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

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

East Texas

Spot cotton trading was moderate. Supplies and producer offerings were moderate.
Demand was good. Average local spot prices were lower. Producer interest in forward
contracting was moderate. Trading of CCC-loan equities was inactive. Foreign mill
inquiries were light. Interest was best from China, Taiwan, and Turkey. The COVID-19
Pandemic continued to place pressure on commodity markets, shipping logistics, and
slowed global economic recovery. Ports were congested.

Flooding subsided and soils firmed in the Upper Coast. Stand damage was under assessment,
with daytime temperature highs in the mid-80s to 90s. Stray showers brought light amounts
of additional precipitation to localized areas. The Coastal Bend was on the dry side of
Hurricane Nicholas and received up to 3 inches of rainfall. Most of the fields were harvested
ahead of landfall. Stalks were shredded. Another front brought additional rainfall to the
Rio Grande Valley late in the reporting period. The crop had been harvested from the
stalks and the rainfall was beneficial. In the Blackland Prairies, bolls were opening and
defoliation was applied on more mature fields. Harvesting was limited, but a few modules
were in the fields and on gin yards. Ginning will begin after modules accumulate.

In Kansas, the crop advanced under sunny conditions and bolls were popping open.
Defoliation had begun, and ginning was expected to begin in early October. In Oklahoma,
irrigated stands advanced and producers anticipated around 1,500 pounds of lint per acre.
Dryland stands were expected to yield around 500 pounds of lint per acre. Dryland fields
struggled under hot, dry conditions and some fields failed. Producers began applying defoliants.


West Texas

Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was
light. Average local spot prices were lower. Producer interest in forward contracting
was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light.
Interest was best from China, Taiwan, and Turkey. The COVID-19 Pandemic continued to
place pressure on commodity markets and shipping logistics. Global economic recovery was slow.

Irrigated stands advanced with temperature highs in the low 70s to 100s. Dryland stands suffered.
A cold front moved through the region on September 20, that brought below normal temperatures.
Stray showers brought light amounts of precipitation to some locations. Bolls were cracking
open. Industry is keeping watch on the weather forecast since dry, warm weather is needed for
the top bolls to fully mature. Stray showers brought light amounts of precipitation to some
locations. Harvest aids were applied on mature fields. Producers prepared for harvesting
activities to soon begin. Cover crop mixtures were planted in anticipation of the 2022-cotton
crop. A few field day events were canceled because of the pandemic.


Trading

East Texas

In Texas, a light volume containing color 21 and 31, leaf 2 and 3, staple 36, mike 43-49,
strength 28-32, and uniformity 79-83 sold for around 96.50 cents per pound, FOB warehouse
(compression charges not paid).

A heavy volume of mostly color 31, leaf 4, staple 39, mike 44-47, strength 30-33, and uniformity
81-83 sold for around 94.75 cents, same terms as above.

A heavy volume of color 31, leaf 4, staple 37 and 38, mike 40-47, strength 29-34, and uniformity
averaging 82.1 sold for around 92.50 cents, same terms as above.


West Texas

A light volume of 2020-crop cotton containing color 12 and better, leaf 4 and better, staple 37-40, mike
34-44, strength 30-33, and uniformity 79-82 sold for around 83.50 cents per pound, FOB car/truck
(compression charges not paid).

A light volume of 2020-crop cotton containing color 22 and better, leaf 3 and better, staple 34-36,
mike 32-50, strength 26-32, and uniformity 77-81 sold for around 82.00 cents, same terms as above.



LJ