Mp_cn812 
February 12, 2021 
Weekly Cotton Market Review 

 


Average spot quotations were up 368 points from 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 81.08 cents per pound for 
the week ending Thursday, February 11, 2021. The weekly average was up from 77.40 cents last 
week and from 63.67 reported the corresponding period a year ago. Daily average quotations 
ranged from a low of 78.81 cents Friday, February 5, to a season high of 83.00 cents Tuesday, 
February 9. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended 
February 11 totaled 41,485 bales. This compares to 42,139 reported last week and 32,629 spot 
transactions reported the corresponding week a year ago. Total spot transactions for the 
season were 1,221,819 bales compared to 1,271,622 bales the corresponding week a year ago. 
The ICE March settlement price ended the week at 86.41 cents, compared to 84.28 cents last week. 


Southeastern Markets Regional Summary 


Spot cotton trading was light.  Supplies were light.  Demand was good. Producer offerings 
were moderate.  Average local spot prices were higher.  Trading of CCC-loan equities was 
inactive. The COVID-19 Pandemic continues to negatively affect cotton demand and disrupt supply chains. 
     
Mostly cloudy to overcast conditions prevailed across the lower Southeast during the period.  
Daytime high temperatures varied from the upper 30s to low 60s.  Widespread shower activity 
brought light to moderate precipitation across the region.  Weekly accumulated precipitation 
totals measured from 1 to 2 inches across south Alabama, the Florida Panhandle, and south 
Georgia.  Lesser accumulations from trace amounts to around one half of an inch were 
received across northernly areas. Fieldwork advanced as dry conditions allowed.  In Georgia, 
larger gins continued to process backlogs of modules.  Producers, ginners, and industry 
members attended the National Cotton Council�s annual meeting virtual event.   
     
Mostly cloudy to overcast conditions were observed across the upper Southeast during the period.  
Daytime high temperatures were in the 50s to 60s.  Scattered showers brought around one-half 
of an inch to one inch of moisture to areas of the eastern Carolinas and Virginia throughout 
the week.  Field activities were limited due to wet conditions.  Gins remained on gin days 
as the last remaining modules were retrieved from fields.  Producers, ginners, and industry 
members attended the National Cotton Council�s annual meeting virtual event. 
 
Textile Mill 

Buyers for domestic mills purchased a moderate volume of color 41, leaf 3, and staple 36 
for April through December delivery. Mill buyers also made inquiries for 2021-crop cotton, 
color 41, leaf 4, and staple 34 and longer for November 2021 through January 2022 delivery. 
No additional sales were reported.  Reports indicated that mills continued to incrementally 
increase operating schedules as warranted by increased finished product demand.   Yarn 
demand was good.  Mills continued to produce personal protective equipment for frontline 
workers and military supplies. 
     
Demand through export channels was moderate.  Agents throughout the Far East inquired for 
any discounted or low-grade styles of cotton. 
 
Trading 
� 
A moderate volume of color 41 and 51, leaf 3-5, staple 35-37, mike 35-49, strength 26-30, 
uniformity 80-82, and 100 percent seed coat fragments sold for around 81.00 cents per pound, 
FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). 


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 and daily infection rates were steadily increasing in many areas. 
     
Overcast conditions and seasonably cool temperatures prevailed during most of the week.  
A winter ice storm moved through the region late week and overnight temperatures dropped 
into the teens and 20s.  Highs were in the 30s to 50s.   Accumulated precipitation measured 
less than 1 inch in most areas.  According to the U.S. Drought Monitor, rainfall remained 
below average despite recent showers, continuing the expansion of abnormally dry to moderate 
drought in northeastern Arkansas and western Tennessee. No field activities were reported.  
Ginning was practically completed for the season.  Producers were closely watching commodity 
prices as they continued planning for the upcoming crop season. Producers and other interested 
parties participated in virtual industry meetings and educational seminars at both the 
national and regional levels.
 
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 and daily infection rates were steadily increasing in many areas. 
     
Overcast conditions prevailed for much of the reporting period.  A winter cold front moved 
through the region during the week and overnight temperatures dropped into the 30s.  Highs 
were in the 30s to 50s.  Scattered showers brought less than 1 inch of rain to most areas.  
Areas in northern Mississippi experienced freezing rain, which forced some businesses to 
close due to icy road conditions.  According to the U.S. Drought Monitor, areas of moderate 
drought expanded throughout central Louisiana and northwestern Mississippi despite some 
precipitation. Producers were carefully monitoring commodity prices as they continued planning 
crop selections for planting season.  Producers and other interested parties participated in 
virtual industry meetings and educational seminars. 

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 good. Average local spot prices were higher. Producer interest in forward contracting 
was heavy. Trading of CCC-loan equities was active. Foreign inquiries were moderate. 
Interest was best from China, and Pakistan. The COVID-19 Pandemic continued to influence 
market uncertainty and impact global cotton demand. Medical communities continued 
treating positive cases. Vaccination clinics were held, and local cases were declining.  
      
In the Rio Grande Valley, the final planting date for cotton is 7 weeks away, so producers 
were planting grain crops and pre-watering cotton fields. Fieldwork was active ahead 
of an approaching cold front that is forecasted to bring good rain chances.  Pre-plant 
herbicide and fertilizer were applied in Upper Coast and Coastal Bend. Grain sorghum 
seed shortages were reported by local sources and could shift some acres to cotton. 
Producers in the Blackland Prairies carefully considered market variabilities to 
determine which crops to sow. New cotton seed varieties were announced. Herbicide was applied.  
     
Extreme winter conditions prevailed in Kansas with daytime temperature highs in the 
low teens to low 50s and overnight lows in the negative digits to mid-30s. Windchill 
factors were below zero.  Fieldwork and ginning were at a standstill.  In Oklahoma, 
several gins continued pressing operations and submitted samples for grading service. 
Harvesting was completed.  
 
West Texas 

Spot cotton trading was active. Supplies and producer offerings were moderate. 
Demand was good.  Average local spot prices were higher.  Producer interest in forward 
contracting was light. Trading of CCC-loan equities was active. Foreign inquiries were 
moderate. Interest was best from China, and Pakistan. The COVID-19 Pandemic continued 
to impact commodity markets and global cotton demand. Infection rates declined, but 
continued to pressure local medical institutions and resources. Vaccination distributions 
were underway for first and second doses.  
     
Cold, windy conditions prevailed with daytime highs in the upper 20s to mid-70s and 
overnight temperatures in the single digits to upper 30s. Bouts of sunshine were 
intermittently present early in the period and an Arctic airmass moved into the region 
late in the period. Fieldwork was interrupted since most days began with freezing drizzle 
and fog that caused icy roadways. Snow was received at some locations. Harvesting was 
completed in the Rolling Plains. Ginning continued mostly in the Panhandle and near the 
Red River, but a few gins finished for the season.     
 
Trading 
 
East Texas 
� 
In Texas, a mixed lot containing a light volume of color 33 and better, leaf 3-5, staple 34 
and longer, mike 37-48, strength 27-31, and uniformity 76-82 sold for around 70.75 cents 
per pound, FOB warehouse (compression charges not paid).   
� 
In Kansas, a moderate volume of color 31 and 41, leaf 3 and 4, staple 36 and longer, mike 
averaging 35.1, strength 29-32, and uniformity 80-81 sold for around 77.00 cents, FOB car/truck (compression charges not paid). 
� 
A light volume of color 43 and 44, leaf 4 and 5, staple 36 and longer, mike 27-29, 
strength 26-32, and uniformity 78-80 sold for around 64.50 cents, same terms as above. 
� 
In Oklahoma, lots containing a heavy volume of color 31, leaf 2-4, staple 33 and longer, 
mike 35-38, strength 26-35, uniformity 77-81, and 50 percent extraneous matter sold 
for 74.50 to 75.75 cents, same terms as above.  
� 
A heavy volume of CCC-loan equities traded for 16.50 to 25.00 cents. 
� 
Producers booked a heavy volume of 2021-crop cotton at 72.00 to 80.00 cents.  
 
West Texas 
� 
A moderate volume of color 21 and 31, leaf 2 and 3, staple 38 and longer, mike 
averaging 37.1, strength   30-35, and uniformity 79-82 sold for around 85.25 
cents per pound, FOB car/truck (compression charges not paid).   
� 
Lots containing a heavy volume of color 11 and 21, leaf 1 and 2, staple 33-35, 
mike 35-49, strength 28-33, and uniformity 77-82 sold for 82.00 to 83.50 cents, 
same terms as above. 
� 
A moderate volume containing color 31 and better, leaf 2 and 3, staple 35 and longer, 
mike 35-50, strength 28-33, and uniformity 78-82 sold for around 78.25 cents, same terms as above. 
� 
A light volume of color 31 and better, leaf 4 and better, staple 34 and 35, mike 
averaging 33.5, strength     28-35, uniformity 78-82, and 25 percent extraneous 
matter sold for around 72.00 cents, same terms as above. 
� 
A heavy volume of CCC-loan equities traded for 10.00 to 25.00 cents. 


Western Markets Regional Summary  


Desert Southwest (DSW) 

Spot cotton trading was active. Supplies and producer offerings were moderate.  
Demand was moderate.  Average local spot prices were higher. Producers delivered 
previously contracted cotton to merchant and cooperative marketing pools. New-crop 
contracting was active as ICE December futures broke over 80.00 cents.  No domestic 
mill activity was reported.   Foreign mill inquiries were good.  The COVID-19 Pandemic 
continues to pressure worldwide economies and labor.      
     
Sunny and dry conditions continued in the DSW.  Above-average daytime high temperatures 
were in the low to mid-70s in central Arizona, New Mexico, and El Paso, TX.   
No moisture was received in the period. Fieldwork was active. DSW producers considered 
spring planting options. The industry attended the National Cotton Council virtual meeting.  Ginning continued.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive. Supplies and demand were moderate. Average local 
spot prices were higher. Producers delivered previously contracted cotton to 
merchant and cooperative marketing pools. No forward contracting or domestic mill 
activity was reported.  Foreign mill inquiries were light.   The COVID-19 Pandemic 
continues to pressure worldwide economies and labor.   
     
Cloudy conditions moved into the region late in the period.  Rain was expected for the 
Valley and snow in elevations over 7,000 feet in the Sierras as a storm pushed in from the 
Pacific.  Temperatures were in the low 60s. Fieldwork was active. The industry attended 
the National Cotton Council virtual meeting. 
 
American Pima (AP) 

Spot cotton trading was active. Supplies and producer offerings of 2020-crop cotton were 
heavy. Demand was good, but slowed as AP offering prices were adjusted higher. Producers 
delivered previously contracted cotton to merchant and cooperative marketing pools. Average 
local spot prices were higher. No forward contracting was reported.   Foreign mill inquiries 
were good.  Shippers offering prices were higher for 2020-crop cotton.  No forward sales of 
2021-crop were reported.  The COVID-19 Pandemic continues to pressure worldwide economies and labor.   
     
Above-average temperatures and dry conditions continued for the Far West. No moisture was 
recorded in the period.  Clouds moved into California with the promise of rain.  The nearby 
forecast showed rain for the Desert Southwest.  Fieldwork was active. The industry attended 
the National Cotton Council virtual meeting.  Ginning continued.   
 
Trading 
 
Desert Southwest 
� 
A moderate volume of color 11 and 21, leaf 2 and better, staple 36 and longer sold for 
82.00 to 83.50 cents per pound, uncompressed, FOB warehouse.   
� 
A moderate volume mixed lot mostly color 21 and better, leaf 2 and better, staple 35 and 
longer sold for around 475 points off ICE March futures, same terms as above.     
� 
A heavy volume of 2021-crop cotton for contract base quality color 31 and better, leaf 3 
and better, and  staple 36 and longer was contracted for around 80.50 to 81.50 cents.   

San Joaquin Valley 
� 
No trading activity was reported.   

American Pima 
� 
A moderate volume of mostly color 1, leaf 1, and staple 48 and longer sold for around 
135.00 to 137.00 cents per pound, uncompressed, FOB warehouse. 


USDA ANNOUNCES SPECIAL IMPORT QUOTA #17 
FOR UPLAND COTTON 
February 11, 2021 


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 18, 2021, allowing importation of 
9,464,255 kilograms (43,469 bales of 480-lbs) of upland cotton.  
     
Quota number 17 will be established as of February 18, 2021 and will apply to upland cotton 
purchased not later than May 18, 2021 and entered into the U.S. not later than August 16, 2021. 
The quota is equivalent to one week's consumption of cotton by domestic mills at the 
seasonally-adjusted average rate for the period September 2020 through November 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.