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

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

East Texas

Spot cotton trading was moderate. Supplies and producer offerings of 2019-crop were
moderate and supplies of 2020-crop cotton were light. Demand was good. Average local
spot prices were higher. Trading of CCC-loan equities was active for Oklahoma cotton.
Merchants purchased a light volume of 2019-crop cotton forfeited to the CCC-Catalog on
October 13. No forward contracting or domestic mill activity was reported. Foreign
mill inquiries were light. The COVID-19 Pandemic continued to pressure the U.S. economy
and global demand for cotton.

Temperatures were in the mid-80s to mid-90s for the Coastal Bend, Upper Coast, and Rio
Grande Valley. Harvesting was virtually completed in the territory. Producers were
shredding stalks and preparing fields for other plantings. Some of the small volume gins
in the Coastal Bend and Upper Coast were nearing the end of their ginning season.
The Corpus Christ Classing Office continues to operate two 9-hour shifts. The classing
office reached 60 percent of their 2020 classing estimate. Harvesting was active in
Kansas and Oklahoma. No ginning was reported for Kansas. One Oklahoma gin began a night
shift in the period. The Abilene Classing Office classed samples a few days this week.


West Texas

Spot cotton trading was slow. Supplies of 2019-crop cotton and producer offerings were
moderate. Supplies of 2020-crop cotton was light. Demand was good. Average local spot
prices were higher. No forward contracting or domestic mill activity was reported.
Trading of CCC-loan equities was active. Merchants purchased a light volume of 2019-crop
cotton forfeited to the CCC-Catalog on October 13. Foreign mill inquiries were moderate. The
COVID-19 Pandemic continues to negatively affect cotton demand and disrupt supply chains.

Daytime high temperatures were mostly in the 90s. Harvesting and ginning gained momentum.
Some dryland fields continued to be shredded. Nearly half of the gins were beginning operations.
Gins kept up with harvesting and very few gins had modules on the gin yard. Classing office
receipts steadily increased. Early season classing results were good with color grade 11 and
leaf grade 1 as the predominate quality. Warehouses were busy receiving cotton.


Trading

A moderate volume of 2020-crop Texas cotton color 11 and 21, leaf 2 and better, staple 37
and longer, mike 37-46, strength averaging 30.5, and uniformity averaging 81.5 sold for
around 68.00 cents per pound, FOB warehouse (compression charges not paid).

A light volume of color 21 and 31, leaf 2 and better, staple 35 and 36, mike averaging 42.5,
strength averaging 31.3, and uniformity averaging 80.5 sold for around 67.00 cents, same terms as above.

A moderate volume mixed lot containing mostly color 31 and better, leaf 4 and better, staple 35-37,
mike 40-45, strength 32-34, and uniformity averaging 82.4 sold for 63.25-63.50 cents, same terms as above.

A moderate volume mixed lot containing mostly color 41 and better, leaf 4 and better, staple 34-37,
mike 28-49, strength averaging 30.8, and uniformity averaging 79.8 sold for around 60.00 cents, same terms as above.

A light volume of color 42 and 43, leaf 3 and 4, staple 35-37, mike 38-45, strength averaging 28.8,
and uniformity averaging 79.4 sold for around 53.00 cents, same terms as above.

A heavy volume of 2019 CCC-loan Oklahoma equities sold for 3.00 to 12.00 cents.

A light volume of 2019 CCC-loan Kansas equities sold for 1.00 to 5.00 cents.


West Texas

A light volume of 2020-crop cotton color 11 and 21, leaf 2 and better, staple mostly 37-39,
mike 39-42, strength averaging 32.0 sold for 71.25 to 71.50 cents per pound, FOB car/truck (compression charges not paid).

Similar lots containing staple 36-38 with mike averaging 46.0 sold for around 70.00 cents, same terms as above.

A light volume mixed lot containing mostly color 11, leaf 2, staple 35-37, mike averaging 38.9,
strength averaging 28.8, and uniformity averaging 79.1 sold for around 69.00 cents, same terms as above.

Similar lots containing color 12 with staple 32 and 33 sold for around 58.75 cents, same terms as above.

A light volume of 2019-crop cotton color mostly 22 and 33, leaf 4 and better, staple 34-37, mike
averaging 37.5, strength averaging 31.6, and uniformity averaging 79.5 sold for around 57.25 cents, same terms as above.

A light volume of 2018-crop cotton color 21 and 31, leaf mostly 3, staple 35 and 36, mike averaging 41.8,
strength averaging 30.2, and uniformity averaging 81.0 sold for around 59.00 cents, same terms as above.

A heavy volume of 2019 CCC-loan equities sold for 1.50 to 10.50 cents.