Weekly Cotton Market Review August 9, 2024 Mp_cn206 Spot quotations averaged 46 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 59.24 cents per pound for the week ending Thursday, August 8, 2024. This is the lowest weekly average since July 16, 2020 when the average was 59.09. The weekly average was down from 59.70 cents last week and from 80.96 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 59.82 cents Friday, August 2 to a low of 58.84 cents Tuesday, August 6. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended August 8 totaled 2,391 bales. This compares to 2,046 reported last week and 3,956 bales reported the corresponding week a year ago. Total spot transactions for the season were at 3,892 bales compared to 5,659 bales the corresponding week a year ago. The ICE October settlement price ended the week at 65.79 cents, compared to 66.88 cents last week. Southeastern Markets Regional Summary Spot cotton trading was slow. Producer offerings and supplies were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. Cloudy conditions prevailed across the lower Southeast over the weekend and early in the period with clear conditions observed later in the week. Daytime high temperatures were in the upper 80s to 90s with nighttime lows in the 70s. Hurricane Debby made landfall along Florida�s Big Bend early in the morning starting the week as a Category 1 hurricane with 80 mph winds and dumping up to 16 inches of rainfall along Gulf Coastal areas. Hurricane Debby was quickly downgraded to a tropical storm as it slowly drifted along Atlantic Coastal Georgia into the Carolinas. Precipitation totals measured four to eight inches with heavier downpours recorded at some locales. Widespread flash flooding occurred in many areas. Producers ramped up fungicide and pesticide applications ahead of the storm in anticipation of potential impacts. Plants were blown around and laid down in fields where the strongest wind gusts occurred. One percent of bolls were open in Georgia, according to National Agricultural Statistics Service�s Crop Progress report released August 5. Tropical Storm Debby moved across the Coastal Carolinas and Virginia late in the week bringing heavy rainfall, damaging wind, and tornadoes. Daytime high temperatures in the 90s moderated into the upper 70s as storms moved across the region during the period. Widespread rainfall caused flash flooding and high winds downed trees, and thousands of power outages were reported. Precipitation totals measured from four to twelve inches across the eastern Carolinas and Virginia. Fungicides and other inputs were applied ahead of the storm. Producers and local experts were assessing damages following the storm path. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41 and better, leaf 4 and better, and staple 34 for October through December delivery. No sales and no additional inquiries were reported. Mill buyers maintained a cautious undertone and kept production schedules balanced with finished product orders. Demand through export channels was moderate but had improved as futures prices weakened. Agents throughout the Far East inquired for any discounted styles of cotton. No sales were reported. Trading � A moderate volume of old-crop color mostly 21 and 31, leaf 2 and 3, staple 36 and longer, mike 43-52, strength 28-32, and uniformity 81-84 sold for around 72.75 cents per pound, FOB car/truck (Rule 5, compression charges paid). � A light volume mixed lot containing 2022-crop cotton, color 42 and better, leaf 3-5, staple 34 and longer, mike 37-52, strength 28-32, and uniformity 81-83 sold for around 51.00 cents, same terms as above. South Central Markets Regional Summary North Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were weak. Trading of CCC-loan equities was inactive. Merchants purchased a light volume of cotton forfeited to the CCC-catalog. No forward contracting was reported. Local experts continued to monitor the price of cotton in hopes of a slight increase. Plentiful sunshine was prevalent throughout the reporting period. Daytime high temperatures were in the mid-80s to the upper 90s. Nighttime low temperatures were in the upper 60s to upper 70s. Excessive heat warnings were issued by the National Weather Services with the heat index up to 106. Precipitation early in the period brought trace amounts to less than one inch of rainfall. More rain is needed to help the crop mature. Hot and humid conditions elevated pulling moisture from the soil. Stands progressed and fields continued to bloom. Bolls matured and developed. Herbicides are being applied to fields where weed control has become a problem. Insect pressure was light. According to the National Agricultural Statistics Service�s Crop Progress report released on August 5, cotton conditions were mostly good to excellent in Arkansas. Conditions were rated good to fair in Missouri and Tennessee. South Delta Spot cotton trading was inactive. Supplies of available cotton and demand were light. Average local spot prices were weak. Trading of CCC-loan equities was inactive. A moderate volume of cotton which forfeited to the CCC catalog was purchased. No forward contracting was reported. Local experts continued to monitor the price of cotton in hopes of a slight increase. Abundant sunshine and breezy conditions prevailed throughout the reporting period. Daytime high temperatures were in the upper 90s to low 100s. Nighttime low temperatures were in the 70s. Heat advisories were issued with index values up to 111. Precipitation earlier in the period brought traces amounts to less than one inch of rainfall. Fieldwork was active. Stands progressed and bolls continued to mature. According to the National Agricultural Statistics Service�s Crop Progress report released on August 5, cotton conditions were mostly good to fair in Louisiana and Mississippi. Trading North Delta � A light volume of 2023-crop CCC-catalog cotton, color 21 and 31, leaf 5 and better, staple 37, mike averaging 46.5, strength averaging 30.9, uniformity averaging 82.8, and 100 percent extraneous matter (plastic) sold for 11.38 cents per pound, FOB warehouse (compression charges not paid). South Delta � No trading activity was reported. Southwestern Markets Regional Summary East Texas-South Texas Spot cotton trading was moderate. Supplies were moderate. Producer offerings were light. Demand was moderate. Average local spot prices were weak. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Pakistan, and Vietnam. Sunny skies and hot temperatures prompted heat advisories for much of the East Texas area. Daytime temperature ranged from the upper 90s to the low 100s, with nighttime temperatures in the mid-to-upper 70s. Plant growth regulators were applied in the Brazos River Bottoms. Humid, hot temperatures helped push plant development as harvest neared. Local experts monitored pests and recommended that treatments be applied as necessary. In South Texas, plentiful sunshine and triple-digit temperatures prompted heat advisories in the Upper Coast, Coastal Bend, and Rio Grande Valley (RGV). Daytime high temperatures were in the upper 90s to the 100s, with nighttime temperature lows in the mid-to-upper 70s. In the Coastal Bend, local sources reported seed sprouting after recent rainfall. Defoliants were applied. Bolls cracked open in the Upper Gulf Coast. Harvesting activities slowly resumed, though fields remained wet in spots. Some fields yielded less production than anticipated. Insurance adjusters evaluated fields in the RGV to determine losses after heavy rains late in the season. Some fields were zeroed out and were plowed due to damage from storms. Gins worked through modules on yards and waited for more to arrive. West Texas-Kansas-Oklahoma Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were lower. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from China, Pakistan, and Vietnam. In Texas, sunny, hot condition ruled with daytime temperatures in the upper 90s to mid-100s. Nighttime temperatures were in the 60s and 70s. Early period storms brought light amounts of precipitation to some counties in the Panhandle, but widespread rainfall would be beneficial to advance the dryland crop and supplement irrigation. August is an important time for blooms to achieve the best yields. The last effective bloom dates will approach around August 20 to early September, depending on location. Most stands were at peak bloom. Fields were sprayed with herbicide, cultivated, or used hoe crews to manually remove weeds. Insect pressure was light, but monitoring continued. In Kansas, the crop advanced with daytime high temperatures in the upper 90s to low 100s. Overnight lows were in the 60s and 70s. No considerable rainfall was received, but a chance for thunderstorms is in the nearby forecast. Irrigation was applied. Stands were setting bolls. Fruit load and retention was good, according to local sources. Herbicide was applied as needed and some weeds were removed by hand. Insect pressure was light. In Oklahoma, hot daytime temperatures prevailed, and heat advisories were issued with heat index values reaching 109 degrees. Daytime high temperatures were in the low-to-upper 100s, and overnight lows were in the 70s. Stands struggled to advance and need rainfall to alleviate heat stress. Some dryland acres were failed for insurance because the stands were not able to germinate and establish in parched fields. Trading East Texas-South Texas � A lot containing a light volume of new-crop color 21 and 31, leaf 2 and 3, staple 36, mike averaging 48.3, strength averaging 30.5, and uniformity averaging 81.2 sold for around 67.75 cents per pound, FOB warehouse (compression charges not paid). � A lot containing a moderate volume of new-crop color 21 and better, leaf 2 and 3, staple 36 and 37, mike averaging 47.4, strength averaging 31.1, and uniformity averaging 82.8 sold for around 67.25 cents, same terms as above. � New-crop mixed lots containing a moderate volume of mostly color 31 and 41, leaf 2 and 3, staple 33-35, mike 41-47, strength 27-30, and uniformity 80-81 sold for around 59.00 to 60.25 cents, same terms as above. West Texas, Kansas & Oklahoma � In Texas, a light volume of mixed old-crop cotton containing color 31 to 34, leaf 2 to 6, staple 35, mike 29-50, strength 28-32, uniformity 77-82, and 75 percent extraneous matter sold for 44.00 to 47.00 cents per pound, FOB car/truck (compression charges not paid). Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were weak. Foreign mill inquiries were light. Daily temperatures throughout Arizona were in the triple-digits. In Phoenix, a record high temperature of 117 degrees was reached on August 4. Nighttime lows were in the 70s and 80s. Some light monsoon activity brought thunderstorms, wind, and scattered showers that produced up to one-quarter of an inch of rain to some locales. Sources report that the crop has fared better than expected with the intense heat. Fields are approaching cutout and blooming. Yields are expected to be better than average. Some insect pressure and rust were reported, and fields were treated as needed. According to the National Agricultural Statistics Service�s Crop Progress report released on August 5, cotton bolls opening was at 57 percent. In New Mexico and West Texas, weather conditions were sunny to partly cloudy. Daily temperatures were mostly in the 90s, with overnight lows in the 60s and 70s. The milder temperatures helped relieve heat stress. The overall crop outlook was good. No beneficial rain was recorded in the period. Fields were in full bloom. Producers applied plant growth regulators as needed. Insect pressure was light, and treatments were applied as needed. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill activity was reported. Average local spot prices were weak. Foreign mill inquiries were light. Throughout the SJV, skies were mostly sunny. Daily temperatures soared into the upper 100s, with overnight lows in the 70s. The upcoming forecast calls for cooler temperatures, with daily highs in the 90s and nightly lows in the 60s. No rain was reported in the period. Fields were irrigated. Producers treated for insect pressures as needed. Boll setting advanced, and the crop was in mostly good condition. American Pima (AP) Spot cotton trading was light. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were lower. Industry continued to be concerned with the decline in market prices. Foreign mill inquiries were light. Interest was best from India. In California, triple-digit daily temperatures returned with overnight lows in the 70s. No rain was reported in the period. Fields were at peak bloom. Irrigation continued. Light aphid pressure was reported in fields and treated as needed. The crop was in mostly good condition. In Arizona, temperatures for the week were in the 110s. A record high of 117 degrees was set on August 4. Showers produced up to one-quarter of an inch of rain to some locales. Sources report that the crop has fared better than expected with the intense heat. Fields approached cutout and were blooming. In West Texas, daily temperatures were mostly in the 90s, with overnight lows in the 60s and 70s. Extension agents urged producers to be on the lookout for aphids, stinkbugs, lygus, and bollworms as peak bloom approaches. Producers focused on keeping the crop properly irrigated and applied growth regulators as needed to control vegetative growth and encourage fruiting. The overall crop outlook was good. Trading Desert Southwest � No trading activity was reported. San Joaquin Valley � No trading activity was reported. American Pima � A moderate volume of color 2, leaf 2, and staple 48 was sold. USDA ANNOUNCES SPECIAL IMPORT QUOTA #17 FOR UPLAND COTTON August 8, 2024 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 August 15, 2024, allowing importation of 9,442,589 kilograms (43,369 bales of 480-lbs) of upland cotton. Quota number 17 will be established as of August 8, 2024, and will apply to upland cotton purchased not later than November 12, 2024, and entered into the U.S. not later than February 10, 2025. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period April 2024 through June 2024, the most recent three months for which data are available. Future quotas, in addition to the quantity announced today, will be established if price conditions warrant.