Weekly Cotton Market Review, narrative
Weekly Cotton Market Review 
September 18, 2020 
Mp_cn206


Spot quotations averaged 147 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 59.84 cents per pound for the week ending 
Thursday, September 17, 2020. The weekly average was up from 
58.37 last week and from 58.11 cents reported the corresponding 
period a year ago. Daily average quotations ranged from a low of 
58.77 cents Friday, September 11 to a high of 60.25 cents Monday, 
September 14. Spot transactions reported in the Daily Spot Cotton 
Quotations for the week ended September 17 totaled 33,704 bales. 
This compares to 10,399 reported last week and 27,518 spot 
transactions reported the corresponding week a year ago. Total 
spot transactions for the season were 158,973 bales compared to 
91,746 bales the corresponding week a year ago. The ICE December 
settlement price ended the week at 65.85 cents, compared 
to 64.81 cents last week. 


 
Southeastern Markets Regional Summary 


Spot cotton trading was slow.  Supplies and producer offerings 
were light.  Demand were light. Average local spot prices were 
higher.  Trading of CCC-loan equities was slow.  The COVID-19 Pandemic 
continues to negatively affect cotton demand and disrupt supply chains. 
 Hurricane Sally made landfall as a category 2 hurricane near the 
Alabama-Florida line in the early morning hours mid-week.  Maximum 
sustained winds were 105 mph and hundreds of thousands of homes and 
businesses remained without power late in the period.  The storm 
ripped off roofs and flooded streets as it dumped more than 30 inches 
of torrential rainfall on some coastal areas in a four-hour period.  
Sally was downgraded to a tropical depression as it moved inland and 
slowly tracked northeast, where it brought several inches of moisture 
to areas throughout Alabama and Georgia.  Flash flood watches and river 
flood warnings were issued across the lower Southeastern region as heavy 
rainfall engorged rivers and streams.  The slow-moving storm produced 
whipping winds which blew plants around and tangled stems.  Bolls were 
cracking open and producers were concerned about boll-rot, diminished 
quality, and yield losses in fields that had already received heavy 
precipitation in recent weeks.  According to the National Agricultural 
Statistics Service�s (NASS) Crop Progress report released September 14, 
cotton bolls opening had reached 55 percent in Alabama and 52 percent in 
Georgia.  

A mix of sun and clouds with scattered showers was observed across the 
upper Southeastern region before the remnants of Hurricane Sally drifted 
across the Carolinas and Virginia late in the week.  Cooler daytime 
temperatures prevailed with highs mostly in the upper 70s to low 80s.  
Flash flood watches and river flood warnings were in effect in some 
areas as widespread thunderstorms brought several inches of precipitation 
late in the period.  Fieldwork was at a standstill due to wet conditions 
during the week.  Crop maturity continued to lag behind historical averages 
across the upper Southeast; producers would welcome a period of dry and 
sunny weather to invigorate plants and help dry water-logged soils.  
According to the NASS Crop Progress report released September 14, 
cotton bolls opening had reached 39 percent in North Carolina, 34 in 
Virginia, and 20 percent in South Carolina. 
 
 
Textile Mill 
Inquiries from domestic mill buyers were very light.  No sales were 
reported.  Reports indicated most mills have covered their raw 
cotton needs through the end of the year.  Although some mills 
have seen incremental increases in finished product demand, mills 
continued to operate at reduced capacity due to the COVID-19 Pandemic.  
The undertone from mill buyers remained cautious.  Mills continued to 
produce personal protective equipment for frontline workers and 
military supplies in response to the COVID-19 Pandemic. 
 Demand through export channels remained light.  Agents for mills 
throughout the Far East continued to inquire for attractively priced 
cotton.  Recent purchases by China were seen as efforts to increase 
China�s state reserve stocks rather than due to finished product demand. 


Trading 
A light volume of color 41 and 51, leaf 2-4, staple 32-35, mike 43-52, 
strength 25-30, and uniformity 79-82 sold for around 1000 points off ICE 
December futures, FOB car/truck, Georgia terms (Rule 5, compression charges 
paid, 30 days free storage.)  

A moderate volume of color mostly 41 and 52, leaf 2-4, staple 33-37, 
mike 43-52, strength 27-30, and uniformity 80-83 sold for around 1200 
points off ICE December futures, same terms as above.  

A heavy volume 2019 CCC-loan equity sold for around 8.00 cents per pound. 


South  Central Markets Regional Summary 

North Delta 
Spot cotton trading was inactive.  Supplies of available cotton and 
demand were 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 negatively impact the overall global 
economy.  
 Mostly clear skies and warm temperatures prevailed during the week.  
Daytime temperatures were in the 80s.  Overnight lows were in the 60s 
and low 70s.  The crop made good progress under fair conditions.  
Producers were concerned about the effect the cold front that is 
expected to enter the region this weekend will have on overall yields, 
as many fields are still maturing. Bolls were rapidly opening and 
defoliation had begun on early-planted and dryland acres.  
Harvesting was expected to get underway within a week in southern areas.  
According to the National Agricultural Statistics Service�s (NASS) Crop 
Progress report released on September 14, bolls opening had reached 84 
percent completed in Arkansas, 31 in Missouri, and 29 percent Tennessee.  
The figures for Missouri and Tennessee were about 2 weeks behind the 
5-year average. 
 
     South Delta 
Spot cotton trading was inactive.  Supplies of available cotton 
and demand were 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 negatively impact 
economic activity around the world.   
 Hurricane Sally brought heavy rainfall, which measured up to 7 inches 
in coastal areas of Mississippi, when it struck the Alabama Gulf Coast 
as a slow-moving, category 2 storm on Tuesday, September 15.  Little-to-no 
crop damage was reported in Mississippi as the brunt of the storm moved 
sluggishly across the cotton-producing areas in the Southeastern region. 
Daytime temperatures were mostly in the 80s to low 90s.  Overnight lows 
were in the 60s and 70s.  Harvest activities progressed steadily under 
good conditions.  Defoliation expanded generally throughout the region, 
and cotton harvesting gained momentum.  Cotton pressing operations were 
underway, but the lack of skilled workers was of concern to some ginners.  
The Rayville Classing Office began operating one shift as annual classing 
operations were initiated.  According to the National Agricultural Statistics 
Service�s (NASS) Crop Progress report released on September 14, bolls opening 
had reached 83 percent completed in Louisiana and 54 percent in Mississippi; 
cotton harvesting was reported at 2 percent in Louisiana and 1 percent in Mississippi.   


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 light. Average local spot prices were higher. Producer interest in 
forward contracting was light. Trading of CCC-loan equities was active. Foreign 
inquiries were light. The COVID-19 Pandemic continued to influence market uncertainty 
and affect global cotton demand.    
 Ginning neared completion in the Rio Grande Valley, and most gins were finished. 
The season was cut short due to major crop damage sustained from Hurricane Hannah. 
Harvesting was estimated at 90 percent completed in the Upper Coast, according to 
industry sources.  Ginning was expected to continue until the end of October.  
Producers were encouraged with above average yields. Only late planted fields in 
south Texas remained to be harvested. Gins continued processing modules on the 
gin yards. Recent heavy rainfall in the Blackland Prairies sidelined fieldwork 
until the soils firm. Careful monitoring of stands was underway for regrowth and 
sprouting. Ginning continued  
 In Kansas, progress was slowed from the cold front that moved through the previous 
period. Sunshine prevailed with occasional foggy conditions. Daytime temperature 
highs were in the upper 60s to low 80s, and overnight lows were in the 50s.  In 
Oklahoma, light rainfall was welcomed, but arrived too late to help the crop advance.  
Some fields had been defoliated, but the main target date is next week, according to 
industry experts. The cold front earlier in September slowed progress and put the crop 
behind normal.  According to the National Agricultural Statistics Service�s Crop Progress 
report released on September 14, bolls opening was at 35 percent, down 10 points from 
last year, and near the 34 percent average.  Virtual meetings and field days were held. 
 
West Texas 
Spot cotton trading was active. Supplies were moderate. Producer offerings were light.  
Demand was light.  Average local spot prices were higher.  Producer interest in forward 
contracting was light. Trading of CCC-loan equities was active. Foreign inquiries were 
light. The Loan Deficiency Payment remains in effect. The COVID-19 Pandemic continued to 
impact commodity markets and global cotton demand.  
     Most irrigation pivots were turned off and drip irrigation was rapidly drawing to an 
end. Bolls had begun to crack open. Hot, sunny conditions prevailed with daytime temperature 
highs in the upper 70s to upper 80s and overnight lows in the mid-50s to low 60s. Spotty 
showers brought light rainfall to isolated locations, which hampered fieldwork in those 
places due to soggy conditions.  A few fully matured fields  were defoliated on the High Plains. 
 
Trading 
 
 
East Texas 
In Texas, a heavy volume of new-crop cotton mostly color 31, leaf 2 and 3, staple 37, 
mike 39-49, strength 29-36, and uniformity 79-83 sold for around 64.75 cents per pound, 
FOB warehouse (compression charges not paid).   

A  heavy volume of new-crop lots containing mostly color 21 and 31, leaf 2-4, staple 36-38, 
mike 40-50, strength 30-33, and uniformity 79-83 sold for 63.25 to 63.50 cents, same terms as above.  

In Oklahoma, a light volume of 2019-crop cotton mostly color 41, leaf 4 and 5, staple 35 
and longer, mike 39-49, strength 29-33, uniformity 79-82, and 50 percent extraneous matter 
sold for around 57.75 cents, FOB car/truck (compression charges not paid). 

A heavy volume of 2019 CCC-loan equities traded for 0.00 to 9.75 cents. 


 
West Texas 
A moderate volume of 2019-crop cotton mostly color 22 and better, leaf 2 and 3, staple 35 
and longer, mike 30-34, strength 28-31, uniformity 78-82, and 25 percent extraneous matter 
sold for around 51.00 cents per pound, FOB car/truck (compression charges not paid).   

An even-running lot containing a light volume of cotton mostly color 21, leaf 3, staple 35 
and longer, mike averaging 28.9, strength averaging 29.9, uniformity averaging 80.2, with 
50 percent extraneous matter sold for around 46.75 cents, same terms as above. 

A light volume of 2019 CCC-loan equities traded for 0.00 to 7.25 cents. 



Western Markets Regional Summary


Desert Southwest (DSW) 
Spot cotton trading was inactive.  Supplies were light.  Demand was light.  Average local spot 
prices were higher.  No forward contracting or domestic mill activity was reported. The Loan 
Deficiency Payment remained in effect. Trading of CCC-loan equities was inactive. Foreign mill 
inquiries were light for 2019-crop cotton. The COVID-19 Pandemic continued to adversely impact 
the U.S. economy, market activity, and demand for raw cotton.       
     Heat units helped open the bolls at the tops of the plants in eastern and central Arizona.  
The crop made good progress with daytime temperature highs in the low 80s to upper 90s.  
Harvesting neared completion in Yuma, AZ and ginning continued.  Bolls were opening in New Mexico 
and El Paso, TX.  Defoliation was expected to begin soon. Producers in New Mexico were encouraged 
as the crop advanced normally. Average to above average yields were expected, depending on location.  
Irrigation was terminated around Artesia and Carlsbad, NM. Ginning was expected to begin in late 
October for NM and El Paso, TX.   
 
San Joaquin Valley (SJV) 
Spot cotton trading was inactive. Supplies and demand were light. Average local spot prices 
were higher. No forward contracting or domestic mill activity was reported. Trading of CCC-loan 
equities was inactive. Foreign mill inquiries were light. The Loan Deficiency Payment remained in 
effect. The COVID-19 Pandemic continued to impact markets. 
     In the SJV, daytime high temperatures were in the upper 80s to low 110s, and overnight lows 
were in the upper 50s to 80s.  Smokey conditions from wildfires continued to blanket the SJV. The 
crop was finishing quickly.  Preparations were underway to commence applying defoliants and boll 
openers in the near-term. Late season insect pressure was light and below treatable levels. The crop 
was rated fair to good, according to the National Agricultural Statistics Service�s Crop Progress 
report published on September 14. Bolls opening was at 20 percent, near 22 last year, and the 
behind the 28 percent five-year average.      
 
American Pima (AP) 
Spot cotton trading was inactive.  Supplies were moderate. Demand was light. Average local prices 
were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries 
were light. The Pima Competitive Payment remained at 7.00 cents. The COVID-19 Pandemic continued to 
negatively influence global cotton demand and disrupt supply chains. The Foreign Agricultural 
Service�s U.S. Export Sales report for week ending September 10 showed 28,000 bales of new sales.  
     In the San Joaquin Valley, bolls were cracking open.  Final irrigation was applied to some 
fields.  Wildfires made air quality poor and hazy atmospheric conditions persisted all week long. 
Harvesting neared completion in Yuma, AZ, with daytime temperatures in the mid-90s to upper 110s. 
Overnight lows were in the upper 60s and 70s. A few stands were treated with defoliants in eastern 
Arizona. Fields in central Arizona were finishing the maturation process. Defoliation activities 
were nearing.  The crop matured in New Mexico and bolls were open to the top of the plants.  
Producers in El Paso, TX and New Mexico were expecting above average yields and optimism was high. 


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 #22 
FOR UPLAND COTTON 
September 17, 2020 

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 September 24, 2020, allowing importation 
of 2,342,753 kilograms (10,760 bales of 480-lbs) of upland cotton.  
     Quota number 22 will be established as of September 24, 2020 and 
will apply to upland cotton purchased not later than December 22, 2020 
and entered into the U.S. not later than March 22, 2021. The quota is 
equivalent to one week's consumption of cotton by       domestic mills 
at the seasonally-adjusted average rate for the period May 2020 through 
July 2020, 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.