Weekly Cotton Market Review, narrative
Mp_cn812 
September 21, 2018 
Weekly Cotton Market Review  


Average spot quotations were 288 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 76.10 cents per pound for the week ending 
Thursday, September 20, 2018. The weekly average was down from 78.98 last week, but up from 
67.71 cents reported the corresponding period a year ago. Daily average quotations ranged from 
a high of 78.19 cents Friday, September 14 to a season low of 74.79 cents Thursday, September 20. 
Spot transactions reported in the Daily Spot Cotton Quotations for the week ended September 20 
totaled 3,016 bales. This compares to 216 reported last week and 3,280 spot transactions reported 
the corresponding week a year ago. Total spot transactions for the season were 15,143 bales compared 
to 30,478 bales the corresponding week a year ago. The ICE December settlement prices ended the 
week at 78.47 cents, compared to 81.51 cents last week. 


Southeastern Markets Regional Summary 
 

Spot cotton trading was inactive.  Supplies and producer offerings were light.  
Demand was moderate. Average local spot prices were lower.  Trading of CCC-loan 
equities was inactive. 
     
Hurricane Florence made landfall along the North Carolina coast as a Category 1 storm early 
morning  on Friday, September 14. Florence brought devastating storm surge flooding, heavy 
rain, and damaging winds.  The areas most affected include the Pee Dee region of South Carolina 
northward to the central Coastal Plains region of North Carolina.  Some areas experienced 
accumulated rainfall totals measuring up to 36 inches during the week before the storm blew 
north.  Hurricane-force winds battered plants laden with bolls and cotton had strung out in 
some fields that received heavy rainfall.  Damage assessments were underway; estimates on 
crop losses were not immediately available, but catastrophic losses were anticipated in areas 
directly in the path of the storm.  The sun was shining by early week, but fields remained 
saturated with low-lying areas flooded.  In addition, flooding is expected to worsen over the 
weekend in areas of southeast North Carolina and northeast South Carolina as major waterways 
continue to rise above flood stage before they crest.  Remnants of the storm brought an inch or 
more of moisture to areas of Virginia late week.  Producers welcomed warm and sunny conditions 
following the storm and defoliants were being applied in areas that were accessible. According 
to the National Agricultural Statistics Service�s (NASS) crop progress report released 
September 17, cotton bolls opening reached 59 percent in North Carolina, 43 in Virginia, and 
37 percent in North Carolina.  In North Carolina, the percentage of the crop rated 
good-to-excellent declined 14 percentage points from the previous period. 
     
Mostly sunny to partly cloudy conditions prevailed over the lower Southeast during the period, 
with warm daytime high temperatures in the low to mid-90s.  Spotty shower activity brought 
very light precipitation to some areas throughout the week.  Full irrigation schedules were 
maintained in areas where soil moisture conditions had deteriorated due to dry conditions. 
The crop advanced at a rapid     pace. Defoliation was getting underway in the earliest-planted fields.  
Gins prepared machinery for the beginning of the ginning season.  Harvesting was underway in some 
of the earliest-planted fields in north Alabama and south Georgia; a few gins plan to start pressing 
operations within the next week.   According to NASS, cotton bolls opening reached 67 percent 
in Alabama and 55 percent in Georgia.     
 
Textile Mill 

Buyers for domestic mills inquired for a moderate volume of color 42 and 52, leaf 5 and better, 
and staple 35 and longer for January through March 2019 delivery.  No sales were reported.  
Reports indicated most mills have covered their raw cotton needs through the fourth quarter 2018.  
Demand for open-end and ring-spun yarn was moderate.  Most mills operated five to seven days.   
     
Demand through export channels was moderate.  Representatives for mills throughout the Far East 
inquired for any discounted styles of cotton.   

Trading 
..
No trading activity was reported.   


South Central Markets Regional Summary   


North Delta 

Spot cotton trading was inactive.  Supplies of available cotton were light.  Demand was light.  
Average local spot prices were lower.  Trading of CCC-loan equities was inactive. No 
forward contracting was reported. 

The crop made excellent progress under clear skies, accompanied by unseasonably hot 
temperatures. Daytime highs were in the upper 90s, with the heat index reported at 103 in 
some places. Overnight lows were in the upper 60s in most areas.  The heat is expected to 
generate afternoon pop-up thunderstorms in the week ahead, which may delay outdoor activities. 
Producers were hopeful that a good top crop will result thanks to the additional heat units. 
According to the National Agricultural Statistics Service�s (NASS) Crop Progress report 
released September 17, the crop condition in Arkansas was rated 96 percent fair-to-excellent, 
88 in Missouri, and 96 percent in Tennessee.  NASS also reported that harvesting had reached 
1 percent in Arkansas and 2 percent in Missouri and Tennessee. Ginning is expected to begin 
as soon as gins have sufficient modules on their yards for steady operations. 
 
South Delta
 
Spot cotton trading was inactive.  Supplies of available cotton were light.  Demand was light.  
Average local spot prices were lower.  Trading of CCC-loan equities was slow.  No forward 
contracting was reported. 
 
Hot and clear weather allowed the crop to make excellent progress during the week. Daytime high 
temperatures were in the upper 90s. Overnight lows were in the low 70s.  Defoliation gained 
momentum as fields reached full maturity.  A few fields in Mississippi were too soft to support 
equipment after heavy rainfall last week.  Producers in Louisiana and Mississippi commenced 
harvesting cotton in areas not affected by excessive precipitation.  According to the National 
Agricultural Statistics Service�s (NASS) Crop Progress report released September 17, the crop 
condition in Louisiana was rated at 97 percent fair-to-excellent and 95 percent in Mississippi. 
NASS also reported that harvesting had reached 6 percent in Mississippi and 14 percent in Louisiana.  
Ginning was underway in a few areas. 

Trading 
 
North Delta 
..
No trading activity was reported. 

South Delta 
..
A light volume of old-crop CCC-loan equities traded for around 14.50 cents per pound. 


Southwestern Markets Regional Summary


East Texas 

Spot cotton trading was slow.  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 inquiries were light to moderate.   
     
The Upper Coast and Coastal Bend received around 10 to 14 inches of rainfall early in 
the reporting period, according to local experts.  Harvesting problems persisted with soggy 
fields and rainy conditions.  Lots of modules were transported ahead of the storms to gin 
yards, but some modules remained in wet fields.  Intermittent thunderstorms delayed field 
activities in central and eastern Texas.  Most of the fields had been harvested in the 
southern Blackland Prairies, but only about half are completed in the northern parts.  
Gin yards were loaded and ginning continued uninterrupted.  In Kansas, stands progressed, 
but fields were muddy from recent rainfall.  Producers looked forward to warmer and drier 
conditions to help bolls fill ahead of harvest. According to the National Agricultural 
Statistics Service�s (NASS) Crop Progress report released on September 17, bolls opening was 
38 percent, ahead of 28 last year and the five-year average of 24 percent. The condition was 
rated 25 percent fair, 55  good, and 17 percent excellent.  In Oklahoma, producers were 
encouraged with late-season sunny conditions, daytime high temperatures in the low 90s, and 
overnight temperatures in the low 70s.  Dryland is expected to make 2 plus bales per acre.  
Harvest aids have been applied to some fields.  Bolls opening was 49 percent, ahead of 42 
last year and the         five-year average of 40 percent. The condition was rated 15 percent poor, 
52 fair, and 28 percent good, according to NASS. 
 
West Texas
 
Spot cotton trading was inactive.  Supplies and producer offerings were light.  Demand was very 
light. Average local spot prices were lower.  Producer interest in forward contracting was light.  
Trading of CCC-loan equities was inactive.  Foreign inquiries were light to moderate.  
     
Intermittent rain showers delayed field progress in some locations early in the reporting period.   
Daytime temperature highs were in the mid-70s to mid-80s, and overnight lows were in the upper 
50s to low 60s.  Generally, the crop is two weeks ahead of schedule and some fields have had boll 
openers and defoliants applied.  Some dryland fields that have short plants are expected to yield 
less than 2 bales per acre.  Dryland fields that received rainfall are expected to produce yields 
above 2 bales per acre.  Irrigated fields are expected to yield 3 or more bales per acre. 
Thunderstorms entered the region overnight on September 20 and brought additional precipitation 
to some locations.    

Trading 
 
East Texas 
..
In Texas, a moderate volume of even-running lots containing mostly color 31 and better, leaf 1 and 2,      
staple 37 and longer, mike 41-45, strength 28-31, and uniformity 80-83 sold for around 79.00 cents 
per pound, FOB warehouse (compression charges not paid).    
..
A mixed lot containing a moderate volume of mostly color 41 and better, leaf 3 and better, staple 35 
and longer, mike 38-49, strength 27-32, and uniformity 77-82 sold for around 75.50 cents, FOB car/truck 
(compression charges not paid).  

West Texas 
..
No trading activity was reported. 


Western Markets Regional Summary 
 

Desert Southwest (DSW) 

Spot cotton trading was inactive.  Supplies and demand were light.  Average local spot prices were 
lower.  No forward contracting or domestic mill activity was reported.  Foreign mill inquiries were 
light.      
     
Temperatures were in the mid-to-high 100s in Arizona.    Cloudy and humid conditions entered the 
state late in the period.  Approximately one-quarter of an inch of scattered rainfall was received.  
Defoliation and harvesting was active in Yuma.  Ginning continued.  Producers shredded stalks and 
some rood cotton was harvested.   Some fields near the Colorado River on the California side received 
the last irrigation of the season.  The crop quickly approached cut-out in central Arizona, New Mexico, 
and El Paso, TX.  Producers prepared equipment for harvest.   
 
San Joaquin Valley (SJV) 

Spot cotton trading was inactive.  Supplies and demand were light.  Average local spot prices 
were lower.  No forward contracting or domestic mill activity was reported.  Foreign mill inquiries 
were light.     
     
Temperatures were in the high 80s.  Industry experts reported that the crop had a good boll load.   
The crop continued to make good progress as it approached cut-out stage.   
 
American Pima (AP) 

Spot cotton trading was inactive.  Supplies and demand were light.    Average local spot prices were 
steady.  No forward contracting or domestic mill activity was reported.  Foreign mill inquiries remained light.   
     
Temperatures were in the 80s to100s in the Far West.   The crop made good progress throughout the region.  
The crop approached cut-out stage.  In the San Joaquin Valley, the first shot of defoliants were applied in 
the most mature fields.  Ginning is expected to begin in October after the lower fall electrical rates 
become available.   

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 20, 2018 


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 27, 2018, allowing importation of 13,296,430 kilograms 
(61,069 bales) of upland cotton.  
     
Quota number 22 will be established as of September 27, 2018, and will apply to upland cotton purchased 
not later than December 25, 2018, and entered into the U.S. not later than March 25, 2019. The quota is 
equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate 
for the period May 2018 through July 2018, 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.