Mp_cn812
November 20, 2020
Weekly Cotton Market Review
Average spot quotations were up 100 points 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 66.10 cents per pound for the week ending Thursday,
November 19, 2020. The weekly average was up from 65.10 last week and 60.31 cents
reported the corresponding period a year ago. Daily average quotations ranged
from a low of 64.35 cents Friday, November 13 to a high of 66.79 cents Wednesday,
November 18. Spot transactions reported in the Daily Spot Cotton Quotations for
the week ended November 19 totaled 55,843 bales. This compares to 22,630 reported
last week and 36,236 spot transactions reported the corresponding week a year ago.
Total spot transactions for the season were 395,734 bales compared to 307,581 bales
the corresponding week a year ago. The ICE March settlement price ended the week at
71.67 cents, compared to 70.62 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 higher. Trading of CCC-loan equities
was inactive. The COVID-19 Pandemic continues to negatively affect cotton demand
and disrupt supply chains.
Mostly sunny to partly cloudy conditions prevailed across Alabama, the Florida Panhandle,
and Georgia during the period. Daytime high temperatures in the mid-to-upper 70s dropped
into the 60s as a cold front moved across the region late in the week. Harvesting
activities progressed at a good pace and producers were attempting to get as much cotton
off the stalk as possible ahead of wet weather in the nearby forecast. Across the lower
Southeast, yield and quality loss continues to be observed due to persistent wet weather
during the fall. Boll-rot, hard locked bolls, and seeds sprouting in bolls continue to
be reported. Backlogs of modules continued to accumulate on gin yards and ginning continued
uninterrupted. According to the National Agricultural Statistics Service�s (NASS) Crop
Progress report released November 16, cotton harvested had reached 71 percent in Alabama
and 61 percent in Georgia; both figures were behind the NASS five-year average.
In the upper Southeast, mostly cloudy conditions over the weekend gave way to sunny skies
as a cold front moved across the Carolinas and Virginia later in the week. Daytime high
temperatures in the 70s dropped into the 50s. In some areas, fields were slow to dry
following heavy rainfall received late last week from Tropical Storm Eta. Field activities
resumed as fields became firm enough to support equipment. Harvesting advanced in the
Carolinas and at a slower pace in Virginia. Producers were attempting to get as much
cotton off the stalk ahead of wet weather forecast next week. Backlogs of modules were
accumulating on gin yards and ginning continued uninterrupted. According to the NASS
Crop Progress report released November 16, cotton harvested had reached 59 percent completed
in the Carolinas and 40 percent completed in Virginia; figures well behind the NASS five-year average.
Textile Mill
Inquiries from domestic mill buyers was light, no sales were reported. Reports
indicated that mills continued to incrementally increase operating schedules as warranted
by finished product demand and as allowed by available labor. Additional inquiries from
domestic mill buyers were light. Yarn demand was good. Mills continued to produce personal
protective equipment for frontline workers and military supplies.
Demand through export channels was light. Agents throughout the Far East inquired for
any discounted styles of cotton.
Trading
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A moderate volume of color 31 and 41, leaf 3 and 4, staple 38-40, mike 35-49, strength 29-32,
and uniformity 80-83 sold for around 75 to 125 points on ICE March futures, FOB car/truck
(Rule 5, compression charges paid).
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A moderate volume of color mostly 41, leaf 3 and 4, staple 37-39, mike 35-49, strength 31-33,
and uniformity 81-83 sold for around even to 25 points on ICE March futures, same terms as above.
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Mixed lots containing color mostly 41, leaf 3-5, staple 35-38, mike 37-49, strength 28-30,
and uniformity 79-81 sold for around 125 points off ICE March futures, same terms as above.
South Central Markets Regional Summary
North Delta
Spot cotton trading was active. Supplies of available cotton were moderate.
Demand was moderate. Average local spot prices were higher. Trading of CCC-loan
equities was inactive. No forward contracting was reported. Merchants purchased a
light volume of catalog cotton forfeited to the CCC-loan. The COVID-19 Pandemic
continues to negatively impact the overall global economy and daily infection rates
were steadily increasing in many areas.
Warm daytime temperatures dominated the weather pattern during the week. Highs
were in the upper 60s and 70s. Chilly overnight lows were in the 30s and 40s.
No precipitation was reported during the period. Field activities progressed
rapidly under good conditions as cotton was harvested, stalks shredded, and fields
worked for planting next spring. Producers reported that yields were off slightly
from earlier estimates, but they were generally pleased with the results. According
to the National Agricultural Statistics Service�s Crop Progress report released
on November 16, cotton harvested had reached 95 percent completed in Arkansas, 78
in Missouri, and 78 percent in Tennessee. These figures remained near the five-year
average in Arkansas and Tennessee, and about two weeks behind average in Missouri.
South Delta
Spot cotton trading was inactive. Supplies of available cotton were moderate.
Demand was light. Average local spot prices were higher. Trading of CCC-loan
equities was inactive. No forward contracting was reported. Merchants purchased a
light volume of catalog cotton forfeited to the CCC-loan. The COVID-19 Pandemic
continues to negatively impact economic activity around the world and daily infection
rates were steadily increasing in many areas.
Above average daytime temperatures prevailed during the week. Highs were in the low 70s.
Overnight lows were in the 40s to 60s. No rainfall was reported during the week.
Field activities progressed rapidly under good conditions as cotton was harvested, stalks
shredded, and fields prepped for planting next spring. Producers reported that yields
were slightly lower than mid-season expectations, but they were generally happy with
the results. According to the National Agricultural Statistics Service�s (NASS) Crop
Progress report released on November 16, harvesting advanced slowly and reached 97
percent completed in Louisiana and 91 percent in Mississippi. Harvesting was near
the NASS five-year average in both states as harvesting neared completion.
Trading
North Delta
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A moderate volume color mostly 31 and better, leaf 3 and better, staple 36 and longer,
mike 40-50, strength 28-33, and uniformity 80-83 traded for around 75.50 cents per pound,
FOB car/truck (Rule 5, compression charges paid).
�
A light volume of 2019-crop, CCC-Catalog cotton, color 31 and better, leaf 4 and better,
staple 35 and longer, mike averaging 45.5, strength averaging 31.4, uniformity averaging 81.4,
and 100 percent extraneous matter (Level 1 Plastic) sold for 24.25 cents, FOB warehouse (compression charges not paid).
South Delta
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A light volume of 2019-crop, CCC-Catalog cotton, color 31 and better, leaf 3 and better,
staple 39, mike averaging 49.0, strength averaging 31.3, uniformity averaging 81.9, and
100 percent extraneous matter (Level 1 Plastic) sold for 24.25 cents per pound, FOB warehouse
(compression charges not paid).
Southwestern Markets Regional Summary
East Texas
Spot cotton trading was active. Supplies and producer offerings were heavy. Demand
was good. Average local spot prices were higher. Producer interest in forward contracting
was light. Trading of CCC-loan equities was moderate. Foreign inquiries were heavy.
Interest was best from Pakistan and Turkey. An open invitation to bid on a light volume of
2019-crop CCC-Catalog cotton closed on November 18. The COVID-19 Pandemic continued to influence
market uncertainty and impact global cotton demand.
Ginning continued to slow in the Upper Coast and Coastal Bend as many pressed the last bale of
the season at their locations. Ginning continued uninterrupted in the Winter Garden area.
Stalks were shredded and fertilizer was applied. Fields were prepped for winter. The Corpus
Christi Classing Office was around 90 percent completed grading sample receipts for the territory.
The compresses were busy loading and shipping bales.
Windy conditions in Kansas caused gins to temporarily stop operations for fire safety on
November 18. Harvesting was also stalled until the winds subsided. Gins made plans to expand
shifts in the coming days to accommodate the flow of modules to the gin yards. Cotton
harvested was 42 percent completed, according to the National Agricultural Statistics Service�s
(NASS) Crop Progress report released on November 16. Oklahoma cotton harvested was 54 percent
completed, according to NASS. Local reports indicated that some producers were as much as 80
percent completed. Ginning was around 40 percent completed. Modules continued to be hauled
from the fields to the gin yards at a steady pace.
West Texas
Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was very
good. Average local spot prices were higher. Producer interest in forward contracting was
light. Trading of CCC-loan equities was moderate. Foreign inquiries were heavy. Interest was
best from Pakistan and Turkey. The COVID-19 Pandemic continued to impact commodity markets and
global cotton demand. Infection spikes continued to pressure local medical institutions and resources.
A cold front pushed through the area early in the reporting period with wind gusts as much as
50 miles per hour that interfered with harvesting and ginning activities. Unseasonably warm
weather dominated the rest of the period and harvesting made good progress. Daytime temperatures
were in the low 50s to upper 80s, with overnight lows in the 30s to 50s. No rainfall was received
and topsoil continued to dry. Modules were hauled to the gin yards for processing. Ginning continued uninterrupted.
Trading
East Texas
�
In Texas, a heavy volume of mostly color 31 and 41, leaf 2-4, staple 35 and 36, mike
averaging 39.8, strength 27-29, and uniformity 79-81 sold for around 67.00 cents per pound,
FOB warehouse (compression charges not paid).
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A moderate volume of cotton mostly color 41 and 42, leaf 3 and 4, staple 36 and longer, mike 39-48,
strength 28-31, and uniformity 78-83 sold for around 64.25 cents, same terms as above.
�
In Oklahoma, a moderate volume of cotton mostly color 11 and 21, leaf 3 and better,
staple 38 and longer, mike 37-44, strength 30-33, and uniformity 78-82 sold for around 73.00 cents,
FOB car/truck (compression charges not paid).
�
A moderate volume of CCC-loan equities traded for 1.00 to 7.50 cents.
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A light volume of 2019-crop CCC-catalog cotton, color 32 and better, leaf 4 and better,
staple 35 and longer, mike 39-48, strength 28-32, uniformity 79-82, and 100 percent extraneous
matter (Level 1 Plastic) sold for 23.25 to 24.25 cents, FOB warehouse (compression charges not paid).
West Texas
�
A heavy volume of cotton containing mostly color 11 and 21, leaf 1 and 2, staple 36 and
longer, mike 30-49, strength 26-33, and uniformity 77-81, sold for around 73.00 cents per
pound, FOB car/truck (compression charges not paid).
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A moderate volume of lots mostly color 21 and 31, leaf 3 and 4, staple 36-37, mike averaging
48.1, strength 31-33, and uniformity 81-82 sold for 70.00 to 70.75 cents, same terms as above.
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A moderate volume of mostly color 32 and 33, leaf 3 and 4, staple 34-36, mike averaging 38.3,
strength 29-31, uniformity 77-80, and 25 percent extraneous matter sold for around 60.50 cents, same terms as above.
�
A moderate volume of CCC-loan equities traded for 0.25 to 6.25 cents.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was slow. Supplies and producer offerings were moderate. Demand
was light. Average local spot prices were higher. Producers delivered previously
contracted cotton to merchant and cooperative marketing pools. No forward contracting
or domestic mill activity was reported. Foreign mill inquiries were moderate. The
COVID-19 Pandemic continues to pressure the U.S. economy.
Mostly sunny conditions were prevalent in central Arizona. Temperatures were in the 80s and 90s.
No rainfall was recorded in the period. Sources estimated harvest at around 80 to 85 percent completed.
Ginning continued. New Mexico and El Paso, TX saw mostly sunny conditions with temperatures in
the 70s. Nice weather allowed harvest to make good progress. New Mexico sources estimated
harvest to be around 40 percent completed and 80 percent in El Paso, TX. Warehouses were busy shipping cotton.
San Joaquin Valley (SJV)
Spot cotton trading was inactive. Supplies and demand were light. Producers delivered
previously contracted cotton to merchant and cooperative marketing pools. Average local spot
prices were higher. The COVID-19 Pandemic continues to negatively impact the U.S. economy. No
forward contracting or domestic mill activity was reported. Foreign mill inquiries were light.
Daytime high temperatures were in the 60s to 70s, with a couple of foggy mornings in the period.
Overnight lows were in the 40s. Harvesting was virtually completed. Producers shredded stalks
in compliance with the California Pink bollworm program. Fields were prepped for winter plantings.
Ginning continued uninterrupted.
American Pima (AP)
Spot cotton trading was inactive. Supplies of 2019-crop were light and were moderate for
2020-crop cotton. Demand was moderate. Average local spot prices were steady. Producers delivered
previously contracted cotton to merchant and cooperative marketing pools. No forward contracting
or domestic mill activity was reported. Foreign mill inquiries were moderate. Interest was
best from China for 2020-crop cotton. Shippers continued to offer and sell 2019-crop cotton.
Reported sales were for prompt shipment. The COVID-19 Pandemic slowed the U.S. economy and
the spike in new infections overseas affected the progress of global economies.
Cold temperatures descended into the Far West early in the reporting period. Far West
temperatures were in the 70s to 90s. A cold front pushed through, which brought very little
moisture to the San Joaquin Valley (SJV) of California. Harvesting advanced throughout the
region. SJV producers reported that some fields were slow to open fully after defoliation.
Micronaire quality is trending higher compared to previous years. Ginning was steady.
Trading
Desert Southwest
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A moderate volume of Arizona cotton color 11 and 21, leaf 2 and better, staple 35 and longer,
mike 36-52, strength 26-35, and uniformity 78-83 sold for around 70.25 cents per pound, uncompressed,
FOB warehouse.
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A light volume of New Mexico cotton mostly color 21, leaf 2 and better, staple 36 and 37,
mike averaging 43.1, strength averaging 31.9, and uniformity averaging 80.8 sold for around
72.00 cents, FOB car/truck (compression charges not paid).
San Joaquin Valley
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No trading activity was reported.
American Pima
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No trading activity was reported.
USDA ANNOUNCES SPECIAL IMPORT QUOTA #5
FOR UPLAND COTTON
November 19, 2020
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
November 26, 2020, allowing importation of 8,108,926 kilograms (37,244 bales of 480-lbs)
of upland cotton.
Quota number 5 will be established as of November 26, 2020 and will apply to upland
cotton purchased not later than February 23, 2021 and entered into the U.S. not later
than May 24, 2021. The quota is equivalent to one week's consumption of cotton by
domestic mills at the seasonally-adjusted average rate for the period July 2020 through
September 2020, 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.