October 11, 2024 Mp_cn206 Weekly Cotton Market Review Spot quotations averaged 14 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 66.65 cents per pound for the week ending Thursday, October 10, 2024. The weekly average was down from 66.79 cents last week and from 81.22 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 67.42 cents on Monday, October 7 to a low of 66.14 cents on Wednesday, October 9. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended October 10 totaled 4,359 bales. This compares to 6,383 reported last week and 4,380 bales reported the corresponding week a year ago. Total spot transactions for the season were 62,219 bales compared to 101,022 bales the corresponding week a year ago. The ICE December settlement price ended the week at 72.66 cents, compared to 72.73 cents last week. Southeastern Markets Regional Summary Spot cotton trading was slow. Producer offerings and supplies were light. Demand was moderate. Producer offerings were light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. Partly cloudy skies over the weekend gave way to plentiful sunshine during the week across much of Alabama, the Florida Panhandle, and most of Georgia. Daytime high temperatures were in the 70s and 80s with nighttime lows mostly in the 60s. Scattered thundershowers brought around one to two inches of moisture to areas of the Gulf coast early in the period. Hurricane Milton ripped across central Florida after making landfall on Wednesday evening, October 9. The storm brought damaging wind, heavy rainfall, and spawned several tornadoes, leaving millions without power. The storms outer bands brought light to moderate rainfall to portions of coastal Georgia. Producers continued to make assessments from Hurricane Helene with reports including roads blocked by snapped trees, downed fences, overturned irrigation pivots, and flooded fields. Boll rot was reported in some fields that experienced cloudy and wet conditions. Cotton bolls opening was nearly completed and, in fields that had dried, harvesting activities slowly restarted. Defoliation activities expanded. Sunny conditions dominated the weather pattern across the upper Southeast during most of the period. Daytime high temperatures in the 80s cooled into the 70s later in the week with nighttime lows mostly in the 60s. Recovery efforts and damage assessments from Hurricane Helene continued across the region. In the worst affected areas, catastrophic wind and flood damage was reported. Local experts noted that earlier planted fields with open bolls that were defoliated ahead of the storm were most adversely affected. Boll opening neared completion and harvest activities were getting underway. Textile Mill Industry experts reported that some textile mills in western North Carolina and South Carolina experienced damage as the result of flooding and loss of production time due to extended power outages from Hurricane Helene. Domestic mill buyers inquired for a moderate volume of color 41, leaf 4 and better, and staple 35 and longer for first quarter through fourth quarter 2025 delivery. No sales nor additional inquiries were reported. The undertone from mill buyers remained cautious while production schedules continued to be adjusted as yarn orders were received. Demand through export channels was moderate. Agents for mills throughout the Far East inquired for any discounted styles of cotton. Trading � A light volume of color 21 and 31, leaf 2 and 3, staple 37 and 38, mike 35-49, strength 29-32, and uniformity 80-83 sold for around 76.50 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). � A light volume of color mostly 31 and 41, leaf 3 and 4, staple 37 and 38, mike 37-49, strength 28-32, and uniformity 80-83 sold for around 73.00 cents, same terms as above. South Central Markets Regional Summary North Delta Trading of spot cotton and CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. No forward contracting was reported. Business was very slow. Abundant sunshine with occasional cloudiness dominated the region. No rainfall was reported. Daytime high temperatures were in the 80s to 90s. Overnight lows were in the 50s to 60s. Fieldwork was active. Defoliation was hindered in some areas due to nighttime low temperatures preventing leaves from falling. Hot and dry weather conditions favored harvesting in Arkansas, Missouri, and Tennessee. Producers were optimistic about their yields. According to the National Agricultural Statistics Service�s Crop Progress Report released on October 7, cotton bolls opening continued to advance with 98 percent in Arkansas, 93 in Missouri, and 91 in Tennessee. The Memphis Classing Office received samples at an increasing rate as more gins commenced seasonal operations. South Delta Spot cotton trading was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were steady. Trading of CCC-loan equities was inactive. No forward contracting was reported. Business was very slow. Plentiful sunshine prevailed during the reporting period. No rain showers were in the forecast. Daytime high temperatures were in the 80s to 90s. Nighttime temperatures were in the low 50s to 60s. Fieldwork was active as producers finished defoliation and harvesting expanded. Favorable weather conditions greatly influenced harvesting. Pressing operations continued to gain momentum. According to the National Agricultural Statistics Service�s Crop Progress report released on October 7, cotton bolls opening were 95 percent in Louisiana and 96 percent in Mississippi. Trading North Delta � Mixed lots of light volume 2023-crop forfeited CCC-loan cotton, mostly color 31 and 41, leaf 2-4, staple 36-38, mike 45-52, strength 29-33, uniformity 80-85, and 100 percent extraneous matter (plastic) sold for 4.56 to 28.55 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 active. Supplies and producer offerings were heavy. 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 light. Interest was best from China, Pakistan, and Vietnam. Throughout the East Texas region, plentiful sunshine and warm temperatures were observed. Daytime temperatures were in the mid-90s, higher than temperatures historically at this time. Nighttime temperatures were in the upper 50s and low 60s. Harvest activities continued at full force in central Texas. Modules were delivered to gin yards for pressing, and gin yards remained full. Producers were hoping for the favorable weather conditions to continue during the remainder of the harvest season. Moderate rainfall was received early in the period, but rainy conditions gave way to sunshine later in the week in the Upper Coast, parts of the Coastal Bend region, and the Rio Grande Valley (RGV). Daytime temperature highs lingered in the upper 80s and low 90s, and nighttime temperature lows were in the 60s and upper 70s. Precipitation totals ranged from trace amounts to over one and one-half inches in the lower RGV. Additional moisture would be beneficial to ease mounting drought concerns in the Upper Coast. There were still some unpicked pockets in areas of the RGV and the Coastal Bend. Ginning continued across the South Texas region. Preparations to winterize and prepare fields for next season were underway. West Texas-Kansas-Oklahoma Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were weak. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. In Texas, daytime highs were in the mid-80s to mid-90s. Nighttime temperatures were in the 50s to 60s. Defoliants were applied to accelerate leaf drop. Harvesting progressed steadily and ginning expanded. Modules accumulated in fields and on gin yards. Crop adjusters continued evaluating fields. The Weekly Cotton Quality reports for the period ending October 10, shows that the Lubbock and Abilene Classing Offices began grading this past week. For the season ending October 10, the Lubbock Classing Complex had graded 10,833 samples. The seasonal average showed color grade 21 was the predominate color grade, and leaf grade 2 was the predominate leaf grade. Staple length averaged 34.9, mike 4.1, strength 30.5, and uniformity averaged 80.6. The Abilene Classing Office graded 1,821 samples. The seasonal average showed color grade 32 was the predominate color grade, and leaf grade 3 was the predominate leaf grade. Staple length averaged 34.9, mike 4.1, strength 30.5, and uniformity averaged 80.6. In Kansas, harvesting and ginning expanded at some locations under sunny skies. Areas that had planted late-maturing varieties were about two weeks behind schedule and had begun to spray harvest aids to help the leaves drop and the bolls open. In Oklahoma, stripper and picker harvesting expanded under sunny conditions with daytime temperatures in the low to mid-90s. Overnight temperatures were in the 60s. Modules were transported out of the fields and accumulated at the gin yards. Ginning commenced with more gins offering pressing services. Trading East Texas-South Texas � Mixed lots containing a heavy volume of mostly color 31, leaf 3 and 4, staple 36-39, mike 41-51, strength 27-35, and uniformity 79-84 sold for 71.00 to 73.00 cents per pound, FOB warehouse, (compression charges not paid). � A lot containing a light volume of color 21, leaf 2, staple 34-35, mike averaging 43.1, strength averaging 31.5, and uniformity averaging 81.7 sold for around 68.75 cents, same terms as above. � Mixed lots containing a moderate volume of mostly color 41 and better, leaf 3 and 4, staple 33-36, mike 43-50, strength 28-33, and uniformity 78-82 sold for 67.00 to 67.25 cents, same terms as above. � Lots containing a light volume of color 42 and better, leaf 2 and 3, staple 34, mike 41-51, strength 29-32, and uniformity 79-82 sold for 63.00 to 65.50 cents, same terms as above. West Texas, Kansas & Oklahoma � In Texas, a light volume of new-crop mixed lots containing mostly color 23 and better, leaf 3 and better, staple 31 to 33, mike 25-42, strength 22-29, and uniformity 77-78 sold for 51.00 to 52.50 cents per pound, FOB car/truck (compression charges not paid). Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill activity was reported. Average local prices were weak. Foreign mill inquiries were light. Sunny to partly cloudy skies were the norm throughout Arizona. Daily triple-digit temperatures continued to reach record-breaking highs. Nighttime lows were in the 60s and 70s. Excessive heat warnings and air quality alerts were issued. No rain was recorded. In Yuma, AZ, ginning continued. In Central Arizona, defoliation activities expanded, and gins completed maintenance on equipment. In Safford, AZ, harvest-aid chemicals were sprayed on fields. In New Mexico and El Paso, TX, conditions were sunny with daily temperatures in the 80s and 90s. Nightly lows were in the 50s and 60s. In El Paso, fields were defoliated and the presence of whitefly was reported in some places. In New Mexico, defoliation was underway. Harvesting was estimated to begin in the next week to 10 days. Gins readied equipment for the upcoming season. 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 moderate. Weather conditions in the SJV were hot and sunny. Daily temperatures early in the period ranged from 100 to 104 degrees, with multiple days breaking record highs. Nightly lows were in the 60s and 70s. No rain was recorded. Harvesters took to the fields and defoliation activities expanded. Trucks transferred bales to gin yards. Gins commenced operations. The Visalia Classing Office classed the first Upland bales of the season. American Pima (AP) Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic activity was reported. Average local spot prices were steady. Price levels saw a slight improvement. Foreign mill inquiries were moderate. Interest was best from India. Sunny skies were prevalent throughout the San Joaquin Valley. Early in the period, daily temperatures ranged from 100 to 104 degrees, with multiple days breaking record highs. Nightly lows were in the 60s and 70s. No rain was recorded. Harvesting was estimated to expand on a wider scale within the next week or two as defoliation continues. The overall crop was progressing well. In the Desert Southwest, conditions were sunny and hot with daily triple-digit temperatures breaking record highs in some locales. No rain was recorded during the period. In Yuma, AZ, harvesting and ginning continued without interruption. In central Arizona, defoliation activities expanded and the crop was progressing well. In New Mexico, defoliation of fields expanded. Harvesting and ginning was expected to begin within the next week. In El Paso, TX, fields were being defoliated. The presence of whitefly was reported in some fields. Gins made improvements to equipment before the start of the season. Trading Desert Southwest � No trading activity was reported. San Joaquin Valley � No trading activity was reported. American Pima � No trading activity was reported. Cotton Classings For the week ending October 10, 461,208 bales were classed. Nine offices classed cotton this week, with the inclusion of data from Abilene and Visalia. Quality data across all offices for the week was 41.8 percent for color 41, 44.9 percent for leaf 3, staple averaging 36.47, mike averaging 4.52, strength averaging 30.84, and uniformity averaging 81.74. For the entire U.S. upland crop, total classed during the season was 1,623,477 million bales. Twenty-six percent of the upland cotton crop has been harvested, a six percent increase from the previous week and four percent above the 5-year average. Eighty-two percent of the total U.S. crop�s bolls are opening, ten percent ahead of the previous week and two percent ahead of the five-year average. The complete report can be found here: Crop Progress. USDA ANNOUNCES SPECIAL IMPORT QUOTA #26 FOR UPLAND COTTON October 10, 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 October 17, 2024, allowing importation of 7,513,262 kilograms (34,508 bales of 480-lbs) of upland cotton. Quota number 26 will be established as of October 17, 2024, and will apply to upland cotton purchased not later than January 14, 2025, and entered into the U.S. not later than A pril 14, 2025. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period June 2024 through August 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. Supply and Demand Compared to last month, the U.S. cotton balance sheet for 2024/25 shows lower production, mill use, and exports. NASS reduced the estimate of U.S. all-cotton production by slightly over 300,000 bales to 14.2 million in its October Crop Production report, primarily reflecting the damage from Hurricane Helene. Georgia and North Carolina accounted for much of the reduction as high winds and heavy rain pummeled open bolls, while some other states experienced partially offsetting gains. Overall, the national all-cotton yield estimate is reduced 18 pounds from last month to 789 pounds per harvested acre. Domestic mill use is reduced 100,000 bales to 1.8 million due to the latest reported mill activity. Reflecting weaker global import demand and lower production for 2024/25, U.S. exports are reduced 300,000 bales to 11.5 million. Ending stocks are raised 100,000 bales to 4.1 million, for a stocks-to-use ratio of slightly less than 31 percent. The 2024/25 season average upland farm price is unchanged at 66 cents per pound. There are no revisions to the 2023/24 U.S. cotton balance sheet.