Weekly Cotton Market Review, narrative
Mp_cn812 
March 15, 2019 
Weekly Cotton Market Review 
 
 
Spot quotations averaged 58 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 68.75 
cents per pound for the week ending Thursday, March 14, 2019. The weekly 
average was up from 68.17 last week, but down from 80.48 cents reported 
the corresponding period a year ago. Daily average quotations ranged from 
a low of 67.59 cents Monday, March 11 to a high of 70.18 cents Wednesday, 
March 13. Spot transactions reported in the Daily Spot Cotton Quotations 
for the week ended March 14 totaled 74,401 bales. This compares to 100,649 
reported last week and 35,337 spot transactions reported the corresponding 
week a year ago. Total spot transactions for the season were 842,151 bales 
compared to 1,638,358 bales the corresponding week a year ago. The ICE May 
settlement prices ended the week at 74.30 cents, compared to 73.11 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 higher. Trading of CCC-loan 
equities was inactive. 
     
Fair to overcast conditions prevailed across the lower Southeast region during the 
period.  Daytime high temperatures varied from the upper 60s to low 80s.  Scattered 
shower activity brought light to moderate moisture to areas throughout Alabama, 
the Florida panhandle, and portions of south Georgia.  Weekly accumulated precipitation 
totals measured from trace amounts to around one-inch of rainfall with the heaviest 
amounts observed in north Alabama.  Producers completed routine fieldwork in areas 
where soils were firm enough to support equipment.  In some areas, unharvested cotton 
fields were plowed under.  In Georgia, a few gins remained on gin days as they waited 
for the last modules to arrive from fields. 
     
Across the upper Southeast region, wet conditions dominated the weather pattern over 
the weekend.  Widespread shower activity brought around one-half of an inch to one inch 
of moisture to areas throughout the Carolinas and portions of Virginia early in the period.  
Fair to sunny conditions were observed entering the week and daytime high temperatures were 
in the upper 50s to upper 60s.  Warmer conditions prevailed late week and evening 
thunderstorms were in the near term forecast entering the weekend.  No field activities 
were reported.  Producers considered planting options for the 2019-crop season. 
 
Textile Mill 

Domestic mill buyers inquired for a moderate volume of 2019-crop cotton, color 51 
and better, leaf 4, and staple 34 and longer for January through December 2020 
delivery.  No sales were reported.  Most mills operated five to seven days. Yarn 
demand was moderate. 
     
Demand through export channels was moderate.  Indonesian mill buyers inquired for a 
moderate volume of USDA Green Card class, color 31, leaf 3, and staple 36 for nearby 
shipment.  Agents for mills in Taiwan inquired for a moderate volume of color 42, 
leaf 4, and staple 35 for nearby shipment.  No sales were reported. 

Trading 
..
No trading activity was reported.   


South Central Markets Regional Summary 


North Delta 

Spot cotton trading was inactive.  Supplies of available cotton were moderate.  
Demand was light.  Average local spot prices were higher.  Trading of CCC-loan 
equities was inactive. Producers booked a light volume of CCC-loan equities while 
continuing to monitor commodity markets and international trade developments as planting season approaches.   

Another winter storm system during the week brought more rain and high winds to many areas.  
Approximately 2 inches of rainfall was reported.  The National Weather Service issued a 
wind advisory, to go along with the river flood warnings already in effect; the 
Mississippi River at Memphis was flowing more than 7 feet above flood stage.  No additional 
rain was in the extended forecast, but skies were expected to remain mostly cloudy to partly 
cloudy for several days.  Daytime temperatures dropped from the upper 60s into the low 50s.  
Overnight lows were in the 30s and 40s, slightly below historical averages.  No fieldwork 
was reported, due to saturated soils and flood conditions.   
 
South Delta 

Spot cotton trading was inactive.  Supplies of available cotton were moderate.  Demand
 was light.  Average local spot prices were higher.  Trading of CCC-loan equities was 
inactive. Producers booked a light volume of CCC-loan equities while continuing to monitor 
commodity markets and international trade developments as planting season approaches.   

More rain and high winds characterized the weather pattern as another winter storm moved 
through many areas.  Less than 2 inches of rainfall was reported, but the moisture 
exacerbated existing flood conditions.  The National Weather Service issued a wind advisory, 
to go along with the river flood warnings already in effect.  The Mississippi River at 
Greenville, MS was flowing at about 6 feet above flood stage; most tributaries were also 
overflowing their banks.  Mostly cloudy to partly cloudy conditions were expected for the 
next few days.  Daytime temperatures dropped into the mid-50s.  Overnight lows were in the 
30s and 40s, slightly below historical averages.  No fieldwork was reported, due to saturated 
soils and flood conditions. Producers continued hoping for an extended period of warm, dry 
weather in order to prepare fields for timely spring planting; otherwise, corn acreage 
could be replaced with alternative crops.   

TradIng 
  
North Delta 
..
Producers booked a light volume of CCC-loan equites of 12.00 to 16.00 cents per pound. 

South Delta 
..
Producers booked a light volume of CCC-loan equites of 12.00 to 16.00 cents per pound. 


Southwestern Markets Regional Summary      .
 

East Texas 

Spot cotton trading was active.  Supplies and producer offerings were moderate.  Demand was 
moderate.  Average local spot prices were higher.  Producer interest in forward contracting 
was light.  Trading of CCC-loan equities was active.  Foreign inquiries were light.  Interest 
was best from Indonesia, Taiwan, and Vietnam.    
     
Planting was underway in the Coastal Bend.  Fieldwork made good progress in the Rio Grande Valley. 
Daytime temperature highs were in the upper 70s to low 90s and nighttime lows in the mid-50s to low 
70s.  Producers were busy sowing seed ahead of rainfall on March 14.  According to local experts, 
about 15 percent of acres are planted.  Cotyledon emergence was reported. Severe storms moved through 
the Blackland Prairies that brought rain and wind gusts over 100 miles per hour.  Structural damage 
and power outages were reported.  Trees were down, and blocked roadways in some cases.  Ginning 
continued in Kansas.  The topsoil and subsoil moisture supplies were rated adequate to surplus, 
according to the National Agricultural Statistics Service�s Crop Progress report released on Mach 11.  
Industry reports indicated that an increase in planted acres were expected.  Ginning continued in 
Oklahoma.  Ginning was expected to conclude in April. 
    
West Texas
 
Spot cotton trading was active.  Supplies and producer offerings were moderate.  Demand was 
moderate.  Producers monitored the market closely to determine marketing strategies for the
remainder of the crop.  Average local spot prices were higher.  Producer interest in forward 
contracting was light.  Trading of CCC-loan equities was active.  Foreign inquiries were light.  
Interest was best from Indonesia, Taiwan, and Vietnam.    
     
In Lubbock, daytime high temperatures were in the low 40s to low 70s, with overnight lows in the 
upper 20s to mid-40s.  Cloudy, foggy conditions persisted, and up to three and one-quarter inches 
of rainfall was received.  The rainfall was beneficial to help restore moisture in the topsoil.  
Wind gusts up to 65 miles per hour were reported with sustained winds at 40 to 50 miles per hour.  
A tornado was reported in Anton that caused some structural damage.  Dirt blew, and field work was 
paused until calmer conditions returned.  Producers are enthused about the seed technologies, but 
available seed is being booked.  Shortages of popular seed varieties were reported.  Meetings were attended.                 

Trading 
 
East Texas 
..
In Texas, a light volume of mostly color 62, leaf 3, staple 30 and 31, mike 43-48, strength 
averaging 24.1, and uniformity averaging 76.9 sold for around 42.00 cents per pound, 
FOB warehouse (compression charges not paid). 
..
In Oklahoma, a moderate volume of mostly color 31, leaf 2 and 3, staple 32 and 33, mike 47-51, 
strength 25-29, and uniformity 77-79 sold for around 56.00 cents, FOB car/truck (compression charges not paid). 
..
In Kansas, a light volume of mostly color 31, leaf 2, staple 36 and 37, mike 34-44, 
strength 27-30, and uniformity averaging 80.5 sold for around 66.50 cents, same terms as above.  
..
A heavy volume of CCC-loan equities traded for 7.50 to 16.25 cents. 

West Texas 
..
A heavy volume of mostly color 31, leaf 3, staple 36 and 37, mike 32-49, strength 27-32, and 
uniformity 79-83 sold for around 73.50 cents per pound, FOB car/truck (compression charges not paid).   
..
A heavy volume of mostly color 41, leaf 6, staple 37 and longer, mike 35-47, strength 25-34, 
uniformity 79-83, and 100 percent extraneous matter sold for around 61.75 cents, same terms as above.   
..
A mixed lot containing a moderate volume of mostly color 33, leaf 7 and better, staple 36 and 
longer, mike 25-55, strength 27-32, uniformity 77-80,  and 25 percent extraneous matter 
sold for around 54.50 cents, same terms as above.   
..
A heavy volume of CCC-loan equities traded for 6.25 to 15.25 cents. 


Western Markets Regional Summary 
 

Desert Southwest (DSW) 

Spot cotton trading was moderate.  Supplies and demand were moderate.  Average local prices 
were higher.  No forward contracting or domestic mill activity was reported.   Foreign 
mill inquiries were light to moderate.    
     
Daytime high temperatures were in the low 30s to low 80s, and overnight lows were 
in the single digits to mid-30s.  In Arizona, planting was 15 percent completed 
compared to 8 percent last year, according to the National Agricultural Statistics 
Service�s Crop Progress and Condition report released on March 11.  Topsoil and 
subsoil moisture conditions were 90 percent adequate compared to 79 percent last year.    
A series of cold fronts moved through New Mexico and Texas, which brought some rainfall 
and 60 plus mile per hour wind gusts.  Dust storms prevented field activity.  Storms 
and high winds caused power outages across El Paso that affected around 2,500 people.  
Planted acres were expected to increase in New Mexico, but significantly decrease in El Paso.    
 
San Joaquin Valley (SJV)
 
Spot cotton trading was inactive.  Supplies and demand were moderate.  Average local 
prices were higher.  No forward contracting or domestic mill activity was reported.   
Foreign mill inquiries were light.    
     
In Visalia, daytime high temperatures were in the high 50s to low 60s, and overnight 
lows were in the high 30s to mid-40s.  Light rainfall was received early in the 
reporting period.  Fields were too soggy to support heavy equipment, but most 
fields had been prepared for planting.  Ginning was winding down.        
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies and demand were moderate.  Average 
local prices were steady.  No forward contracting or domestic mill activity was 
reported.   Foreign mill inquiries were light to moderate.   
     
In the San Joaquin Valley, fields were too wet to support planting equipment following 
recent rainfall.  Daytime high temperatures in the nearby forecast were expected to 
be in the 80s, and if sustained would spur planting.  Ginning continued.  Topsoil 
and subsoil conditions were 90 percent adequate compared to 79 percent last year in 
Arizona, according to the National Agricultural Statistics Service�s Crop Progress 
and Condition report released on March 11.  Cotton planting was 15 percent completed 
compared to 8 percent this time last year.  Planting was underway in Yuma, AZ.  
Central Arizona received 1 inch of rain and snow in higher elevations. Producers 
were encouraged with additional moisture.  El Paso area producers made decisions 
on how best to use irrigation water at the advisement of the water district to 
plant 25 percent of last year�s acres.  Some will use their allocation toward 
other crops such as pecan orchards and not plant AP.  Others were expected to 
decrease planted acres.     

Trading 
 
Desert Southwest 
..
A light volume of mostly color 21, leaf 3 and better, staple 38 and longer, mike 25-42, 
strength 29-32, and uniformity 80-82 sold for around 70.25 cents per pound, uncompressed FOB warehouse.   
..
A light volume of mostly color 21, leaf 3 and better, staple 39 and longer, mike 27-36, 
strength 29-32, and uniformity 79-82 sold for around 66.25 cents, same terms as above.   
..
A mixed lot containing a heavy volume of mostly color 51 and better, leaf 4 and better, 
staple 36 and longer, mike 43-52, strength 28-31, and uniformity 80-82 sold for around 63.25 cents, same terms as above.   

San Joaquin Valley 
..
No trading activity was reported. 
 
American Pima 
..
No trading activity was reported. 


USDA ANNOUNCES SPECIAL IMPORT QUOTA #21 
FOR UPLAND COTTON 
March 14, 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 March 21, 2019, allowing 
importation of 12,665,348 kilograms (58,171 bales) of upland cotton.  
     
Quota number 21 will be established as of March 21, 2019, and will apply to upland cotton 
purchased not later than June 18, 2019, and entered into the U.S. not later than 
September 16, 2019. The quota is equivalent to one week's consumption of cotton by domestic 
mills at the seasonally-adjusted average rate for the period November 2018 through 
January 2019, 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.