Mp_cn812
November 27, 2020
Weekly Cotton Market Review
Average spot quotations were up 209 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 68.19 cents per pound for
the week ending Wednesday, November 25, 2020. The weekly average was up from 66.10 last
week and 60.83 cents reported the corresponding period a year ago. Daily average quotations
ranged from a high of 68.91 cents Monday, November 23 to a low of 67.57 cents Wednesday,
November 25. Spot transactions reported in the Daily Spot Cotton Quotations for the week
ended November 25 totaled 83,328 bales. This compares to 55,843 reported last week and
99,595 spot transactions reported the corresponding week a year ago. Total spot transactions
for the season were 479,062 bales compared to 407,176 bales the corresponding week a year
ago. The ICE March settlement price ended the week at 72.36 cents, compared to 71.67 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.
Sunny to partly cloudy conditions were observed across the lower Southeast region during
the period. Daytime high temperatures were in the upper 60s to upper 70s. Harvesting ramped
up at a good pace as ideal weather conditions allowed fieldwork to advance uninterrupted.
Producers continued to report lower yields and reduced qualities in areas that received
excessive moisture during the fall. 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 23, cotton harvested had reached
81 percent in Alabama and 73 percent in Georgia; both figures were behind the NASS five-year average.
A similar weather pattern settled over the upper Southeast as mostly sunny to partly cloudy
weather prevailed. Seasonably cool daytime high temperatures varied from the low 60s to low
70s. In North Carolina, field activities advanced at a slower pace in areas that received
heavy moisture last week and where fields remained too soggy to support equipment for several
days. In South Carolina and Virginia, harvesting progressed in mature fields as dry conditions
allowed. Ginning continued uninterrupted; backlogs of modules continued to accumulate on gin
yards. According to the NASS Crop Progress report released November 23, cotton harvested had
reached 68 percent completed in South Carolina, 64 in North Carolina, and 49 percent completed
in Virginia; figures well behind the NASS five-year average.
Textile Mill
Buyers for domestic mills purchased a moderate volume of color 41, leaf 3 and 4, and staple
34-36 for January through October 2021 delivery. Mill buyers also inquired for a moderate
volume of color 41-51, leaf 5 and better, and staple 32 and longer for January through October
delivery. No additional sales were reported. Reports indicated that mills continued to incrementally
increase operating schedules as warranted by increased finished product demand. Yarn demand was
good. Mills continued to produce personal protective equipment for frontline workers and military supplies.
Demand through export channels was light. Agents for mills in Turkey purchased a mixed lot recap
containing predominately color 51, leaf 5 and better, and staple 35 for nearby shipment. Vietnamese
mill buyers purchased a moderate volume of color 31, leaf 3, and staple 37 for nearby shipment.
Trading
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A light volume even-running lot containing color 31, leaf 3 and 4, staple 37, mike 39-42,
strength 28-30, and uniformity 81-82 sold for around 77.25 cents per pound, FOB car/truck,
Georgia terms (Rule 5, compression charges paid, 30 days free storage).
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Similar even-running lots containing color 31 and 41 and approximately 25 percent seed coat
fragments sold for around 73.50 cents, same terms as above.
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A moderate volume of color 41 and 42, leaf 3-5, staple mostly 36 and 37, mike 43-49, strength 28-30,
and uniformity 79-81 sold for around 71.50 cents, same terms as above.
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A light volume of 2019-crop cotton, color 51, leaf 3, staple 35 and 36, mike 43-49, strength averaging 27,
and uniformity 81-82 sold for around 53.00 cents, same terms as above.
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Moderate volume mixed lots containing color mostly 41 and 51, leaf 3 and 4, staple 35-38, mike 43-52,
strength 28-32, and uniformity 80-82 sold for around 70.00 cents, FOB car/truck (Rule 5, compression charges paid).
South Central Markets Regional Summary
North Delta
Spot cotton trading was slow. 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. 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 generally in the
60s. Cool overnight lows were in the 40s. Light amounts of precipitation were reported during the
period. Field activities were winding down under good conditions as cotton harvesting and fall
fieldwork neared completion. Producers reported that they were generally satisfied with yields
and quality of the crop. According to the National Agricultural Statistics Service�s Crop Progress
report released on November 23, cotton harvested had reached 99 percent completed in Arkansas, 91 in
Missouri, and 90 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. The COVID-19 Pandemic continues to negatively impact economic activity
around the world and daily infection rates were steadily increasing in many areas.
Seasonably mild 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 harvesting was completed, stalks shredded, and
fields worked for next year�s crops. Producers reported that they were generally happy with the
yield results and the upward movement of prices. According to the National Agricultural Statistics
Service�s Crop Progress report released on November 23, harvesting advanced slowly and reached 99
percent completed in Louisiana and 95 percent in Mississippi. Harvesting was near the NASS five-year
average in both states as harvesting nears completion in all areas.
Trading
North Delta
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A light volume of color 41 and better, leaf 4 and better, staple 35 and longer, mike 40-50,
strength 27-30, and uniformity 79-83 traded for around 75.00 cents per pound, FOB car/truck
(Rule 5, compression charges paid).
South Delta
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No trading activity was reported.
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 China, Pakistan, and Turkey. The COVID-19 Pandemic continued to influence market
uncertainty and impact global cotton demand.
Ginning continued in the Coastal Bend, the Upper Coast, and in the Winter Garden area.
Intermittent rainfall brought a light amount of rain to parts of south Texas. Most gins will
close for the Thanksgiving holiday. A few more gins finished for the season. In the northern
Blackland Prairies, drizzle and rain moved in mid-week and disrupted final harvesting activities.
Stalks were shredded behind the harvesters at some farms. Fields were plowed and fertilizer
applied. Ginning continued at the gins that were offering pressing service.
In Kansas, good harvesting weather turned to light rain and hail that stalled harvesting
activities. A cold front brought 50 mile per hour winds. Gins closed for several hours until
the winds diminished. Harvesting was estimated at around 25 percent completed. In Oklahoma,
harvest quickly approached the end. Irrigated cotton was 99 percent completed and dryland
was around 80 percent harvested in the southwestern counties. Stalks were shredded and some
fields were tilled. Fertilizer applications began.
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 China,
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 and brought a light amount of
rainfall to some areas. The precipitation was much needed to alleviate droughty conditions and
nourish the soil. More rainfall would have been beneficial. Foggy, windy conditions mid-week stalled
field activities and caused some gins to halt operations to observe fire safety standards.
Harvesting is estimated at 90 percent completed on the High Plains, and many producers were able to
finish harvesting ahead of the storm and before the Thanksgiving holiday. Harvesting is expanding in the Rolling Plains.
Trading
East Texas
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In Texas, an even-running lot containing a moderate volume of mostly color 31, leaf 2 and 3,
staple 38 and longer, mike 39-48, strength 29-34, and uniformity 81-83 sold for around 72.50 cents
per pound, FOB warehouse (compression charges not paid).
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In Oklahoma, a heavy volume of cotton mostly color 21, leaf 3 and better, staple 37 and 38, mike 34-44,
strength 29-34, and uniformity 79-82 sold for around 74.00 cents, FOB car/truck (compression charges not paid).
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A moderate volume of cotton mostly color 21, leaf 2, staple 37 and longer, mike 35-43, strength 27-33,
and uniformity 78-83 sold for around 72.75 cents, same terms as above.
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A moderate volume of CCC-loan equities traded for 2.75 to 8.50 cents.
West Texas
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Even-running lots containing a heavy volume of cotton mostly color 11 and 21, leaf 1 and 2,
staple 36 and longer, mike 30-47, strength 28-32, and uniformity 78-81 sold for 71.00 to 71.75 cents
per pound, FOB car/truck (compression charges not paid).
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A heavy volume mixed lot mostly color 21 and 31, leaf 2 and 3, staple 34-37, mike 38-49, strength 26-31,
and uniformity 77-81 sold for around 70.25 cents, same terms as above.
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A heavy volume of mostly color 31 and better, leaf 3-5, staple 35-38, mike averaging 41.4, strength 27-32,
uniformity 78-81, and 75 percent extraneous matter sold for around 67.50 cents, same terms as above.
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A moderate volume of CCC-loan equities traded for 0.25 to 7.50 cents.
Western Markets Regional Summary
Desert Southwest (DSW)
Spot cotton trading was inactive. Supplies and producer offerings were moderate.
Demand was light. Producers delivered previously contracted cotton to merchant and cooperative
marketing pools. Average local spot prices were higher. 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.
A mix of sun and clouds kept temperatures in the high 70s to low 80s in central Arizona. All Arizona
gins were operating at capacity. Field activities consisted of harvesting, shredding stalks, and
preparing fields for winter plantings. Excellent weather conditions allowed harvesting and ginning
to advance in New Mexico and El Paso, TX. Daytime high temperatures were in the 60s and 70s.
Most DSW gins planned on closing for one to two days for Thanksgiving. Warehouses were busying 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.
Foggy mornings were prevalent in the week. Daytime high temperatures were in the 60s.
Overnight lows were in the 30s and 40s. Freeze warnings were in effect throughout the Valley.
Harvesting was virtually completed. Producers shredded stalks in compliance with the California
Pink bollworm program. Ginning continued with some taking one to two days off for Thanksgiving
celebrations. One California gin just started operations in the period. Warehouses were busy shipping cotton.
American Pima (AP)
Spot cotton trading was inactive. Supplies of 2019-crop were light and were moderate for 2020-crop
cotton. Demand was moderate. Producers delivered previously contracted cotton to merchant and
cooperative marketing pools. Average local spot prices were steady. No forward contracting or
domestic mill activity was reported. Foreign mill inquiries were moderate. COVID-19 Pandemic slowed
U.S. economic recovery and the progress of global economies.
Cold temperatures descended into the Far West early in the reporting period. Far West daytime high
temperatures were in the 60s to 80s. Overnight lows were in the 30s to low 50s. No rainfall was
recorded in the period. In the San Joaquin Valley of California, early morning fog was prevalent.
Harvesting advanced throughout the region. A backlog of modules kept ginning steady. Most gins in
the region will close one day for Thanksgiving, with a couple of gins taking two days off. One SJV
gin closed voluntarily for one week, due to COVID-19 exposure. They will resume operations next week.
Trading
Desert Southwest
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No trading activity was reported.
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 #6
FOR UPLAND COTTON
November 27, 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 December 3, 2020, allowing importation of
8,108,926 kilograms (37,244 bales of 480-lbs) of upland cotton.
Quota number 6 will be established as of December 3, 2020 and will apply to upland cotton
purchased not later than March 2, 2021 and entered into the U.S. not later than May 31, 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.