Mp_cn812 March 19, 2021 Weekly Cotton Market Review Spot quotations were virtually unchanged from 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 81.98 cents per pound for the week ending Thursday, March 18, 2021. The weekly average was up from 81.96 cents last week and from 52.58 reported the corresponding period a year ago. Daily average quotations ranged from a high of 82.74 cents Friday, March 12 to a low of 80.84 cents Thursday, March 18. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended March 18 totaled 10,674 bales. This compares to 30,780 reported last week and 18,593 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,300,754 bales compared to 1,374,070 bales the corresponding week a year ago. The ICE May settlement price ended the week at 85.45 cents, compared to 88.35 cents last week. Southeastern Markets Regional Summary Spot cotton trading was slow. Supplies and producer offerings were light. Demand was good. Average local spot prices were steady. Trading of CCC-loan equities was inactive. The COVID-19 Pandemic continues to negatively affect cotton demand and disrupt supply chains. Clinics were expanding and vaccination doses were being distributed at a steady pace. Mostly cloudy to overcast conditions dominated the weather pattern across the lower Southeast during the period. Daytime high temperatures were in the 70s to low 80s. A strong storm system moved across the region late in the week bringing heavy rainfall, hail, and damaging wind. Several possible tornadoes battered portions of east-central Alabama as trees were splintered, buildings were damaged, and thousands were left without power. One to three inches of moisture was received in areas across Alabama, the Florida Panhandle, and Georgia. Fieldwork was halted due to the inclement weather. The last remaining samples of the season continued to trickle into the Macon Classing Office as a few gins remained on gin days. Mostly cloudy conditions prevailed across the upper Southeast during the period. Daytime high temperatures in the upper 70s to low 80s dipped into the mid-40s to mid-50s as a cold front moved across the region early in the week. Intermittent shower activity was observed, and weekly accumulated rainfall totals measured from one-half of an inch to three inches. A band of severe storms moved across the Carolinas and Virginia late in the week. Fieldwork and activities were halted due to the wet weather. Textile Mill Domestic mill buyers inquired for a light volume of 2021-crop cotton, color 41, leaf 3, and staple 36 for November through December delivery. No additional inquiries were reported. Operating schedules were incrementally increased at some locations as finished product orders improved and available labor existed. Personal protective equipment continued to be produced for frontline workers and consumers. Demand through export channels was moderate. Vietnamese mill buyers purchased a moderate volume of color 21, leaf 3 and better, and staple 35 and longer for nearby shipment. Korean mill buyers inquired for a moderate volume of USDA Green Card Class, 2021-crop cotton, color 31, leaf 3, and staple 38 for October through March 2022 shipment. Indian mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 39 for April through May shipment. Pakistani mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 36 for June through October shipment. No additional sales were reported. Trading • Even-running lots containing color 31, leaf 4, staple 38, mike 35-49, strength 29-32, and uniformity 82-83 sold for around 88.50 cents per pound, FOB car/truck (Rule 5, compression charges paid). • A moderate volume of color 31 and 41, leaf 3 and 4, staple mostly 37 and 38, mike 40-49, strength 29-32, and uniformity 80-83 sold for around 87.75 cents, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). South Central Markets Regional Summary North Delta Spot cotton trading was slow. Supplies of available cotton and demand were light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. A light volume of CCC-loan cotton was forfeited. No forward contracting was reported. The COVID-19 Pandemic continues to negatively impact the overall global economy, but daily infection rates have been declining in most places. Vaccinations were progressing steadily in all areas. Daytime highs stayed in the 70s throughout most of the week, plunging into the 50s as a cold front brought severe weather, including thunderstorms and heavy precipitation, late week. Up to 1 inch of measurable rain was reported in many areas. A tornado watch was issued for the region, but no damage was reported. Overnight temperatures experienced the same type of movement, from the 50s to the 30s. Many producers were busy preparing equipment for fieldwork and spring sowing. Producers and other members of the cotton industry participated in virtual industry events and educational seminars. South Delta Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. A light volume of 2019-crop cotton was forfeited to the CCC-loan. No forward contracting was reported. The COVID-19 Pandemic continues to negatively impact the overall global economy, but daily infection rates have been declining in many areas. Vaccinations were moving forward at a steady pace in all areas. Daytime highs were in the 80s early in the week before dropping into the 50s as a cold front brought severe weather, thunderstorms, and heavy precipitation late week. Several tornadoes were reported in the region, and severe damage was reported to several structures as a direct result. At least 1 inch of rain was reported in many places. Overnight temperatures experienced the same drop, from the 50s to the 40s. According to the U.S. Drought Monitor, the cotton-producing area of northeastern Louisiana has had below average rainfall and above average temperatures, resulting in a slight increase in moderate drought conditions. More precipitation is necessary to facilitate spring planting, fully recharge subsoil moisture, and raise irrigation pond levels. Many producers were busy preparing planting equipment or sowing rotational crops. Some fields received aerial applications of burndown herbicides. Ground preparation, including applications of fertilizers and other soil amendments, advanced in fields where soils were firm enough to support equipment. Trading North Delta • A moderate volume of even-running lots containing color 41, leaf 3, staple 37 and longer, mike 35-49, strength 28-34, and uniformity 79-84 traded for around 90.50 cents per pound, FOB car/truck (Rule 5, compression charges paid). • A light volume of 2019-crop cotton, color 51 and better, leaf 6 and better, staple 35 and longer, mike 41-51, strength 27-31, uniformity 79-83, and 100 percent extraneous matter (plastic) forfeited to the CCC-loan for 22.00 cents, FOB warehouse. South Delta • A light volume of 2019-crop cotton, color 51 and better, leaf 6 and better, staple 35 and longer, mike 41-51, strength 27-31, uniformity 79-83, and 100 percent extraneous matter (plastic) forfeited to the CCC-loan for 22.00 cents per pound, FOB warehouse. Southwestern Markets Regional Summary East Texas Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was very light. Average local spot prices were steady. Producer interest in forward contracting was moderate. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from Korea, Pakistan, and Taiwan. A light volume of 2019-crop CCC-Catalog cotton sold on March 15. Logistics were impacted by the COVID-19 Pandemic. Medical communities continued administering vaccinations and were encouraged to offer all three COVID-19 vaccines approved by the Federal Drug Administration. Government stimulus programs encouraged economic recovery efforts. Producers were busy sowing seed in the Rio Grande Valley (RGV) with daytime temperatures in the upper 70s to low 90s. Windy, sunny conditions prevailed. Planting in south Texas had begun. Fields were pre-irrigated if water was available. The area needs a period of soaking rainfall to recharge soil moisture levels. Light amounts of precipitation measuring less than one-tenth of an inch were received in Corpus Christi. The Blackland Prairies received more than a quarter of an inch of beneficial moisture at some locations. Rain chances are in the nearby forecast. Producers booked planting seed. In Kansas, high winds up to 65 miles per hour caused gins to temporarily shut down to prevent fires. Another gin finished the season, and remaining gins are expected to finish in the next reporting period. A mix of rain and snow was received in south central Kansas. In Oklahoma, a few gins continued pressing bales and were expected to continue into April. Wintry weather brought beneficial moisture, but interrupted fieldwork. West Texas Spot cotton trading was moderate. Supplies and producer offerings were light. Demand was light. Average local spot prices were steady. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign inquiries were moderate. Interest was best from Korea, Pakistan, and Taiwan. Cotton logistics continued to be negatively impacted by the COVID-19 Pandemic. Positive cases and hospitalizations have declined. Vaccination clinics expanded and are now offering vaccines to individuals in phases 1A, 1B, 1C, and teachers. Government stimulus programs encouraged economic recovery efforts. Rainfall brought up to 3 inches of beneficial precipitation early in the period. Weather conditions were mixed with daytime highs in the mid-40s to low 80s and overnight lows in the low 20s to mid-50s. Wind gusts up to 65 miles per hour caused blowing dust and further depleted soil moisture levels in some locations on the Caprock, while rain and snow were received in the Texas panhandle. Multiple tornados were spotted that caused some damage. Wind and wildfire advisories and warnings were in effect. Most locations received rainfall, but was not enough to hold the dirt down when the wind blew. Field preparation was at a standstill. The Lubbock Classing Office ran the last samples of the season on March 16. Trading East Texas • In Kansas, a light volume of color 31 and better, leaf 2 and 3, staple 36 and 37, mike averaging 37.3, strength 28-33, and uniformity 79-81 sold for around 89.00 cents per pound, FOB car/truck (compression charges not paid). • A light volume of color 31 and 32, leaf 2 and 3, staple 35, mike 25-28, strength averaging 25.8, uniformity averaging 77.7, and 25 percent extraneous matter sold for around 67.25 cents, same terms as above. • In Oklahoma, a light volume of mixed lot containing color 32 and better, leaf 3 and 4, staple 33-37, mike 35-47, strength 27-31, and uniformity 77-82 sold for around 79.75 cents, same terms as above. • A light volume of 2019-crop CCC-Catalog cotton, color 32 and better, leaf 2 and 3, staple 32-38, mike averaging 44.0, strength averaging 30.3, uniformity averaging 79.7, and 100 percent extraneous matter (plastic) sold for around 25.00 cents, FOB Warehouse (in-charges and storage pre-paid, compression not paid). • A light volume of CCC-loan equities traded for around 16.75 cents. Trading West Texas • A light volume mixed lot of color 43 and better, leaf 3-5, staple 33-35, mike 36-40, strength 27-30, uniformity 79-81, and 50 percent extraneous matter sold for around 76.50 cents per pound, FOB car/truck (compression charges not paid). • A light volume of mostly color 43, leaf 5-8, staple 34 and 35, mike 24-27, strength 26-30, uniformity 77-80, and 100 percent extraneous matter sold for around 64.50 cents, same terms as above. • A mixed lot containing a light volume of color 85 and better, leaf 4-7, staple 35 and longer, mike 26-31, strength 26-29, uniformity 77-85, and 100 percent extraneous matter sold for around 63.75 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 moderate. Average local spot prices were steady. Cooperatives and merchants opened pool sign-ups. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. West coast port congestion remains a concern and continues to impact the agriculture industry. As COVID-19 vaccines become widely available in the U.S., outreach programs dedicated to vaccinating essential agricultural laborers and teachers were active. Due to logistics, homeless populations were offered the Johnson & Johnson vaccine. Schools were in various stages of re-opening. Various government stimulus programs boosted states’ economic recovery efforts. Temperatures were mostly in the 60s and 70s in Arizona. Around one-third of an inch of moisture was received early in the reporting period. No moisture was recorded in the DSW. Young cotton seedlings made good progress in Yuma. Planting continued. Local sources reported central Arizona producers intend to plant nearly the same amount of acreage as last year. Lower-than-average yields of around two and one-quarter bales per acre during the 2020-crop season were blamed on hot nights with temperatures between 91-95 degrees. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices were steady. Cooperatives and merchants opened pool sign-ups. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. As COVID-19 vaccines become widely available in the U.S., outreach programs dedicated to vaccinating essential agricultural laborers and teachers were active. Due to logistics, homeless populations were offered the Johnson & Johnson vaccine. Schools were re-opening in various stages. Government stimulus programs boosted states’ economic recovery efforts. Strong winds and heavy downpours brought much needed rain to the Valley mid-week. Precipitation totals measured one-quarter of an inch to one-half of an inch. Recent storms boosted the statewide snowpack. The snowpack water equivalent was estimated at 16.6 inches which is 59 percent of the April 1 average, according to the California Department of Water Resources on March 16. American Pima (AP) Spot cotton trading was inactive. Supplies of 2020-crop cotton were moderate. Demand was good. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were slow. No new sales were reported. Shipper’s offering prices for 2020-crop cotton were higher. West coast port congestion remains a concern and continues to impact the agriculture industry. Shippers reported vessel wait times, container availability, and trucking logistics at the ports. As COVID-19 vaccines become widely available in the U.S., outreach programs dedicated to vaccinating essential agricultural laborers and teachers were active. Due to logistics, homeless populations were offered the Johnson & Johnson vaccine. Schools were in various stages of re-opening. Government stimulus programs boosted states’ economic recovery efforts. Temperatures were in the 60s to 70s in the Desert Southwest. Temperature highs reached into the 60s in the San Joaquin Valley (SJV) of California. Welcomed rain and snow were received in California. Precipitation totals were around one-half of an inch for the Valley. The statewide Sierra Nevada Mountain snowpack water equivalent was estimated at 16.6 inches which is 59 percent of the April 1 average, according to the California Department of Water Resources on March 16. Planting continued in Yuma, AZ. The young crop made good progress. Fieldwork was active across the Far West. Ginning continued in the SJV. 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 #22 FOR UPLAND COTTON March 18, 2021 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 25, 2021, allowing importation of 8,408,469 kilograms (38,619 bales of 480-lbs) of upland cotton. Quota number 22 will be established as of March 25, 2021 and will apply to upland cotton purchased not later than June 22, 2021 and entered into the U.S. not later than September 20, 2021. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period November 2020 through January 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.