Mp_cn812 April 24, 2020 Weekly Cotton Market Review Average spot quotations were 220 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 49.75 cents per pound for the week ending Thursday, April 23, 2020. The weekly average was up from 47.55 last week, but down from 72.49 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 48.07 cents Friday, April 17 to a high of 51.58 cents Thursday, April 23. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended April 23 totaled 18,459 bales. This compares to 22,698 reported last week and 8,277 spot transactions reported the corresponding week a year ago. Total spot transactions for the season were 1,426,206 bales compared to 1,108,450 bales the corresponding week a year ago. The ICE July settlement price ended the week at 56.37 cents, compared to 53.02 cents last week. Southeastern Markets Regional Summary Spot cotton trading was slow. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. Producers considered spring planting options as the COVID-19 Pandemic continues to negatively impact economic activity. Fair to mostly cloudy conditions prevailed across Alabama, the Florida Panhandle, and Georgia during the period. Daytime high temperatures were in the upper 70s to low 80s. Widespread thunderstorms brought moderately heavy moisture to areas across the region over the weekend and late in the week. Precipitation totals measured from 1 to 3 inches, with heavier accumulations observed in some areas. Planting was getting underway. In areas where fields were firm enough to support equipment, producers applied burndown and fertilizer in between rain events. However, windy conditions prevented the application of herbicide sprays in some areas. Low-lying areas remained saturated and inaccessible. Producers continued to carefully manage crop inputs, due to low cotton market prices. Fair to mostly clear conditions were observed across the Carolinas and Virginia during the period. Daytime high temperatures varied from the low 60s to mid-70s. Scattered thunderstorms brought light precipitation to the upper Southeastern region early in the week. Precipitation totals measured around 1 inch of moisture in portions of southern South Carolina and the cotton growing region of eastern Virginia. Elsewhere, rainfall totals measured around one-half of an inch. Producers were busy preparing fields, applying fertilizer, lime, and burndowns. Some low-lying areas remained saturated and inaccessible. Planting had begun on a limited basis, but was delayed due to cool temperatures. Producers continued to carefully manage crop inputs to reduce costs due to low cotton market prices. Textile Mill Inquiries from domestic mill buyers were very light. No sales were reported. The undertone from mill buyers remained very cautious as they continued to delay or reschedule deliveries of raw cotton due to closures or reduced schedules associated with the COVID-19 virus. Some mills planned to remain closed until early May; other mills were gradually resuming operations on a limited basis as supported by finished product orders. Most production centered on face masks, surgical gowns, and medical products in response to the COVID-19 Pandemic. Demand through export channels was light-to-moderate. Agents throughout the Far East inquired for any discounted styles of cotton. Trading .. A moderate volume of color 51 and better, leaf 4 and better, staple 35 and 36, mike 43-52, strength 30-32, and uniformity 81-83 sold for around 200 points off ICE May futures, 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 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 disrupt financial markets and consumer supply chains around the world. A few sunny days, mixed with clouds and intermittent rain showers, prevailed during the week. Thunderstorms late week brought accumulated rainfall of up to 1 inch to many areas. Daytime temperatures were mostly in the 60s and 70s. Overnight lows were in the 40s and 50s. Fieldwork and other activities were hampered due to unfavorable soil conditions from persistent rain showers and cool temperatures. A few rural areas were without electrical power due to recent severe weather. Local experts and extension specialists indicated that very little cotton will be planted in April, due to cold and wet soils; the short-term forecast called for more severe weather. River flood warnings issued by the National Weather Service remained in effect for numerous river watersheds. Some low-lying fields remained completely submerged throughout the region. 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 disrupt the global economy as countries struggle to contain the spread of the deadly virus. Several days of clear skies, mixed with clouds and light rain showers, prevailed during most of the week. Heavy thunderstorms late week brought accumulated rainfall of up to 4 inches to some areas, while around 2 inches were reported generally. Daytime temperatures were in the 70s and 80s, with lows in the 50s and 60s. Power had yet to be restored to some rural homes due to recent severe weather. River flood warnings issued by the National Weather Service remained in effect for numerous locations throughout the region. Low-lying portions of fields along streams and rivers remained flooded or saturated in many areas. Field activities were delayed due to soft, cold soils in many areas. Planting continued in fields that were firm enough to support equipment and where soil temperatures were conducive to good germination. According to the National Agricultural Statistics Service’s Crop Progress report released on April 20, cotton planting advanced to 7 percent completed in Louisiana and 5 percent in Mississippi. Both figures were slightly ahead of the five-year average, in spite of unfavorable planting conditions. Trading North Delta .. No trading activity was reported. South Delta .. A moderate volume of CCC-loan equities were offered for sale at around 1.00 to 4.00 cents per pound. No sales were reported. Southwestern Markets Regional Summary . East Texas Spot cotton trading was light. Supplies and producer offerings were moderate. Demand was light. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Trading of CCC-loan equities was slow. Foreign mill inquiries were light. The COVID-19 Pandemic continued to put pressure on commodity markets. Temperatures were in the 90s in the Rio Grande Valley (RGV) with spotty scattered showers. The crop in the RGV needs moisture. Local sources reported that the crop made good progress and still had potential. The crop was treated for aphids and fleahoppers. In the Coastal Bend and Upper Coast, the crop made progress as scattered showers gave a boost. Kansas and Oklahoma producers worked fields in preparation for planting. Soils had plenty of moisture. Local sources were unsure of how much cotton would be planted. Growers still have some time to decide. West Texas Spot cotton trading was light. Supplies and producer offerings were moderate. Demand was light. No forward contracting or domestic mill activity was reported. Merchant pool sign ups were open and active, with some companies extending producer sign ups through April 30. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. The COVID-19 Pandemic continued to negatively impart economic activity. Daytime high temperatures were mostly in the high 70s to low 80s for most of the week. No rainfall was recorded in the period. Producers were busy preparing fields for planting. Local sources were unsure of planting intensions, and some were figuring to be lower than last year’s plantings. Trading East Texas .. In Texas, a moderate volume mixed lot of mostly color 12 and 22, leaf 3 and better, staple 36-38, mike averaging 43.7, strength averaging 31.1, and uniformity averaging 80.7 sold for around 52.00 cents per pound, FOB warehouse (compression charges not paid). .. A moderate volume of mostly color 12-32, leaf 3 and better, staple 35, mike averaging 42.0, strength averaging 30.8, and uniformity averaging 80.6 sold for around 49.50 cents, same terms as above. .. In Oklahoma, a light volume of color 21 and 31, leaf mostly 2, staple 35-37, mike averaging 46.1, strength averaging 32.2, and uniformity averaging 82.2 sold for around 53.00 cents, FOB car/truck (compression charges not paid). .. A light volume of color mostly 31 and 22, leaf 3 and better, staple 32-34, mike averaging 51.7, strength averaging 30.4, and uniformity averaging 81.0 sold for around 43.50 cents, same terms as above. .. A light volume of 2019 CCC-loan equities traded for around 15 to 20 points per pound. .. A light volume of 2018 CCC-loan equities traded for around 1.50 to 2.50 cents. West Texas .. A heavy volume mixed lot of mostly color 41 and 32, leaf 5 and better, staple 35-38, mike averaging 44.5, strength averaging 31.0, and uniformity averaging 80.4 sold for around 49.00 cents per pound, FOB car/truck (compression charges not paid). .. A light volume of color 21 and 22, leaf 2 and better, staple 32-35, mike averaging 43.6, strength averaging 29.9, and uniformity averaging 78.7 sold for around 48.00 cents, same terms as above. .. A light volume of color 31 and 32, leaf 4 and better, staple 32-34, mike averaging 47.1, strength averaging 29.5, and uniformity averaging 80.9 sold for around 46.25 cents, same terms as above. .. A light volume of 2019 CCC-loan equities traded for around 1.00 to 2.00 cents. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was slow. Supplies were moderate. Demand was light. The COVID-19 Pandemic continues to affect demand for cotton. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Cotton made excellent progress in Yuma, AZ. Planting was active throughout Arizona, New Mexico, and El Paso, TX. Sources reported cotton seedlings were up in Safford, AZ. An increase in planting acreage was reported for El Paso, TX. The El Paso County Water Improvement District 1 released irrigation water for producers on March 13 for March 17 delivery. This is one of the earliest release dates in several years. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. The COVID-19 Pandemic continued to impact U.S. and global economies. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were light. Planting was active as temperatures in the 80s warmed soils. Sources reported plantings could be down as much as 20 to 30 percent. Price, water availability, and low demand were cited as factors. American Pima (AP) Spot cotton trading was inactive. Supplies of 2019-crop cotton were moderate. Demand was light. Average local spot prices were steady. No forward contracting or domestic mill activity was reported. The COVID-19 Pandemic continues to affect demand for cotton. Foreign mill inquiries were light. Sunny, warm conditions advanced planting throughout the Far West. Some early planted cotton was up in Safford, AZ. An increase in acreage was reported for El Paso, TX, due to plenty of irrigation water available. Sources indicated declines in acreage for Arizona and California. Trading Desert Southwest .. A moderate volume of mostly color 41 and 51, leaf 4 and better, staple 35, mike averaging 45.0, strength averaging 31.00, and uniformity averaging 80.9 sold for around 48.00 cents per pound, uncompressed, FOB warehouse. San Joaquin Valley .. No trading activity was reported. American Pima .. No trading activity was reported.