S. Drought Monitor, recent rainfall has helped to alleviate the severely deficient soil moisture that has persisted throughout the state of Louisiana. Abnormally dry to moderate drought conditions were widespread throughout Mississippi. Fieldwork was underway in some places. 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 active. Supplies and producer offerings were moderate. Demand was good. Average local spot prices were steady. Producer interest in forward contracting was heavy. Trading of CCC-loan equities was moderate. Foreign mill inquiries were light. Interest was best from China, Pakistan, and Turkey. The COVID-19 Pandemic continued to place pressure on shipping logistics and slowed global economic recovery. Daytime temperatures were in the low 60s to low 80s and overnight lows were in the 40s to 60s in south Texas. Grain planting expanded in the Rio Grande Valley and in the Coastal Bend. Cotton will be planted after the grain crops are sown. Progress in the Upper Coastal counties was impeded by rainfall and fields were soggy. Cotton planting seed was delivered to producers. Inclement wintry conditions halted fieldwork in the Blackland Prairies. Icy conditions lead to hazardous roadways in the northern counties. Daytime temperature highs in Kansas were in the mid-20s to upper 60s. Trace amounts of wintry precipitation was received intermittently. Ginning was completed for the season. Producers booked seed and considered marketing options. Winter storm Oaklee brought up to 4 inches of wintry precipitation in parts of Oklahoma with temperature highs in the mid-teens to mid-70s. Overnight lows were in the teens to 40s. Ginning continued. Fieldwork was interrupted. Producer enrollment for the USDA, Risk Management Agency, Pandemic Cover Crop Program expires on March 15. West Texas Spot cotton trading was active. Supplies were heavy. Producer offerings were moderate. Demand was good. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was moderate. Foreign mill inquiries were light. Interest was best from China, Pakistan, and Turkey. The COVID-19 Pandemic continued to place pressure on commodity markets and shipping logistics. Global economic recovery was slow. Ginning continued with daytime temperatures in the mid-20s to mid-70s, with overnight lows in the single digits to upper 30s. Outside conditions were mixed with spring-like weather one day and wintry the next day. Freezing drizzle, sleet, snow, and rain were spotty, but some locations received two-tenths of an inch up to three-quarters of an inch of precipitation early in the reporting period. Some locations had ice and snow accumulations that shut down roadways. More precipitation is needed ahead of planting. Gusty winds dried out topsoil moisture and fieldwork was limited. Producer eligibility for the USDA, Risk Management Agency’s Pandemic Cover Crop Program expires on March 15. Meetings and crop conferences were held. Trading East Texas • In Kansas, lots containing a heavy volume of color 41 and better, leaf 2 to 6, staple 34 and longer, mike 31-43, strength 26-35, uniformity 76-82, and 50 percent extraneous matter sold for 113.75 to 119.00 cents per pound, FOB car/truck (compression charges not paid). • In Oklahoma, mixed lots containing a heavy volume of color 12 and better, leaf 4 and better, staple 34 and 35, mike 35-44, strength 28-34, uniformity 79-82, and 25 percent extraneous matter sold for 115.50 to 118.00 cents, same terms as above. • A heavy volume of CCC-loan equities traded for 60.25 to 62.00 cents. West Texas • Lots containing a heavy volume of color 11 and 21, leaf 4 and better, staple 35 and longer, mike 31-43, strength 27-35, and uniformity 76-83 sold for 118.00 to 118.75 cents per pound, FOB car/truck (compression charges not paid). • Lots containing a heavy volume of color 41 and better, leaf 3 and better, staple 33 and longer, mike 28-40, strength 26-35, and uniformity 79-82 sold for 116.00 to 116.25 cents, same terms as above. • A heavy volume of lots containing color 12 and better, leaf 6 and better, staple 33 and longer, mike 31-44, strength 26-34, and uniformity 76-82 sold for 113.50 to 115.00 cents, same terms as above. • A heavy volume of CCC-loan equities traded for 60.25 to 62.00 cents. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were weak. Producers inquired for 2022-crop contracts. No sales were reported. Foreign mill inquiries were light. The COVID-19 Pandemic continued to place pressure on commodity markets and shipping logistics. Planting continued in Yuma, AZ. Ginning neared completion in southern California, and in central and eastern Arizona. Recent rainfall encouraged producers, but more is needed to ease droughty conditions. Rows were built and fields prepared for pre-irrigation throughout the entire DSW. Producer enrollment for the USDA, Risk Management Agency’s Pandemic Cover Crop Program expires on March 15. The Agricultural Risk Coverage and Price Loss Coverage enrollment ends the same day. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies were light. Demand was moderate. Average local spot prices were weak. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 Pandemic continued to place pressure on commodity markets and shipping logistics. Wintry weather brought snow to the Sierra Nevada Mountains and light rainfall to the valley with daytime temperatures in the low 40s to low 70s. More precipitation will be needed to support crops and ensure seed germination. The snowpack was at 67 percent for the February 22 average, according to the California Department of Water Resources. Planting was expected to begin in mid-to-late March when soil temperatures reached optimal levels. Producer enrollment for the USDA, Risk Management Agency’s Pandemic Cover Crop Program, Agricultural Risk Coverage, and Price Loss Coverage expires on March 15. American Pima (AP) Spot cotton trading was inactive. Supplies were light. Demand was very good. Average local prices were steady. Producers made inquiries for new-crop pricing. No new sales were reported. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. The COVID-19 Pandemic continues to cause shipping delays and supply chain disruptions in the U.S. A couple of winter storms moved over the region during the period and brought additional snow to the snowpacks that help supply irrigation water. Some areas received a light amount of rainfall. More precipitation is needed to ease droughty conditions. Planting continued uninterrupted in Yuma, AZ. Fertilizer was applied and fields were prepped elsewhere in the Far West. Some locations will begin to pre-irrigate ahead of planting. 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 #19 FOR UPLAND COTTON February 24, 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 March 3, 2022, allowing importation of 10,197,690 kilograms (46,837 bales of 480-lbs) of upland cotton. Quota number 19 will be established as of March 3, 2022 and will apply to upland cotton purchased not later than May 31, 2022 and entered into the U.S. not later than August 29, 2022. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period October 2021 through December 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.