Return to News Categories

ALL NEWS SECTIONS:
MOST POPULAR SECTIONS:
Cattle - Hogs / Livestock News Currencies News Energy News Grain News Index News Interest Futures News Metals Futures News Reports: Crops, CFTC, etc Soft Commodities News

Futures and Commodity Market News

USDA - AMS: Weekly Cotton Market Review, narrative (2019-07-19)

USDA U.S. Department of Agriculture - July 19, 2019

   

Mp_cn812  
July 19, 2019 
Weekly Cotton Market Review  
 
 

Average spot quotations averaged 187 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 
56.58 cents per pound for the week ending Thursday, July 18, 2019. This is the lowest 
weekly average since week ending March 31, 2016 when the average was 56.11. The weekly 
average was down from 58.45 last week and from 85.14 cents reported the corresponding 
period a year ago. Daily average quotations ranged from a high of 57.99 cents Monday, 
July 15 to a season low of 55.28 cents Thursday, July 18. Spot transactions reported 
in the Daily Spot Cotton Quotations for the week ended July 18 totaled 3,250 bales. 
This compares to 1,262 reported last week and 2,237 spot transactions reported the 
corresponding week a year ago. Total spot transactions for the season were 1,264,938 
bales compared to 2,058,676 bales the corresponding week a year ago. The ICE Oct 
settlement prices ended the week at 60.78 cents, compared to 62.89 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 lower. Trading of CCC-loan equities was inactive. 
     
Mostly cloudy to overcast conditions prevailed across the lower Southeastern 
region over the weekend.  Daytime high temperatures were in the upper 80s to low 90s.  
Widespread showers associated with Tropical Storm Barry brought moisture to areas throughout 
west Alabama and the Florida Panhandle.  Rainfall accumulations measured from 1 to 4 inches 
of moisture.  Producers welcomed the soaking rainfall, which replenished soil moisture 
and relieved heat stressed plants.  In Georgia, rain events were spotty during the week; 
southern cotton growing areas of the state received from trace amounts to around one-half 
of an inch of moisture.  The crop continued to make good progress; squaring advanced and 
boll-setting gained momentum.  Local experts reported aphid populations had declined rapidly.  
Stink bug populations were heavier than normal and some fields required multiple treatments 
to combat the pests.  Bollworm moth flights were getting underway.  Some fields were treated 
for Target Spot disease.  According to the National Agricultural Statistics Service’s (NASS) 
Crop Progress report released July 15, cotton squaring advanced to 82 percent in Alabama and 
79 percent in Georgia; boll-setting advanced to 45 percent in Georgia and 32 percent in Alabama. 
     
A mix of fair to sunny conditions dominated the weather pattern across the upper Southeastern 
region during the period.  Scattered thunderstorms brought moderately heavy moisture to areas 
of eastern North Carolina and portions of coastal Virginia early in the period. Precipitation 
totals measured from one-quarter of an inch to four inches of rainfall.  Light, spotty shower 
activity was observed in localized areas of eastern South Carolina.  Fieldwork was interrupted 
in areas that received the heaviest rainfall.  Seasonably warm daytime highs were in the 
low-to-mid 90s.  The crop progressed well; squaring and boll-setting advanced.  In many fields 
plant maturity remained variable and producers made spot applications of plant growth regulators.  
Producers scouted fields and applied pesticides to combat stink bugs.  Bollworm moth flights 
were underway in areas of North Carolina.  Pressure from aphids was heavy in areas of Virginia.  
According to NASS, cotton squaring reached 82 percent in North Carolina, 68 in South Carolina, 
and 77 percent in Virginia. Boll-setting reached 35 percent in North Carolina, 34 in 
South Carolina, and 9 percent in Virginia. 
 
Textile Mill 

Inquiries from domestic mill buyers remained light.  No sales were reported.  Most mills have 
covered their raw cotton needs through the third quarter of 2019.  Demand for open-end and 
ring-spun yarn was moderate.   
     
Demand through export channels was moderate.  Agents for mills throughout the Far East 
inquired for any discounted or low-grade 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 and demand were light.  
Average local spot prices were lower.  Trading of CCC-loan equities was inactive. No 
forward contracting was reported.   
     
The remnants of Tropical Storm Barry, including high winds and heavy rain storms, moved 
through the region during the week.  The moisture was generally beneficial, particularly 
in drier areas; however,     some parts of Arkansas and Missouri received approximately 
6 inches of precipitation, and many fields were flooded. Fieldwork was at a standstill due 
to saturated soils.  Daytime temperatures were in the 90s in the wake of the storm and the 
heat index soared into the low 100s as a result of high humidity; the National Weather 
Service maintained a heat advisory for most of the Memphis territory.  Overnight lows were 
in the 70s.  The crop made excellent progress under hot, wet conditions.  According to the 
National Agricultural Statistics Service, boll-setting advanced to 72 percent in Arkansas, 
1 in Missouri, and 13 percent in Tennessee.  Producers carefully monitored plant bug and          
bollworm populations.  Aircraft was used to treat fields for infestations of insect pests.  
The Southern Cotton Ginners Association began its series of annual regional meetings to 
inform members of important issues effecting the cotton industry. 
 
South Delta 

Spot cotton trading was inactive.  Supplies of available cotton were moderate.  Demand 
was light.  Average local spot prices were lower.  Trading of CCC-loan equities was inactive. 
No forward contracting was reported.       

Hurricane Barry was downgraded to a Tropical Storm when it came ashore in central Louisiana 
early in the period.  Strong winds and torrential rains moved through the region over the 
course of several days.  Fields in need of moisture generally benefitted from the moisture; 
however, some parts of the    cotton-producing areas of central Mississippi received up to 
8 inches of precipitation, and many fields were flooded.  No fieldwork was possible due to 
wet conditions.  Daytime temperatures were in the 90s and the heat index soared into the 
low 100s as a result of extremely high humidity; the heat advisory issued by the National 
Weather Service last week remained in effect.  Overnight lows were in the     mid-70s.  
The crop responded well to the hot, humid conditions. According to the National Agricultural 
Statistics Service, boll-setting advanced to 40 percent in Louisiana and 21 percent in 
Mississippi.  Producers carefully monitored plant bug and bollworm populations. Aerial a
pplications were made as necessary to control insect pests and excessive vegetative growth.  
The Southern Cotton Ginners Association began its series of annual regional meetings, which 
keeps members up-to-date regarding issues effecting the cotton industry. 

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 slow.  Supplies and producer offerings were moderate.  
Demand was light.  Average local spot prices were lower.  Producer interest in 
forward contracting was light.  Trading of CCC-loan equities was inactive.  
Foreign inquiries were light.   
     
In the Rio Grande Valley, the crop continued to make good progress under hot, 
sunny conditions with daytime high temperatures in the upper 90s to low 100s, 
and overnight lows in the upper 70s to low 80s.  Heat units built and fields 
dried out from recent heavy rainfall.  The plants were loaded and bolls had begun 
to pop open. Defoliants were applied in Cameron County, according to the Pest Cast 
newsletter, published on July 13.  Harvesting is nearby.  Bolls had begun to pop 
open in the Coastal Bend.  In the Blackland Prairies, some stands had begun to bloom 
and others continued to square.  Dry conditions prevailed, and the crop improved.  
Plant growth regulators were applied.  Producers continued to manage weed flushes.  
In Kansas, the crop began to improve with warmer daytime temperatures.  Fields dried 
and producers were able to plow and target weeds.  More heat units are needed to help 
the stands progress.  Ginning was completed.  In Oklahoma, fields had begun to square.  
Although the crop was late, progress was made under drier field conditions with daytime 
high temperatures in the  mid-90s to low 100s.  Irrigation water was applied.   
   
West Texas 

Spot cotton trading was inactive. Supplies and producer offerings were moderate. 
Demand was light.  Average local spot prices were lower.  Producer interest in 
forward contracting was light.  Trading of CCC-loan equities was inactive.  Foreign 
inquiries were light.   
     
The crop continued to make good progress under hot, sunny conditions with daytime 
high temperatures in the mid-90s to low 100s, and overnight lows in the upper 70s to 
low 80s.  Irrigation water was applied.  Fertilizer was applied on dryland fields.  
Industry members were optimistic about the deep root systems that have been established 
by the plants in counties south of Lubbock.  Although the crop is advancing, a 
widespread rain event is needed.  Intermittent rainfall on July 11 brought up to 
3 inches of moisture to localized areas.  Some stands sustained hail damage.  Lots of 
stand variability was reported.  Some stands were blooming and some had 2-true leaves.  
Stands in the Northern High Plains had begun to square, while other stands struggled 
to advance. Producers monitored and applied treatments for fleahoppers and lygus.       

Trading 
 
East Texas 
..
In Kansas, a mixed lot containing a heavy volume of mostly color 42-85, leaf 5-8, 
staple 35 and 36, mike 28-47, strength 23-29, uniformity 77-81, and 75 percent 
extraneous matter sold for around 42.00 cents per pound, FOB car/truck (compression charges not paid). 
..
In Oklahoma, a light volume of mostly color 21 and 31, leaf 2 and 3, staple 37 and 38, 
mike averaging 36.4, strength averaging 28.6, and uniformity averaging 79.4 sold for 
around 58.50 cents, same terms as above.  
..
A light volume of mostly color 41, leaf 3 and 4, staple 34, mike averaging 34.5, 
strength 27-30, and uniformity averaging 78.9 sold for around 45.00 cents, same terms as above. 

West Texas 
..
A mixed lot containing a light volume of mostly color 42-85, leaf 5-8, staple 35 and 36, 
mike 26-47, strength averaging 27.0, uniformity averaging 80.6, and 75 percent extraneous 
matter sold for around 42.00 cents per pound, FOB car/truck (compression charges not paid).   
..
A light volume of organic color 31 and better, leaf 3 and better, staple 40 and 
longer was sold for prompt shipment.   
..
A light volume of CCC-loan equities traded for 7.00 cents. 


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.   
     
Daytime high temperatures were in the mid-100s to mid-110s in Arizona. No rainfall was 
recorded for western and central Arizona in the period.  Sources reported boll-setting 
was good in Yuma.  The crop condition was rated mostly good to excellent, according to 
the National Agricultural Statistics Service’s (NASS) Crop Progress report for week 
ending July 14.   Light monsoon activity brought spotty showers to Safford, AZ, 
New Mexico, and El Paso, TX.  The moisture was beneficial.  In general, hot conditions 
progressed the crop daily and helped the crop catch up.  The condition of the New Mexico 
crop was rated mostly fair to good, according to NASS.  Local experts would like to 
have more monsoon activity as extremely dry conditions existed.  DSW producers were 
fertilizing and irrigating.  Light insect pressure was reported and easily controlled.
   
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.   
     
Temperatures were mostly in the 90s.  The crop made good progress.  Blooming and 
boll-setting advanced. The Valley has had 11 days of temperatures of 100+ degrees 
compared to 22 days of 100+ degree temperatures by this time last year.    
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies were moderate.  Demand was light.  
Average local spot prices were steady.  No forward contracting or domestic mill 
activity was reported.  Foreign mill inquiries were light.    
     
Mostly hot, dry weather advanced the Far West crop. Blooming and boll development 
advanced.  Scattered showers were received in Safford, AZ, New Mexico, and El Paso, TX.   

Trading 
 
Desert Southwest 
..
No trading activity was reported. 
 
San Joaquin Valley 
..
No trading activity was reported. 
 
American Pima 
..
No trading activity was reported. 




Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX.


Extreme Futures: Movers & Shakers

Hottest

Actives

Gainers

Today's Hottest Futures
Market Last Vol % Chg
Loading...

close_icon
open_icon