Mp_cn206 January 10, 2025 Weekly Cotton Market Review Spot quotations averaged 27 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 64.17 cents per pound for the week ending Thursday, January 9, 2025. The weekly average was down from 64.44 cents last week and from 76.75 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 63.52 cents on Friday, January 3 to a high of 64.54 cents on Monday, January 6. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended January 9 totaled 64,464 bales. This compares to 36,762 reported last week and 42,224 bales reported the corresponding week a year ago. Total spot transactions for the season were 433,136 bales compared to 509,712 bales the corresponding week a year ago. The ICE March settlement price ended the week at 68.50 cents, compared to 68.57 cents last week. Southeastern Markets Regional Summary Spot cotton trading was slow. Supplies and producer offerings were moderate. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. Sunny weather over the weekend gave way to partly cloudy and overcast conditions later in the week across the lower Southeast. Seasonably cold daytime high temperatures were in the 40s and 50s. Nighttime lows were mostly in the 20s and 30s. Scattered rainfall brought around one inch of moisture to areas of northwest Alabama. Lesser accumulations from trace amounts to around one-quarter of an inch were recorded in portions of Georgia and the Florida Panhandle. Fieldwork continued as dry conditions allowed and producers were harvesting the last remaining fields. Ginning was winding down in Alabama and the Florida Panhandle and many gins had gone to gin days. In Georgia, backlogs of modules continued to arrive on gin yards and ginning continued. Producers, ginners, and industry members made plans to attend meetings scheduled for early 2025. Partly cloudy to sunny skies dominated the weather pattern across the upper Southeast with breezy conditions observed. Daytime temperatures were in the 40s and 50s, with nighttime lows mostly in the 20s. Scattered showers brought from trace amounts to around one inch of moisture to eastern North Carolina and Virginia. Lesser accumulations were recorded in areas of South Carolina. Fieldwork advanced where fields were firm enough to support equipment. Producers were harvesting the last remaining fields. Many gins had gone to gin days as they waited for backlogs of modules to accumulate on gin yards. Producers, ginners, and industry members made plans to attend meetings scheduled for early 2025. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for April through December delivery. No sales were reported. Mill buyers maintained a cautious undertone as they balanced production schedules with yarn orders. Demand through export channels was moderate. Agents throughout the Far East inquired for any discounted styles of cotton. Trading � A light volume of color mostly 51, leaf 2 and 3, staple mostly 34 and 35, mike 43-49, strength 27-29, and uniformity 80-82 sold for around 64.25 cents per pound, FOB car/truck (Rule 5, compression charges paid). South Central Markets Regional Summary North Delta Spot cotton CCC-loan equities was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were weak. No forward contracting was reported. Business remained very slow. Producers continued to hope for stronger market demand. Daytime high temperatures were in the 40s dropping into the 30s late week as a severe winter storm moved into the region. Nighttime low temperatures dropped into the teens. Mostly cloudy skies brought light rain showers and snow flurries as temperatures dropped. Precipitation totals measured from trace amounts to one-half of an inch. No fieldwork was reported. According to the U.S. Drought Monitor released on January 9, pockets of moderate drought persisted in cotton-growing areas of Arkansas. Pressing operations were winding down in larger gins that are expected to finish in February. South Delta Trading of spot cotton and CCC-loan equities was inactive. Supplies of available cotton was light. Demand was very light. Average local spot prices were weak. No forward contracting was reported. Producers hoped for an increase in market prices. Cloudy skies prevailed throughout the reporting period. Daytime high temperatures were in the 40s and 50s. Nighttime low temperatures were in the 20s. Light showers early in the period brought one-half of an inch of accumulated precipitation. The National Weather Service issued a winter storm watch for northern Mississippi which is expected to bring light snowfall over the next few days. According to the U.S. Drought Monitor, soil conditions were abnormally dry in parts of Louisiana and Mississippi. Fieldwork was inactive. Pressing operations were winding down for the season. 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 slow. Supplies and producer offerings were light. Demand was moderate. Average local spot prices were weak. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from Pakistan, Turkey, and Vietnam. Winter Storm Blaire brought frigid temperatures to the East Texas region, with chances for heavy snow and ice arriving late in the reporting period. Daytime high temperatures in the mid-60s plummeted into the low 40s as the cold front entered the region, with overnight temperatures dipping into the upper 20s. Producers are hoping for heavy, slow-soaking rainfall in the weeks ahead to fortify soil moisture levels and remove lingering drought concerns. Fieldwork was active and producers prepared for the planting season by applying fertilizers. Dry weather conditions persisted as a polar vortex entered South Texas, bringing cold temperatures for the Upper Coast, Coastal Bend, and Rio Grande Valley areas. Daytime high temperatures dropped from the low 80s to the upper 40s. Nighttime temperatures dropped from the upper 40s to the low 30s. Fieldwork was underway. Fertilizers were being applied in some fields in preparation for spring planting, while some producers were waiting for more precipitation before applying fertilizers. Producers are still weighing their options for planting as current low prices and droughty conditions remain significant concerns. West Texas-Kansas-Oklahoma Spot cotton trading was active. Supplies and producer offerings were heavy. Demand was good. Average local spot prices were weak. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest was best from Pakistan, Turkey, and Vietnam. In Texas, above-average temperatures were replaced by an Arctic airmass that brought colder, wintery conditions which dropped daytime high temperatures from the low 70s into the upper 20s. Overnight temperatures were in the single digits to 40s. Windchill factors were below 10 degrees for some locations. A second cold front mid-week brought light amounts of precipitation. The precipitation is welcomed but more rainfall will be needed ahead of Spring planting. Fieldwork was light, and some fields were plowed to control weeds. Stands remained to be harvested in the Rolling Plains. Gins continued processing seed cotton that was on the gin yard. Many ginning plants had pressed the final bale of the season. Meetings were attended. In Kansas, daytime temperatures were in the teens to low 40s, and overnight lows were zero to 30s. The cotton-growing areas received 6 to 8 inches of snow, in addition to ice and rain. Fieldwork and hauling modules out of the fields was stalled. Ginning shut down for two to three days from the affects of inclement weather. In Oklahoma, daytime high temperatures were in the low 30s to upper 60s. Overnight temperatures were in the teens to 30s. Snow is in the nearby forecast. A cold front brought fieldwork to a standstill. Ginning plants continued processing seed cotton, but closed for a short period when the equipment froze from the frigid temperatures. Trading East Texas-South Texas � A light volume of color 21, 22, 31, and 41, leaf 2 and 3, staple 36, mike 38-47, strength 28-33, and uniformity 79-82 traded for around 65.50 cents per pound, FOB warehouse, (compression charges not paid). � A light volume of mostly color 31, leaf 3-5, staple 37 and 38, mike averaging 42.3, strength averaging 34.1, and uniformity averaging 82.2 sold for around 65.25 cents, same terms as above. West Texas, Kansas & Oklahoma � In Texas, lots containing a heavy volume of color 41 and better, leaf 5 and better, staple 36, mike 31-51, strength 27-35, and uniformity 77-83 sold for 66.50 to 67.50 cents per pound, FOB car/truck (compression charges not paid). � A heavy volume of lots containing mostly color 42 and better, leaf 4 and better, staple 33-35, mike 37-50, strength 26-32, and uniformity 77-81 sold for 61.25 to 62.00 cents, same terms as above. � A moderate volume of CCC-loan equities traded for 9.50 cents. � In Kansas, a light volume of color 22 and better, leaf 2 and 3, staple 36, mike 41-46, strength averaging 31.2, and uniformity averaging 80.4 sold for 61.50 to 63.00 cents, same terms as above. � Lots containing a moderate volume of color 41-53, leaf 4-6, staple 34-37, mike 43-46, strength 31-35, uniformity 79-82, and 50 percent extraneous matter sold for 54.00 to 56.25 cents, same terms as above. � In Oklahoma, mixed lots containing a heavy volume of color 32 and better, leaf 3 and better, staple 34-36, mike 42-50, strength 28-35, and uniformity 79-81 traded for 63.75 to 66.25 cents, same terms as above. � Lots containing a moderate volume of color 31-52, leaf 2 and 3, staple 34-36, mike 40-46, strength 28-32, and uniformity 79-82 sold for 60.00 to 62.50 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. Producer interest in forward contracting was light. Average local spot prices were weak. Foreign mill inquiries were moderate. In central Arizona, weather conditions were partly cloudy and windy. Wind gust of up to 30 miles per hour caused widespread blowing dust and air quality alerts were issued. Daily temperatures were in the upper 60s to low 70s, with nightly lows in the 40s. No rain was recorded during the period. In Safford, sunny skies with daily temperatures in the upper 60s to low 70s were prevalent early in the period. Late week, gusty winds ushered in a cold front that dropped daily temperatures into the 40s and 50s. Nighttime lows were in the 20s and 30s. Freeze warnings and wind advisories were issued. In New Mexico and El Paso, TX, a winter storm pushed through late in the period bringing gusty winds and a chance of rain and snow. Daily temperatures dropped from the 70s to the 30s with nighttime lows in the 20s and 30s. Throughout the DSW, ginning continued and producers made plans for spring planting. The Visalia Classing Office Quality report for the 2024-crop can be viewed here: Visalia Classing Office Quality Report. 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 weak. Foreign mill inquiries were light. Weather conditions were sunny to partly cloudy. Daily temperatures were in the upper 50s to lower 60s, with nighttime lows in the 30s and 40s. Passing showers brought approximately one-tenth of an inch of rain. The California Department of Water Resources conducted the first snow survey of the season and the statewide snowpack was near average. As of January 6, the average snow water equivalent was almost 11 percent, and at 41 percent of the April 1 average. Ginning continued. The Visalia Classing Office Quality report for the 2024-crop can be viewed here: Visalia Classing Office Quality Report American Pima (AP) Spot cotton trading was inactive. Supplies were moderate. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were steady. Foreign mill inquiries were light. Daily temperatures in the San Joaquin Valley were in the 50s and 60s, with nightly lows in the 30s and 40s. Stray showers brought around one-tenth of an inch of precipitation to the area. The California Department of Water Resources conducted the first snow survey of the season and the statewide snowpack was near average. As of January 6, the average snow water equivalent was almost 11 percent, and at 41 percent of the April 1 average. Ginning slowed as several roller gins finished for the season. Temperatures were mild in central Arizona with daily highs in the 60s, but a cold front late in the period dropped temperatures into the 30s and 40s in higher elevations. No rain was recorded. In New Mexico and El Paso, Tx, a winter storm brought gusty winds and a chance of rain and snow. Daily temperatures dropped into the 30s with nightly lows in the 20s. The Visalia Classing Office Quality report for the 2024-crop can be viewed here: Visalia Classing Office Quality Report. Trading Desert Southwest � No trading activity was reported. San Joaquin Valley � No trading activity was reported. American Pima � No trading activity was reported. Supply and Demand For the 2024/25 U.S. cotton balance sheet, production and ending stocks are increased while exports are reduced. Domestic use and beginning stocks are unchanged. The U.S. all-cotton production is revised upward 159,000 bales to 14.4 million as the national cotton yield estimate is raised 44 pounds to 836 pounds per harvested acre, reflecting a larger crop and lower harvested area. Most of the reduction in harvested area WASDE-656-5 occurred in the Southwest while yields in numerous Southeast, Delta, and Southwest States are expected to be higher. Projected exports are lowered 300,000 bales to 11.0 million. Ending stocks are raised to 4.8 million bales for a stocks-to-use ratio of about 38 percent. The 2024/25 season average upland farm price is reduced to 65 cents per pound. Crop Production All cotton production is estimated at 14.4 million 480-pound bales, up 19 percent from 2023. The United States yield is estimated at 836 pounds per acre, down 63 pounds from last year. Harvested area, at 8.27 million acres, is up 28 percent from last year.