Weekly Cotton Market Review - 9/24/2021: US Southeastern Markets Regional Summary

Weekly Cotton Market Review - 9/24/2021: US Southeastern Markets Regional Summary

Spot cotton trading was inactive. Supplies and producer offerings were light.
Demand was light. Average local spot prices were lower. Trading of CCC-loan equities
was inactive. The COVID-19 Pandemic continues to negatively affect cotton demand
and disrupt supply chains. Vaccination doses were being distributed at a steady pace.

Mostly cloudy and overcast conditions dominated the weather pattern across the lower
Southeast during the week. Daytime high temperatures were mostly in the mid-to-upper 80s.
Widespread rainfall was received across the region throughout the period. Weekly
accumulated precipitation totals measured from 1 to 5 inches. Bolls continued to
mature and crack open. Boll rot was reported in some of the wettest areas. Field
activities were hampered due to wet weather. Defoliation had begun in older cotton
fields and harvesting had begun on a limited basis. In many areas, insect management
programs were winding down. However, producers continued to monitor younger fields
for stink bugs, spider mites, and white flies. A period of sunny weather was needed
to dry fields and allow defoliation to expand. According to the National Agricultural
Statistics Service's (NASS) Crop Progress report released September 20, cotton bolls
opening reached 54 percent in Georgia and 41 percent in Alabama.

Mostly overcast conditions prevailed during the period across the upper Southeast.
Daytime high temperatures in the low 90s over the weekend cooled into the upper 70s
later in the week. Widespread rainfall was received throughout the Carolinas and Virginia.
Weekly precipitation totals measured 1 to 5 inches. The crop continued to make good progress
and bolls were cracking open. Defoliation and harvesting had begun on a limited basis.
Insect pressure was light, but producers continued to monitor less mature fields for pests.
According to NASS, cotton bolls opening reached 56 percent in Virginia, 53 in North Carolina,
and 45 percent in South Carolina.


Textile Mill

Domestic mill buyers inquired for a moderate volume of color 41, leaf 4, and
staple 34 and longer for first quarter through fourth quarter 2022 delivery.
No sales were reported. Yarn demand remained good, and mills operated at capacity
as allowed by available labor. Mills continued to produce personal protective
equipment for frontline workers and consumers.

Demand through export channels was good. Agents for mills in China, India, and Japan
inquired for a moderate volume of color 31, leaf 3, and staple 36 and longer for
February through October 2022 shipment. Representatives for mills in Thailand
inquired for a moderate volume of color 41, leaf 3, and staple 37 for January
through June 2022 shipment. No sales were reported.


Trading

Even-running lot containing color 31 and 41, leaf 3 and 4, staple 36 and longer,
mike 43-49, strength 29-31, and uniformity 80-81 sold for around 87.75 cents per
pound, FOB car/truck (Rule 5, compression charges paid).