Weekly Cotton Market Review, narrative
Mp_cn812 
September 20, 2019 
Weekly Cotton Market Review  
 
 


Average spot quotations were 214 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 58.11 cents per pound for the week ending 
Thursday, September 19, 2019. The weekly average was up from 55.97 last week, 
but down from 76.10 cents reported the corresponding period a year ago. Daily 
average quotations ranged from a season high of 59.09 cents Tuesday, September 17 
to a low of 57.76 cents Thursday, September 19. Spot transactions reported in 
the Daily Spot Cotton Quotations for the week ended September 19 totaled 27,518 
bales. This compares to 25,783 reported last week and 3,016 spot transactions 
reported the corresponding week a year ago. Total spot transactions for the 
season were 91,746 bales compared to 15,143 bales the corresponding week a year 
ago. The ICE December settlement price ended the week at 60.33 cents, compared 
to 62.21 cents last week. 


Southeastern Markets Regional Summary


Spot cotton trading was inactive.  Supplies  and producer offerings were light.  
Demand was light.  Average local spot prices were higher. Trading of CCC-loan 
equities was inactive. 
     
Mostly sunny to partly cloudy conditions prevailed over the lower Southeastern 
region during the period.  Seasonably, hot daytime temperatures varied from the 
upper 80s to low 100s.  Very light, localized moisture was received in portions 
of north Alabama and coastal Georgia during the week.  Rainfall totals measured 
from trace amounts to around one-half of an inch.  The crop advanced under hot 
conditions and bolls were cracking open.  Defoliation was expanding in the 
earliest-planted fields and harvesting was getting underway.  Local experts 
reported that plant maturity and yield potential was widely variable in some 
areas that missed consistent rainfall.  Modules were building in fields and 
arriving at gin yards.  Additional gins had begun pressing operations for the 
season.  Sample receipts were increasing at the Macon Classing Office. According 
to the National Agricultural Statistics Service�s (NASS) Crop Progress report 
released September 16, cotton bolls opening advanced to 70 percent in Alabama 
and Georgia. 
     
Fair to partly cloudy conditions were observed across the upper Southeastern region.    
Daytime high temperatures varied from the low 90s entering the period to the 
uppers 70s later in the week.  Widespread scattered thundershowers brought 
localized moisture to areas throughout South Carolina and cotton growing areas of 
the North Carolina and Virginia coastal plain. Weekly accumulated precipitation totals 
measured from trace amounts to around 2 inches of moisture.  The crop advanced under 
the warm conditions and producers began applying defoliants to the oldest fields.  
Less than optimum defoliation results were reported in some fields in coastal 
areas of North Carolina along the path of Hurricane Dorian; lodged cotton plants 
with damaged root systems resulted in poor uptake of defoliants.  Bolls were 
cracking open and harvesting had begun on a limited basis.  According to NASS, 
cotton bolls opening had reached 71 percent in South Carolina, 61 in North Carolina, 
and 56 percent in Virginia.  
 
Textile Mill 

Inquiries from domestic mill buyers were light.  No sales were reported.  Most 
mills have covered their raw cotton needs through October 2019.  Demand for open-end 
and ring-spun yarn was moderate.   
    
Demand through export channels was moderate.  Agents throughout the Far East inquired 
for any discounted styles of cotton.  No sales were reported.      

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 higher.  Trading of CCC-loan 
equities was inactive.  No forward contracting was reported.  Producers who 
have not marketed their 2018-crop were faced with the expense of forfeiting 
it to the CCC-loan. 
     
Clear skies and hot temperatures characterized the weather pattern during 
the week.  Daytime highs were in the 90s and overnight lows were in the 70s.  
An air quality alert was issued by the National Weather Service for the Memphis 
area, due to excessive ozone.  No rainfall was recorded in the region.  Cotton 
specialists reported that the excessive heat was taking a toll on late-planted 
fields and that some yield reduction was probable. Producers were hoping for 
rain showers to provide relief from the heat and dusty conditions. Harvesting 
activities advanced under ideal conditions, and covered the spectrum from 
defoliation to stalk shredding.  A few gins were just getting underway.  
According to the National Agricultural Statistics Service�s (NASS) Crop Progress 
report released September 16, bolls opening advanced to 85 percent in Arkansas, 
48 in Missouri, and 47 percent in Tennessee.  Harvesting had reached 4 percent 
complete in Arkansas. NASS continued to rate the crop condition mostly 
good-to-excellent in Arkansas and Tennessee, and fair-to-good in Missouri.  
 
South Delta 

Spot cotton trading was inactive.  Supplies of available cotton and demand were 
light.  Average local spot prices were higher.  Trading of CCC-loan equities 
was inactive. No forward contracting was reported as cotton prices remained low.  

Very hot daytime temperatures prevailed during the week.  Daytime highs were 
in the upper 90s, with the heat index well over 100.  The National Weather 
Service reported that average daily high temperatures were about 10 degrees 
above average for this time of  year.  Early morning lows were in the upper 70s.  
Scattered showers brought trace amounts of moisture to isolated areas.  The hot, 
clear weather conditions were ideal for field activities; however, local experts 
reported that the excessive heat was taking a toll on late-planted fields and 
that some yield reduction was probable. Producers were hoping for rain showers 
to help moderate the heat and settle the dust. Defoliation expanded over a
widespread area.  Harvesting gained momentum in Louisiana. Several gins had 
collected sufficient modules on their yards to commence annual pressing operations.  
Producers and ginners in Mississippi continued to prepare equipment and machinery. 
According to the National Agricultural Statistics Service�s (NASS) Crop Progress 
report released September 16, bolls opening reached 77 percent in Louisiana and 
60 percent in Mississippi.  Both figures lagged about one week behind the       
five-year average.  Harvesting had reached 9 percent complete in Louisiana; 
harvesting was expected to expand rapidly in Mississippi.  NASS rated the crop 
condition mostly fair-to-good in Louisiana and Mississippi.   

Trading 
  
North Delta 
..
No trading activity was reported.  
 
South Delta 
..
No trading activity was reported.  


Southwestern Markets Regional Summary   


East Texas-Oklahoma 

Spot cotton trading was moderate.  Supplies and producer offerings were heavy.  
Demand was moderate.  Average local spot prices were higher.  Producer interest 
in forward contracting was light.  Trading of CCC-loan equities was active.  
Foreign inquiries were light.  
     
Heavy rainfall from Tropical Depression Imelda stayed mostly along the coast and 
had little to no impact on harvesting and ginning, according to local sources.  
Ginning continued in the Rio Grande Valley, Coastal Bend, and Upper Coast.  Stripper 
harvesting expanded in the Blackland Prairies and in the Brazos river bottoms.  
Several gins opened to offer ginning services.  Modules dotted the fields and were 
transported to gin yards.  Bales were delivered to the warehouses.  Spotty rainfall 
slowed progress in some locations.  In Kansas, stands progressed with daytime 
temperature highs in the mid-80s to mid-90s.  Irrigation continued.  Harvesting was 
two to three weeks away.  In Oklahoma, defoliation progressed under warm and windy 
conditions.  Harvesting will commence next reporting period, and ginning was expected 
to initiate within three weeks.  Rainfall is in the nearby forecast.  Industry meetings were attended.           
 
West Texas 

Spot cotton trading was moderate for the 2018-crop.  Supplies and producer offerings 
were light.  Demand was light.  Average local spot prices were higher.  Producer interest 
in forward contracting was light.  Trading of CCC-loan equities was active.  Foreign inquiries 
were light.   
     
Cooler conditions prevailed with daytime high temperatures in the low 80s to mid-90s and 
overnight lows in the 60s.  Defoliants were applied on dryland fields and harvesting had begun, 
according to local experts.  Fields west and north of Lubbock were late, and need the heat units 
to build in September.  Those areas will wait for the crop to mature, and a frost to help knock 
off the leaves.  Pre-harvesting activities were delayed on September 13 and 14.  Widespread 
rainfall brought upwards of 3 inches of precipitation to some areas that left fields and roadways 
flooded early in the reporting period.  Spotty showers throughout the period continued to 
interrupt fieldwork.  Grower appreciation events were hosted by several gins ahead of the ginning 
season.  Most gins are ready to start processing cotton, but will wait until the meters are 
read towards the end of the month.  The U.S. Department of Agriculture announced that warehouse 
operators in southern Texas may apply for authorization to store cotton outside in specifically 
designated areas, effective September 9, 2019 through January 31, 2020.    

Trading 
 
East Texas-Oklahoma

..
In Texas, a moderate volume of new-crop mostly color 21 and 31, leaf 2 and 3, staple 36 and 
longer, mike 42-47, strength 27-34, and uniformity 79-83 sold for around 60.00 cents per pound, 
FOB warehouse (compression charges not paid). 
..
A heavy volume of color 31 and better, leaf 1 and 2, staple 35 and longer, mike 44-51, strength 26-31, 
and uniformity 77-81 sold for around 58.25 cents, same terms as above.  
..
A mixed lot containing a moderate volume of mostly color 41 and better, leaf 4 and better, 
staple 33 and 34, mike 40-53, strength 25-31, and uniformity 77-83 sold for 
around 51.00 cents, same terms as above.  
..
A heavy volume of CCC-loan equities traded for 0.50 to 1.25 cents. 

West Texas 
..
A light volume of 2018-crop cotton mostly color 41 and 42, leaf 5 and 6, staple 37, mike 36-42, 
strength  29-30, uniformity 80-82, and 75 percent extraneous matter sold for around 
50.25 cents per pound, FOB  car/truck (compression charges not paid).   
..
A mixed lot containing a light volume of mostly color 41 and 42, leaf 4-7, staple 35 and 36, 
mike 30-36, strength 27-29, uniformity 78-80, and 100 percent extraneous matter sold for 
around 48.00 cents, same terms as above.   
..
A mixed lot containing a light volume of mostly color 42, leaf 5-7, staple 36 and 37, 
mike 41-43, strength 27-28, uniformity 80-82, and 100 percent extraneous matter sold for 
around 42.25 cents, same terms as above.  
..
A heavy volume of CCC-loan equities traded for 0.00 to 2.00 cents. 


Western Markets Regional Summary


Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average local spot 
prices were higher.  No forward contracting or domestic mill activity was reported.   
Foreign mill inquiries were light.  

Temperatures were in the high 90s to low 100s.  The central Arizona crop advanced to 
cut-out stage. Defoliation activities commenced. Ginning continued in Yuma, AZ.  
Temperatures continued to be mild in New Mexico and El Paso, TX.  Sources reported the 
crop made good progress and approached cut-out stage.  Producers prepared equipment for 
harvest.  Gins made final repairs.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average local 
spot prices were higher.  No forward contracting or domestic mill activity was reported.   
Foreign mill inquiries were light.   
     
A low-pressure system entered the region mid-week and produced windy conditions with blowing 
dust. Light precipitation was received in the Sacramento Valley.  No moisture was recorded 
in the SJV.  Snowfall was received in the Sierra Nevada Mountain range in elevations over 8,000 
feet.  Temperatures dropped 20 degrees in the SJV.  Temperatures were in the low 80s.  The 
crop made good progress. Boll counts were good, but perhaps not as sizable as last year.  
Several fields had open bolls on the bottom of plants.  Whitefly pressure was minimal and 
required no control measures.  Producers prepared for harvest.    
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies of 2018-crop cotton were moderate.  Demand was 
light.  Average local spot prices were lower.  No forward contracting or domestic mill 
activity was reported. Foreign mill inquiries were light.   
     
Temperatures turned moderate mid-week for the region.  A low-pressure system dropped 
temperatures into the low 80s to high 90s. The crop was maturing rapidly and 
approaching cut-out in the region.    Defoliation commenced in central Arizona.  
Producers in the Safford Valley prepared for defoliation activities.  
The San Joaquin Valley crop made good progress.  Bolls were cracking open.  
Boll counts were good, but perhaps not as sizable as last year. Producers 
prepared equipment for harvest.   

Trading 
 
Desert Southwest 
..
No trading activity was reported. 
    
San Joaquin Valley 
..
No trading activity was reported. 
 
American Pima 
..
A heavy volume of new-crop cotton was sold to Pakistan.   


 ***********ANNOUNCEMENT***********
An open invitation to bid on CCC-Catalog Cotton was released on September 17 for North Delta, 
East Texas-Oklahoma, West Texas, and DSW 2018-crop cotton.� The closing date is September 24. 
More information is available at the following link: https://www.fsa.usda.gov/programs-and-services/commodity-operations/procurement-and-sales/sales/index.