Mp_cn206 April 26, 2024 Weekly Cotton Market Review Spot quotations averaged 103 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 73.20 cents per pound for the week ending Thursday, April 25, 2024. The weekly average was down from 74.23 cents last week and from 76.93 cents reported the corresponding period a year ago. Daily average quotations ranged from a high of 74.17 cents Monday, April 22 to a low of 72.76 cents Wednesday, April 24. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended April 25 totaled 680 bales. This compares to 4,406 bales reported last week and 6,570 bales reported the corresponding week a year ago. Total spot transactions for the season were 814,037 bales compared to 598,354 bales the corresponding week a year ago. The ICE July settlement price ended the week at 81.08 cents, compared to 80.61 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. Cloudy and overcast conditions during the weekend gave way to sunny skies and breezy weather later in the week across the lower Southeast. Seasonably warm daytime temperatures were in the 70s and 80s. Widespread showers brought light to moderate moisture to areas throughout Alabama and Georgia. Weekly accumulated precipitation totals measured from trace amounts to around 1 inch of moisture. Fieldwork advanced, but fertilizer applications were hindered in some areas due to high winds. Planting was underway on a limited basis, but some producers were waiting to begin sowing due to cool overnight temperatures. A mix of sunny to overcast conditions was observed across the upper Southeast. Daytime high temperatures varied from the 60s to 80s. Light to moderate precipitation was received across the region over the weekend and early in the week. Precipitation totals measured from trace amounts to around 1 inch of moisture for the week across the eastern Carolinas and Virginia. Breezy conditions reduced soil moisture and abnormally dry conditions expanded in North Carolina. Producers applied herbicides and fertilizer in preparation for planting. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 3, and staple 36 and longer for June through October delivery. No sales were reported. No additional inquiries were reported. Mill buyers maintained a cautious undertone as they limited production schedules to maintain balanced yarn inventories. Demand through export channels was moderate. Agents for mills in Taiwan inquired for a moderate volume of Pima cotton, color 2, leaf 2, and staple 46 for June shipment. Agents for mills in Indonesia inquired for a moderate volume of color 31, leaf 3, staple 36 and 37 for August through October shipment. No sales were reported. Trading � No trading activity was reported. South Central Markets Regional Summary North Delta Trading of spot cotton was inactive. Trading of CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. No forward contracting was reported. Partly cloudy conditions with light precipitation characterized the weather pattern during the week, although only trace amounts of moisture were reported in most areas. Daytime temperatures varied from the low 60s to the mid-80s throughout the reporting period. Overnight lows dipped into the 30s and 40s, more than 10 degrees below average for this time of the year. Local experts reported that cold and saturated soils hindered outdoor activities in a few locales. Fieldwork was accomplished in areas where soils were firm enough to support equipment. According to the National Agricultural Statistics Service�s Crop Progress report, released on April 22, planting advanced slowly to 6 percent in Arkansas, 3 in Missouri, and was underway at 1 percent in Tennessee. Planting was expected to gain momentum as fields continued to dry. Virtual and in-person industry meetings were being planned and attended at state and national level. South Delta Spot cotton trading was inactive. Trading of CCC-loan equities was inactive. Supplies of available cotton were light. Demand was light. Average local spot prices were lower. No forward contracting was reported. Partly cloudy conditions with light precipitation characterized the weather pattern during the week. Up to 1 inch of moisture was reported in most areas. Daytime temperatures varied from the mid-60s to the mid-80s throughout the period. Overnight lows dipped into the low 40s, about 15 degrees below average for this time of the year. River flood warnings remained in effect in many areas. Local experts reported that saturated soils prevented producers from engaging in outdoor activities in a few locales. Fieldwork, including the application of fertilizers and burndown chemicals, was accomplished in areas where soils were firm enough to support equipment. According to the National Agricultural Statistics Service�s Crop Progress report, released on April 22, planting was underway at 5 percent in Louisiana and 1 percent in Mississippi. Virtual and in-person industry meetings were being planned and attended at state and national level. Trading North Delta � No trading activity was reported. South Delta � No trading activity was reported. Southwestern Markets Regional Summary East Texas-South Texas Spot cotton trading was inactive. 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 mill inquiries were moderate. Interest was best from China, Pakistan, and Turkey. In East Texas, predominately sunny to partly cloudy skies prevailed. Daytime high temperatures remained in the mid-to-upper 70s and low 80s. Overnight temperature lows ranged from the upper 40s to the low 70s by the end of the reporting period. Rain showers produced over three-quarters of an inch of moisture in some areas of central Texas, and chances for additional showers were in the forecast. In the Blackland�s, planting activities continued to progress in fields dry enough to support equipment. Local sources reported recently planted cotton was emerging and in good condition. In South Texas, thundershowers brought over three-quarters of an inch of beneficial precipitation to parts of the Rio Grande Valley (RGV). Daytime high temperatures ranged from the low 70s to the low 90s, with nighttime temperature lows in the low 60s to the mid-to-upper 70s. Producers in the Upper Coast worked to finalize planting ahead of the final planting dates for insurance. Local experts reported high thrips populations in emerging cotton in some fields in the Upper Coast. Pesticide treatments were applied in fields in the RGV as windy conditions allowed. West Texas-Kansas-Oklahoma Spot cotton trading was inactive. 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 mill inquiries were moderate. Interest was best from China, Pakistan, and Turkey. In Texas, partly cloudy skies and windy conditions were observed. Daytime high temperatures were in the mid-60s to low 80s, with nighttime temperature lows in the mid-40s to the mid-to-upper 50s. Light accumulations of rainfall were reported in parts of the Northern Low Plains. Fieldwork continued to make good progress as producers prepped fields for planting. Warm nighttime temperatures are needed to increase soil temperatures to optimal levels before sowing activities begin. In Kansas, windy but mostly favorable conditions gave way to chances for inclement weather including large hail and damaging winds late in the week. Daytime high temperatures were in the mid-60s to the upper 80s, with nighttime temperature lows in the upper 40s to the mid-50s. Fieldwork was underway, and producers continued to weigh their options to determine the number of cotton acres to be planted. Rainfall is needed to improve sub-soil moisture in parts of Kansas. In Oklahoma, partly cloudy skies and gusty winds were prevalent during the reporting period. Fieldwork was active. Producers applied fertilizer to fields and prepped beds. Planting is anticipated to begin in next week. Chances for precipitation are in the forecast and would be beneficial to improve soil moisture as planting nears. Trading East Texas-South Texas � No trading activity was reported. West Texas-Kansas-Oklahoma � In Texas, a lot containing a light volume of color 22 and better, leaf 2-4, staple 35-37, mike averaging 30.7, strength averaging 32.1, and uniformity 80.1 sold for around 68.00 cents per pound, FOB car/truck (compression charges not paid). � Lots containing a light volume of color 21 and 31, leaf 2 and 3, staple 33-35, mike 37-52, strength 26-31, and uniformity 78-81 sold for 63.00 to 65.00 cents, same terms as above. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were lower. Foreign mill inquiries were light. In Arizona, cotton planting was at 42 percent and 13 percent emergence, according to the National Agricultural Statistics Service�s Arizona Crop Progress report released on April 22. In Yuma, AZ the crop progressed well under sunny, warm conditions with daily temperatures in the upper 90s and nighttime lows in the mid-60s. In New Mexico, temperatures took a dive with daytime temperatures in the 50s in some areas. No rain was recorded during the period. Despite the cooler weather, cotton planted reached 23 percent, up from 8 percent last week, according to the National Agricultural Statistics Service�s New Mexico Crop Progress report released on April 22. Temperatures in El Paso, TX were in the mid-to-upper 80s, which was beneficial in warming soils to optimal conditions for planting. No rain was recorded in the period. 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 lower. Foreign mill inquiries were light. Weather conditions were mostly sunny, with daily temperatures in the 80s and nighttime lows in the 50s. Another cold front is expected in the nearby forecast, which will cool daily temperatures into the upper 60s over the weekend. No rain was reported during the period. Planting continues as weather allows. The California Department of Water Resources announced that water allocations were 40 percent of requested supplies on April 25, up from 30 percent the previous month, due to Lake Oroville being 124 percent of average. The statewide snowpack was at 97 percent of normal for April 27, and at 83 percent of the April 1 average. The average snow water equivalent is 21.6 inches. American Pima (AP) Spot cotton trading was inactive. Supplies were heavy. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were steady. Foreign mill inquiries were light. Interest was best from China and India. According to the Foreign Agricultural Service, U.S. Export Sales report, 294,600 bales of Pima cotton were committed for export for the week ending April 18. This compares to 257,900 bales the previous year. In the San Joaquin Valley, conditions were mostly sunny, with daily temperatures in the 80s. A cold front is expected in the nearby forecast, which will once again cool temperatures. Producers continue to plant in haste as the planting deadline is in sight. In Yuma, AZ, the crop progressed well under sunny conditions. In New Mexico, cooler temperatures continued, but planting progressed where possible. In Texas, planting began even though temperatures in some areas continue to trend on the cooler side. The California Department of Water Resources announced that water allocations were 40 percent of requested supplies on April 25, up from 30 percent the previous month, due to Lake Oroville being 124 percent of average. The statewide snowpack was at 97 percent of normal for April 27, and at 83 percent of the April 1 average. The average snow water equivalent is 21.6 inches. 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 #2 FOR UPLAND COTTON April 25, 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 May 2, 2024, allowing importation of 6,902,347 kilograms (31,702 bales of 480-lbs) of upland cotton. Quota number 2 will be established as of May 2, 2024, and will apply to upland cotton purchased not later than July 30, 2024, and entered into the U.S. not later than October 28, 2024. The quota is equivalent to one week's consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period December 2023 through February 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.