Weekly Cotton Market Review - 9/24/2021: South Central Markets Regional Summary

Weekly Cotton Market Review - 9/24/2021: 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 lower. Trading of CCC-loan equities was inactive.
No forward contracting was reported. The COVID-19 Pandemic continues to negatively
impact the overall global economy and supply chains. The new variants of the
COVID-19 virus are of concern nationwide; vaccinations proceeded at a steady pace.

Overcast skies with scattered thundershowers prevailed during the week. Around 1
inch of accumulated precipitation was reported in most areas. High temperatures
were mostly in the low 80s. Overnight lows in the low 70s early in the period
plummeted into the 50s as a cold front moved through the region mid-week. Local
experts reported that defoliation, which was just getting underway, was delayed as
a result. Defoliation is expected to gain momentum quickly once soft soil firms
enough to support equipment. Harvesting and ginning were not expected to begin
until around the first week of October. According to the National Agricultural
Statistics Service's (NASS) Crop Progress report released on September 20, cotton
bolls opening advanced rapidly to 9 percent in Arkansas, 55 in Missouri, and 20
percent in Tennessee. NASS reported that the condition of the majority of the
crop in Arkansas was good to excellent, while it was rated fair to good in Missouri and Tennessee.


South Delta

Spot cotton trading was inactive. Supplies of available cotton and demand were
light. Average local spot prices were lower. Trading of CCC-loan equities was
inactive. No forward contracting was reported. The COVID-19 Pandemic continues
to negatively impact the overall global economy. Variants of the COVID-19 virus
are of great concern locally and nationally. Vaccinations continue at a steady
rate regionally.

Mostly clear to partly cloudy climatic conditions dominated the weather pattern
during the week. Late afternoon thundershowers brought accumulated moisture of up
to 2 inches to some areas. Daytime high temperatures were in the 80s. Overnight
temperatures in the 70s dropped to the 50s due to a cold weather system that moved
into the region. A few fields were defoliated, but the inclement weather discouraged
producers from applying harvest aids. Widespread defoliation was not expected to get
underway for at least a week, but local experts stated that bolls were opening steadily,
and defoliation should proceed swiftly. Ginning was not expected to get underway until
early October. Producers continued prepping equipment as more fields reached cutout.
According to the National Agricultural Statistics Service's (NASS) Crop Progress report
released on September 20, cotton bolls opening had advanced normally to 85 percent in
Louisiana and 66 percent in Mississippi. NASS reported that the condition of the majority
of the crop in Louisiana and Mississippi was fair to good.


Trading

North Delta

No trading activity was reported.


South Delta

No trading activity was reported.



LJ