Weekly Cotton Market Review, narrative
Mp_cn812  
February 8, 2019 
Weekly Cotton Market Review 
 
 
 
Spot quotations averaged 113 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 68.68 cents per pound for the week ending 
Thursday, February 7, 2019. The weekly average was down from 69.81 last week 
and from 74.02 cents reported the corresponding period a year ago. Daily average 
quotations ranged from a low of 68.19 cents Monday, February 4 to a high of 
69.09 cents Wednesday, February 6. Spot transactions reported in the Daily Spot 
Cotton Quotations for the week ended February 7 totaled 50,215 bales. This 
compares to 91,509 reported last week and 39,562 spot transactions reported the 
corresponding week a year ago. Total spot transactions for the season were 512,808 
bales compared to 1,340,712 bales the corresponding week a year ago. The ICE 
March settlement prices ended the week at 72.81 cents, compared to 74.40 cents last week. 


Southeastern Markets Regional Summary


Spot cotton trading was inactive.  Supplies and producer offerings were 
moderate.  Demand was moderate.  Average local spot prices were lower. 
Trading of CCC-loan equities was inactive. 
     
Overcast and cloudy conditions prevailed across Alabama, the Florida Panhandle, 
and Georgia during the period.  Unseasonably warm daytime highs varied from 
the low 60s to high 70s.  Daily shower activity brought light to moderate 
precipitation to most areas during the week.  The heaviest accumulations 
were observed in south Georgia where weekly totals measured around one-half 
of an inch to one inch of moisture. Fieldwork was limited; producers continued 
to struggle to harvest the last remaining fields where wet conditions persisted.  
Ginning neared completion in Alabama and Florida.  In Georgia, about half of 
the gins had finished pressing operations for the season, but many had gone 
to gin days as they waited for modules to arrive from the last fields to be 
harvested.  Wet cotton modules also slowed ginning and pressing operations 
at some locations.  The Macon Classing Office had a single shift operating as needed.  
     
Scattered storm activity brought moisture to areas throughout South Carolina 
and coastal North Carolina over the weekend.  Rainfall measurements totaled  
one-quarter of an inch to one inch of moisture.  Clear and sunny weather 
prevailed during the week with unseasonably warm daytime high temperatures 
in the upper 60s to upper 70s.  Producers completed field activities in areas 
where soils were firm enough to support equipment.  Ginning neared completion; 
some gins remained on gins days as they waited for the backlogs of modules to 
accumulate on gin yards.  The Florence Classing Office had a single shift 
operating as needed.  Producers, ginners, and industry members made plans to 
attend the 20th Annual Virginia Cotton meeting scheduled February 14, in Franklin, VA. 
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of 2019-crop cotton, color 41, 
leaf 4, and staple 34 for fourth quarter 2019 delivery.  No sales were reported.  
No additional inquiries were reported.  Most mills operated five to seven days.  
     
Demand through export channels was moderate.  Agents throughout the Far East 
inquired for any discounted styles of cotton; demand was best for mixed lots 
containing lower grades.      

Trading 
..
No trading activity was reported. 


South Central Markets Regional Summary   

 
North Delta 

Spot cotton trading was inactive.  Supplies and demand of available cotton was light.  
Average local spot prices were lower.  Trading of CCC-loan equities was inactive. 
No forward contracting was reported; no new sales were reported. 
 
Mild temperatures accompanied by more rain showers characterized the weather 
pattern during the week.  Daytime highs were in the 60s to 70s and overnight 
lows were in the 40s to 60s most of the week.  The Memphis territory received 
about 1 inch of rain.  A cold front late week brought overnight temperatures in 
the 20s.  The Dumas and Memphis Classing Offices were working as necessary, as 
sample receipts slowed to a trickle. A few gins remained in operation, because 
wet weather and soft soils have hampered the timely retrieval of modules still 
in the field.  Producers and other interested persons made plans to attend 
industry-related workshops and meetings, including the Mid-South Farm and Gin 
Show, scheduled for March 1-2 in Memphis, TN. Producers continued working with 
crop adjusters to determine the extent of crop losses as a result of persistent 
rains during the harvest season.  Producers were also carefully watching commodity 
prices and input costs as they planned for their next crop, as well as following 
the news about on-going international trade negotiations with China, among other countries. 
 
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; no new sales were reported.  

A brief warming trend brought temperatures well above normal to the region during 
the period.  Daytime high temperatures were in the 70s, while overnight lows were 
in the 60s.  Temperatures dipped sharply to near freezing at the end of the week.  
Rain showers brought less than 1 inch of precipitation to most areas, but river 
flood warnings were in effect for parts of Louisiana. Producers and other interested 
persons made plans to attend industry-related workshops and meetings, including the 
Mid-South Farm and Gin Show, scheduled for March 1-2 in Memphis, TN.  Producers were 
planning for their next crop while closely monitoring commodity prices and input costs, 
as well as any news concerning on-going negotiations regarding international trade 
with China, among other countries. 
 
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 active.  Supplies and producer offerings were moderate.  
Demand was moderate.  Producers continued to deliver previously contracted cotton 
to merchant and cooperative marketing pools.  Average local spot prices were lower.  
Producer interest in forward contracting was light.  Trading of CCC-loan equities 
was moderate.  Foreign inquiries were moderate.  Interest was best from India, Pakistan, and Turkey.      
     
Producers planted corn and grain in the Rio Grande Valley.  Cotton planting is 
expected to get underway later in the month when soils reach preferred temperatures 
that encourages germination.  Fields were irrigated ahead of planting.  
Rainfall is needed to improve topsoil and subsoil moisture levels.  Harvesting and 
ginning continued in portions of the Blackland Prairies.  Harvesting was intermittent 
in some areas that continued to receive rainfall.  Fields remained muddy and some 
stands were undergoing insurance assessments. Ginning was intermittent depending 
when modules were delivered to the gin yards.  Ginning continued in Oklahoma and 
Kansas amidst cold and windy conditions. Producers considered planting more cotton acres next season.               
 
West Texas 

Spot cotton trading was moderate.  Supplies and producer offerings were heavy.  
Demand was good.  Producers continued to deliver previously contracted cotton to 
merchant and cooperative marketing pools.  Average local spot prices were lower.  
Producer interest in forward contracting was light.  Trading of CCC-loan equities 
was moderate.  Foreign inquiries were moderate.  Interest was best from India, 
Pakistan, and Turkey.    
     
Daytime high temperatures were in the low 50s to mid-70s, and overnight lows were 
in the teens to upper 40s in Lubbock.  Dry, windy conditions depleted topsoil and 
subsoil moisture levels.  Gins continued to finalize pressing services. 
The harvesting season is drawing to an end with a few pockets of fields left to harvest, 
according to local reports.  Producers made plans for spring planting, and attended 
meetings to learn about the latest technologies.        

Trading 
 
East Texas 
..
In Texas, a heavy volume of color 31, leaf 3, staple 36, mike 35-49, strength 28-33, 
and uniformity 80-84 sold for around 75.50 cents per pound, FOB car/truck (compression charges not paid). 
..
In Oklahoma, a moderate volume of mostly color 31 and 41, leaf 4 and better, staple 36 and 
longer, mike 34-49, strength 29-33, and uniformity 80-82 sold for around 72.00 cents, same terms as above.  
..
In Kansas, a light volume of mostly color 31, leaf 3, staple 37 and 38, mike averaging 43.1, strength       
averaging 31.8, and uniformity averaging 82.1 sold for around 72.25 cents, same terms as above.  
..
A moderate volume of CCC-loan equities traded for 10.75 to 11.00 cents. 
 
West Texas 
..
A heavy volume of mostly color 31, leaf 2 and 3, staple 36, mike 35-49, strength 28-33, 
and uniformity 80-82 sold for around 75.50 cents per pound, FOB car/truck (compression charges not paid).   
..
A moderate volume of color 31 and 41, leaf 4 and better, staple 37 and  longer, mike 33-42, 
strength 30-35, and uniformity 78-82 sold for around 70.50 cents, same terms as above.   
..
A mixed lot containing a heavy volume of mostly color 31 and 41, leaf mostly 3 and 4, 
staple 35-37, mike 31-47, strength 29-35, and uniformity 78-82 sold for around 65.75 cents, same terms as above.   
..
A moderate volume of CCC-loan equities traded for 9.50 to 12.50 cents. 

 
Western Markets Regional Summary 


Desert Southwest (DSW) 

Spot cotton trading was active.  Supplies and demand were moderate.   Producers continued to 
deliver previously contracted cotton to merchant and cooperative marketing pools.  
Average local spot prices were lower.  No forward contracting or domestic mill activity 
was reported.  Foreign mill inquiries were light.   The on-going trade/tariff dispute 
between the US and China have kept most mills on the sidelines.   
     
Daytime high temperatures were mostly in the   mid-60s.  Hard freeze warnings were 
issued for southern Arizona as nighttime lows dropped into the low 30s.  About one-third 
of an inch of moisture was received early in the period.  Ginning continued in Arizona and El Paso, TX.       
 
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.  The on-going trade/tariff dispute between the US 
and China have kept most mills on the sidelines.    
     
A series of cold storms brought widespread heavy rainfall, strong winds, and heavy 
snowfall to California early in the reporting period.  Precipitation amounts ranged 
from one inch to one and three-quarters of an inch.  Reservoir storage improved with 
recent rains.  The statewide snowpack averaged 110 percent of average for February.  
Producers and residents were encouraged by the bountiful weather-maker year.  
Freeze warnings were in effect for the Valley as clear skies formed frosty and icy 
conditions.  Daytime high temperatures were in the upper 50s and nighttime lows were 
in the low 30s.    Ginning was completed.   
 
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.   The on-going 
trade/tariff dispute between the US and China have kept most mills on the sidelines.  
Interest was best for any discounted qualities, especially low mike.   
     
Daytime high temperatures were in the mid-50s to mid-60s in the Far West.  
Nighttime lows were in the low 30s, with many locales under a hard freeze warning.  
A series of cold storms entered the region early in the period.  Snow was received 
in higher elevations of Arizona and California.  In the Sierra Nevada Mountain range 
of California, snowfall was measured in feet.  The statewide snowpack averaged 110 
percent of average for February.  Precipitation amounts ranged from one-third of an 
inch to one and three-quarters of an inch for the region.  The San Joaquin Valley 
reservoir storage capacity received a healthy increase with recent rains. Ginning continued.   

Trading 
 
Desert Southwest 
..
A moderate  volume of mostly color 31 and better, leaf 3 and better, staple 36 and 
longer sold for around 250 to 300  points on ICE March futures, uncompressed, FOB warehouse.  
..
Mixed lots containing color 41 and 51, leaf 4 and better, staple 36 and longer, with 
an average mike of 5.0 sold for around 700 to 800 points off ICE March futures, same terms as above.   
 
San Joaquin Valley 
..
No trading activity was reported. 
 
American Pima 
..
No trading activity was reported. 

 
USDA ANNOUNCES SPECIAL IMPORT QUOTA #16 
FOR UPLAND COTTON 
February 7, 2019 


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 February 14, 2019, allowing importation of 12,619,815 
kilograms (57,962 bales) of upland cotton.  
     
Quota number 16 will be established as of February 14, 2019, and will apply to upland cotton 
purchased not later than May 14, 2019, and entered into the U.S. not later than August 12, 2019. 
The quota is equivalent to one week's consumption of cotton by domestic mills at the 
seasonally-adjusted average rate for the period October 2018 through December 2018, 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.