Weekly Cotton Market Review - 10/16/2020: South Central Markets Regional Summary

Weekly Cotton Market Review - 10/16/2020: 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.
A moderate volume of forward contracting was reported. The COVID-19 Pandemic continues
to negatively impact the overall global economy.

Partly cloudy skies mixed with rain showers dominated the weather pattern during the week.
Accumulated precipitation measured from 1 to 2 inches throughout the region. Variable
temperatures prevailed as a cold front moved through the territory late week. Daytime highs
were in the 60s to 80s. Overnight low temperatures were in the 40s and 60s. Field activities
were delayed in southeastern Arkansas, which received around 2 inches of rain from the remnants
of Hurricane Delta. Producers in the rest of the region experienced brief delays, if any, due
to inclement weather and defoliation, harvesting, and fall fieldwork continued normally.
Ginning continued without interruption and several more gins commenced annual pressing operations.
According to the National Agricultural Statistics Service's Crop Progress report released on
October 13, cotton harvested had reached 30 percent completed in Arkansas, 19 in Missouri, and
18 percent in Tennessee. These figures were at least one week behind the five-year average in all states.


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. A light
volume of forward contracting was reported. The COVID-19 Pandemic continues to negatively
impact economic activity around the world.

Hurricane Delta made landfall near Lake Charles, Louisiana as a Category 2 storm on Saturday,
October 10. Two people perished in Louisiana as a direct result of the storm. Local experts
reported that most of the cotton in the direct path of the storm had been harvested before
30-40 mph winds and heavy rain, which measured up to 9 inches in the worst-hit places in
Louisiana, moved through the region. A few producers reported 17 inches of accumulated
precipitation in the preceding 30 days, including moisture from two hurricanes and a tropical
depression. Other cotton-producing areas in both Louisiana and Mississippi received around
5 inches of rain. All field activities were delayed in areas that received substantial rainfall.
Flood water and soft soils prevented producers from getting into the unharvested fields; damage
assessments were on-going. No significant yield losses were reported or expected,
but the overall negative impact on color grades remains to be seen. Most large gins were
able to continue steady operations; however, a few gins that were just getting started were
delayed due to their inability to bring modules from the field. According to the National
Agricultural Statistics Service's (NASS) Crop Progress report released on October 13,
harvesting had reached 61 percent completed in Louisiana and 29 percent in Mississippi.
Harvesting was about two weeks behind the NASS five-year average in Mississippi.


Trading

North Delta

Producers booked a moderate volume of CCC-loan equities for 10.00 to 11.00 cents per pound.

South Delta

Producers booked a light volume of CCC-loan equities for 10.00 to 11.00 cents per pound.