Mp_cn206 April 19, 2024 Weekly Cotton Market Review Spot quotations averaged 434 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 74.23 cents per pound for the week ending Thursday, April 18, 2024. The weekly average was down from 78.57 cents last week and from 80.28 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 75.89 cents Monday, April 15 to a low of 72.36 cents Thursday, April 18. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended April 18 totaled 4,406 bales. This compares to 1,115 bales reported last week and 27,075 bales reported the corresponding week a year ago. Total spot transactions for the season were 813,357 bales compared to 591,784 bales the corresponding week a year ago. The ICE July settlement price ended the week at 80.61 cents, compared to 85.25 cents last week. Southeastern Markets Regional Summary Spot cotton trading was slow. Supplies and producer offerings were light. Demand was good. Average local spot prices were lower. Trading of CCC-loan equities was inactive. A mix of sun and clouds was observed across the lower Southeast during the period. Daytime high temperatures were mostly in the 70s. Scattered thundershowers brought moisture to portions of north Alabama and areas of coastal Georgia. Weekly accumulated precipitation totals measured from trace amounts to around 2 inches. The rainfall fortified subsoil moisture levels ahead of planting. Producers sprayed fields with fertilizer and herbicides. Some limited planting was underway. Mostly sunny to partly cloudy skies prevailed across the upper Southeast during the period. Daytime high temperatures were in the 70s and 80s. Light scattered precipitation was received across the region during the week. According to the U.S. Drought Monitor, abnormally dry conditions expanded in some areas of North Carolina due to a lack of moisture. Windy conditions were observed. Land preparation continued in fields where soils were firm enough to support equipment. Producers applied burndown applications and fertilizer. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 33 and longer for second quarter and fourth quarter delivery. No sales were reported. No additional inquiries were reported. Mill buyers maintained a cautious undertone as they limited production schedules to maintain balanced yarn inventories. Demand through export channels was moderate. Agents for mills in Taiwan inquired for a moderate volume of USDA Green Card Class, color 31, leaf 3, and staple 36 for prompt shipment. Vietnamese mill buyers inquired for a moderate volume of color 41, leaf 3, and staple 37 for July through December shipment. No sales were reported. Trading � A moderate volume of color 21 and 31, leaf 2 and 3, staple 36 and longer, mike 43-52, strength 29-33, and uniformity 80-83 sold for around 85.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). South Central Markets Regional Summary North Delta Trading of spot cotton was slow. Trading of CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. No forward contracting was reported. Persistent thunderstorms brought light rainfall and overcast skies to the region during the week. The National Weather Service issued another wind advisory for the Memphis territory, with gusts reaching 40 mph. Daytime temperatures were in the 70s and 80s under mostly cloudy skies throughout the report period. Overnight lows were in the 50s and 60s. Some parts of the region received less than 1 inch of moisture, and strong winds helped to dry soft soils. Local experts reported that saturated ground hindered any outdoor activities in parts of the region. A period of dry weather is needed for soils to firm sufficiently to support equipment; however, a few producers in areas that missed the rain were able to get into the field. According to the National Agricultural Service�s Crop Progress report, released on April 15, planting was underway in Arkansas and Missouri, at 2 percent completed respectively. Planting was expected to gain momentum as fields continued to dry. Virtual and in-person industry meetings were being planned and attended at state and national level. South Delta Spot cotton trading was slow. Trading of CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. No forward contracting was reported. Frequent thunderstorms brought light precipitation and mostly overcast skies during the week. The National Weather Service issued another wind advisory for the territory, with gusts reaching 30 mph. Daytime temperatures were mostly in the 80s throughout the report period. Overnight lows were in the 60s. Some parts of the region received less than 1 inch of moisture, and strong winds helped to dry soft soils. Local experts reported that saturated ground hindered any outdoor activities. River flood warnings were in effect in many areas. Clear and dry weather is needed for soils to firm sufficiently to support equipment in parts of the region. According to the National Agricultural Service�s Crop Progress report, released on April 15, no planting was reported. Planting was expected to get underway as soon as fields were sufficiently dry to support heavy equipment. Virtual and in-person industry meetings were being planned and attended at state and national level. Trading North Delta � A light volume of color 31 and better, leaf 3 and better, staple 36 and longer, mike averaging 48.8, strength averaging 31.0, and uniformity averaging 82.0 traded for around 85.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). South Delta � A light volume of color 31 and better, leaf 3 and better, staple 36 and longer, mike averaging 48.8, strength averaging 31.0, and uniformity averaging 82.0 traded for around 85.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). Southwestern Markets Regional Summary East Texas-South Texas 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, Mexico, Pakistan, and Taiwan. In East Texas, partly cloudy skies accompanied by April showers were observed. Daytime high temperatures ranged from the upper 70s to the low 80s throughout the week, with nighttime temperature lows in the mid-to-upper 60s. Local sources reported that moisture accumulations ranged from less than one-half of an inch up to eight inches of precipitation in cotton producing areas of East Texas. Planting was stalled by muddy field conditions in areas where rainfall was heaviest. In South Texas, overcast skies and mostly dry weather conditions persisted. Daytime high temperatures were in the low to mid-80s, with nighttime temperature lows in the mid-70s. Planting continued in the Upper Coast. In the Coastal Bend, the planted crop was progressing well but would benefit from additional precipitation. Replanting was underway in some fields. In the Rio Grande Valley, some insect pressures were reported, but populations remained below threshold levels. West Texas-Kansas-Oklahoma Spot cotton trading was moderate. 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, Mexico, Pakistan, and Taiwan. In Texas, plentiful sunshine and breezy conditions prevailed with daytime high temperatures in the mid-60s to low 90s and overnight low temperatures in the 30s to 60s. Corn planting was underway, and once the soil temperatures reach around 65 degrees, cotton seeding was expected to begin. Most will initiate sowing in late April on the Northern High Plains. Producers on the Southern High Plains and the Rolling Plains will plant in May and early June. Seed orders were delivered. A good chance of heavy rainfall is in the nearby forecast and producers are encouraged about the possibility of receiving beneficial moisture ahead of planting. In Kansas, sunny and partly cloudy skies prevailed with daytime high temperatures in the mid-60s to mid-90s. A dry cold front moved in late-week that dropped daytime high temperatures into the mid-50s that will linger into the weekend. Precipitation materialized for some locations that received more than three-fourths of an inch of rain, but rainfall was not widespread across the state. Planting will begin in May. In Oklahoma, fieldwork continued, and ground was prepped for seeding. Cover crops were terminated, and furrows were rebuilt. Planting will begin in mid-May. Trading East Texas-South Texas � No trading activity was reported. West Texas-Kansas-Oklahoma � In Texas, lots containing a light volume of color 31 and better, leaf 3 and better, staple 35-38, mike 39-48, strength 28-33, and uniformity 80-83 sold for around 79.75 cents per pound, FOB car/truck (compression charges not paid). � A light volume containing mostly color 21 & 31 and 22 & 32, leaf 4 and better, staple 36, mike 44-50, strength averaging 32.6, and uniformity averaging 81.3 sold for around 72.50 cents, same terms as above. � A mixed lot containing a moderate volume of color 32 and better, leaf 5 and better, staple 34, mike 35-49, strength 25-32, and uniformity 77-80 sold for around 66.00 cents, same terms as above. 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 lower. Foreign mill inquiries were light. Cotton planting was at 25 percent compared to the five-year average of 30 percent, according to the National Agricultural Statistics Service�s Arizona Crop Progress report released on April 14. In Yuma, AZ the crop progressed well under sunny, warm conditions. In southern and eastern parts of Arizona daily temperatures warmed into the lower to upper 80s and producers look to begin planting as soil temperatures are warming. Planting in higher elevations is estimated to begin the first of May, as temperatures warm. Limited planting continued in central Arizona. No rain was received during the period. In New Mexico, daily temperatures were in the lower to upper 80s, but a cold front in the nearby forecast is estimated to drop temperatures into the 50s and 60s, further delaying planting. In El Paso, TX, daily temperatures were in the 90s, which was beneficial in warming soils to optimal conditions for planting. No rain was recorded in the period. 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 lower. Foreign mill inquiries were light. Temperatures during the period remained cool with high temperatures mostly in the 60s and 70s, and nightly lows in the 40s and 50s. Around one and one-half inches of precipitation was received during the week. Planting continues to be slow, due to cool conditions. Producers have concerns that they will not be able to finish planting by the April 30 deadline. The nearby forecast calls for warmer temperatures in the 80s, which will hopefully give producers the break they need to successfully plant this year�s crop. American Pima (AP) Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were steady. Foreign mill inquiries were light. Interest was best from India. In the San Joaquin Valley, temperatures remained cool with daytime highs in the 60s and 70s. Temperatures in the nearby forecast are expected to warm into the 80s, which is encouraging to an already late start to planting due to cool temperatures. Producers have concerns that they will not be able to finish planting by the April 30 deadline. In Yuma, AZ, the crop progressed well. In New Mexico, cooler temperatures continued, further delaying planting. In Texas, planting is expected to begin soon even though temperatures are not as warm as producers would like, seeing that pima seeds can tolerate cooler soil temperatures. Trading Desert Southwest � No trading activity was reported. San Joaquin Valley � No trading activity was reported. American Pima � No trading activity was reported. USDA ANNOUNCES SPECIAL IMPORT QUOTA #1 FOR UPLAND COTTON April 18, 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 April 25, 2024, allowing importation of 6,902,347 kilograms (31,702 bales of 480-lbs) of upland cotton. Quota number 1 will be established as of April 25, 2024, and will apply to upland cotton purchased not later than July 23, 2024, and entered into the U.S. not later than October 21, 2024. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period December 2023 through February 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.