Mp_cn812 Weekly Cotton Market Review June 9, 2023 Spot quotations averaged 41 points higher 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 80.72 cents per pound for the week ending Thursday, June 8, 2023. The weekly average was up from 80.31 cents last week, but down from 135.00 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 81.80 cents Friday, June 2 to a low of 79.85 cents Thursday, June 8. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended June 8 totaled 17,986 bales. This compares to 11,437 bales reported last week and 221 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 722,341 bales compared to 1,617,815 bales the corresponding week a year ago. The ICE July settlement price ended the week at 84.31 cents, compared to 86.42 cents last week. Southeastern Markets Regional Summary Spot cotton trading was moderate. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were higher. Trading of CCC-loan equities was moderate. Mostly dry and relatively cool conditions prevailed across the lower Southeast during the period. Daytime temperature highs were in the 80s and low 90s. Partly cloudy skies were observed, with scattered shower activity bringing light moisture to areas throughout the region. Weekly accumulated precipitation totals measured from trace amounts to around one inch of moisture in eastern Alabama, the Florida Panhandle, and north and south Georgia.Despite the moisture, areas of abnormally dry conditions expanded in parts of south Georgia and north Alabama, according to the U.S. Drought Monitor. The favorable weather conditions allowed planting to progress without interruption. Young stands were struggling in southwest Georgia due to the cool temperatures, according to local experts. Partly cloudy conditions prevailed across the upper Southeast during much of the period. Daytime temperature highs were mostly in the 80s to low 90s. Scattered rainfall was received along portions of the eastern Carolinas and Virginia. Weekly accumulated precipitation totals measured from trace amounts to around one inch of moisture. Planting advanced at a rapid pace. Reports indicated crop progress was slowed due to the relatively cool weather. A period of warm and sunny conditions would enhance emerging seedling vigor. Textile Mill No inquiries or sales from domestic mill buyers were reported. Mill buyers maintained a cautious undertone as some operations continued to implement rolling shutdowns to prevent inventories from building. Yarn demand was light. Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted styles of cotton. Trading • A moderate volume of color 31 and 41, leaf 2-4, staple mostly 34-36, mike 37-49, strength 28-30, and uniformity 79-81 sold for around 81.25 cents, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). • A moderate volume CCC-loan equities traded for around 24.00 cents per pound. South Central Markets Regional Summary North Delta Spot cotton trading was slow. Supplies of available cotton were light. Demand was very light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers booked a light volume of 2023-crop cotton. Cotton was being shipped in fulfillment of previously contracted lots. Weather conditions fluctuated from scattered rainfall to partially cloudy. Daytime high temperatures ranged from the high 60s to the mid-80s. Overnight temperatures were in the mid-60s to the low 70s. Although scattered rainfall moved through the Memphis territory, some areas within the region still experienced a lack of moisture. Fieldwork was being done, but producers were hoping for more rain to keep the cotton in the ground in good conditions. Fields were being sprayed and irrigated daily. According to the U.S. Drought Monitor, regional soil moisture was rated abnormally dry in most parts of the region. Producers carefully monitored the prices of commodities hoping for a positive change in the price of cotton. Virtual and in-person regional industry meetings were attended by all interested parties. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Producers booked a light volume of 2023-crop cotton. Cotton was being shipped in fulfillment of previously contracted lots. Daytime temperature highs were in the high 80s to the mid-90s. Overnight temperatures were in the mid-60s and into the 70s. Partially cloudy conditions prevailed, but dry weather dominated the region. Fieldwork advanced normally. Producers were irrigating wherever possible to maintain adequate soil moisture levels and avoid crop stress. Without rain yield losses are possible. According to the U.S. Drought Monitor, soil moisture was rated normal. Producers carefully monitored the prices of competing commodities hoping for a positive change in the price of cotton. Virtual and in-person regional industry meetings were attended by all interested parties. Trading North Delta • A light volume of color 31 and better, leaf 3 and better, staple 37 and 38, mike 43-49, strength 28-31, and uniformity 79-82 traded for 230 points on the ICE July futures, FOB car/truck, (Rule 5, compression charges paid). • A light volume of color 43 and better, leaf 4 and better, staple 35-38, mike 37-53, strength 28-33, and uniformity 80-82 traded for 215 points on the ICE July futures, same terms as above. 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 light. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was slow. Foreign mill inquiries were light. Interest was best from Pakistan, Taiwan, and Turkey. Cotton advanced in the Upper Coast and Coastal Bend, but progress varied from emerging to blooming. Sunny weather helped stands improve and increased heat units. Fleahoppers were treated, and herbicide was applied. In the Rio Grande Valley, pesticides were applied, and fields were monitored as insect pressure mounted. Stands advanced and had begun to square in the Blackland Prairies. Fields firmed enough to support ground rigs that applied herbicides and pesticides. Fleahoppers were above threshold level and were treated. In Kansas, most producers had completed planting, and early-planted stands were up to four true leaves. Some fields were soggy from recent rainfall and those stands were struggling to hold on. Seed sales were down compared to the previous year, indicating less bales will be ginned. Final planting continued in Oklahoma, around spotty shower activity. Stands had emerged, and seedlings varied from cotyledon to two true leaves. Producers were encouraged. West Texas Spot cotton trading was active. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was slow. Foreign mill inquiries were light. Interest was best from Pakistan, Taiwan, and Turkey. Planting was underway as fields dried and firmed. Some planters were sidelined because of rain delays, but many planters were rolling on the High Plains. Stands had begun to emerge, and some were at the two to four true leaf stage. Many producers had to bust the crusty topsoil to help seedlings push through. Consultants monitored thrips and wireworm populations. Weeds were problematic. The final planting date was either near or had expired at most locations, and many fields were planted at a reduced insurance rate on the Northern and Southern High Plains. Many dryland fields had not yet been planted. The Rolling Plains still has time to plant for full insurance coverage, and planting had begun in fields that were firm enough to support planting equipment. Daytime high temperatures were in the low 70s to low 90s, and overnight temperatures were in the 50s to 60s. Trading East Texas • In Kansas, a light volume of mixed lots containing color 21 and 31, leaf 4 and better, staple 35 and 36, mike 40-46, strength 29-32, and uniformity 79-81 sold for 79.00 to 81.25 cents per pound, FOB car/truck (compression charges not paid). • In Oklahoma, a moderate volume containing color 31 to 42, leaf 5 and better, staple 34, mike averaging 44.3, strength averaging 29.9, and uniformity averaging 79.8 sold for around 74.00 cents, same terms as above. • A moderate volume of color 21 to 41, leaf 5 and better, staple 38, mike averaging 33.2, strength averaging 31.8, and uniformity averaging 80.7 sold for around 68.50 cents, same terms as above. • A moderate volume of CCC-loan equities traded for 7.00 to 9.75 cents. West Texas • Lots containing a heavy volume of color 21-41 and 42, leaf 6 and better, staple 36 and 37, mike 33-49, strength 27-34, uniformity 77-83, with 50 percent extraneous matter sold for 76.00 to 78.00 cents per pound, FOB car/truck (compression charges not paid). • Mixed lots containing a heavy volume of color 32 and better, leaf 4 and better, staple 33-38, mike 30-49, strength 25-32, uniformity 77-82, with 50 percent extraneous matter sold for 73.00 to 73.50 cents, same terms as above. • Mixed lots containing a heavy volume of color 31 and 41, leaf 5 and better, staple 32-38, mike 27-49, strength 26-32, and uniformity 79-82 sold for 69.00 to 72.75 cents, same terms as above. Desert Southwest (DSW) Spot cotton trading was slow. Supplies and demand were light. No forward contracting or domestic mill activity was reported. Average local prices were higher. Foreign mill inquiries were light. Temperatures were near the average for this time of year. Daytime highs were in the low to mid-100s in Arizona and the high 80s to low 90s for New Mexico and El Paso, TX. Local sources reported the crop was in all stages of progress in central Arizona. Some growers planted after the grain harvest. The crop made good progress in Yuma, with blooming expanding. The Safford area crop progressed, and growers prepared for first irrigations. Monsoon activity continued in eastern New Mexico. Hail was reported in the El Paso area, but no reports of damage to cotton at this time. No insect pressures were reported. 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 higher. Foreign mill inquiries were light. Temperatures were in the 80s and 90s. Overnight lows were in the low 60s. Snowmelt continued to impact low-lying fields and orchards. Flood warnings remained active. Rivers, creeks, and reservoirs were full. The crop is at the squaring stage, although it is late. Some producers lowered yield expectations, mostly due to the lateness of the crop and low daytime temperatures. More heat is needed to help this crop along. Initial irrigation began. No insect pressures were reported. The California Cotton Ginners and Growers Association released a preliminary planting intentions gin survey report indicating 20,000 acres was planted to Upland. This is not a final acre number and is subject to change when final acreage is tallied by the California Department of Agriculture later in the summer. American Pima (AP) Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic activity was reported. Average local spot prices were steady. Producer price ideas remained firm, and a moderate volume remains unsold. Foreign mill inquiries were light. Shippers offering prices were increasing, given the tightening of the 2022-crop inventory and slow start to the planting season. Daytime high temperatures were in the 80s to mid-100s for the Far West. Flood warnings remained active in Arizona and California as a result of high mountain snowpack melts and dam releases. Monsoon activity brought cloudy conditions and rain into eastern New Mexico and into the Lubbock, TX territory. Flood warnings were in effect for the Lubbock area as thunderstorms with heavy rainfall continued. Official reports totaled two and a half inches, but several locales reported much more. Local sources reported strong winds and hail damage to some AP fields. Those fields will be replanted to Upland. Crop progress in Arizona and California was normal. More heat units were needed in the San Joaquin Valley (SJV) of California. The SJV crop is beginning to square. First irrigations began for early-planted fields during the period. No significant insect pressures were reported. The California Cotton Ginners and Growers Association released a preliminary planting intentions gin survey report indicating 79,000 acres was planted to AP. This is not a final acre number, and is subject to change when final acreage is tallied by the California Department of Agriculture later in the summer. Western Markets Regional Summary Trading Desert Southwest • A light volume of New Mexico cotton color mostly 41 and better, leaf 4 and 5, staple 36 and longer, mike averaging 36.8, strength averaging 31.1, and uniformity averaging 79.8, with around 50 percent extraneous matter (bark) sold for around 70.25 cents per pound, FOB car/truck (compression charges not paid). • A light volume of New Mexico cotton color mostly 51 and better, leaf 5 and 6, staple 36 and longer, mike averaging 29.5, strength averaging 30.9, and uniformity averaging 79.2 sold for around 63.25 cents per pound, same terms as above. San Joaquin Valley • No trading activity was reported. American Pima • No trading activity was reported. USDA OPENS NOMINATIONS FOR AGRICULTURE ADVISORY COMMITTEE VACANCIES USDA, AMS, Cotton & Tobacco Program is seeking nominations for twenty-four vacancies on the Advisory Committee on Universal Cotton Standards. The Committee’s purposes are to review the American Upland Cotton Standards and to make recommendations to USDA concerning the establishment, revision, or change of the standards. Nominations must be received by email or postmarked by July 1, 2023. For more information and an application form please go to: https://www.ams.usda.gov/about-ams/facas-advisory-councils/acucs https://www.usda.gov/whlo/apply Forward Contracting Upland cotton growers in the United States had booked 1 percent of their expected acreage by the end of May this season. This was below the 14 percent booked through the same period last year. Contracting has been most active in the Southeastern and South Central states where 2 percent of the crop was under contract by the end of May, compared to 11 and 26 percent a year earlier, respectively. Southwestern states had contracted 1 percent compared to 12 percent the previous year. Western states’ growers had contracted less than 1 percent compared to 13 percent last year. These estimates were based on the National Agricultural Statistics Board's March Prospective Plantings report and information collected by the Cotton and Tobacco Program’s Market News Division.