Weekly Cotton Market Review - 8/12/2022: US Southeastern Markets Regional Summary

Weekly Cotton Market Review - 8/12/2022: US Southeastern Markets Regional Summary

Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was
moderate. Average local spot prices were higher. Trading of CCC-loan equities was inactive.
The COVID-19 Pandemic continues to disrupt labor availability and logistics, but cities and
smaller locales were easing COVID restrictions.

Cloudy to overcast conditions prevailed across the lower Southeast during the week. Daytime high
temperatures were mostly in the 80s to low 90s. Widespread scattered thunderstorms brought light
to moderate precipitation to areas throughout Alabama, the Florida Panhandle, and Georgia during
the period. Weekly accumulated rainfall totals measured from trace amounts to around one and
one-half inches of moisture with the heavier totals recorded in north Alabama and north Georgia.
The crop progressed at a satisfactory pace. Boll-setting advanced and mature bolls were cracking
open on the bottom of plants in the earliest-planted fields. Disease pressure had increased due
to wet and humid conditions in recent weeks. Producers would welcome a period of clear and dry
conditions to apply fungicides and growth regulators. Producers also scouted fields and applied
insecticides as needed. According to the National Agricultural Statistics Service's (NASS) Crop
Progress report released August 8, cotton squaring neared completion and boll-setting advanced
to 89 percent in Alabama and 76 percent in Georgia.

Partly cloudy to overcast conditions dominated the weather pattern across the upper Southeast
during the week. Daytime high temperatures were mostly in the low-to-mid 90s. Scattered showers
and thunderstorms brought rainfall to portions of central South Carolina and eastern North Carolina
and Virginia during the period. Weekly accumulated precipitation totals measured from trace amounts
to around one and one-quarter inch of moisture. Squaring neared completion and boll-setting
advanced at a good pace. Mature bolls were cracking open on the bottom of plants in the
earliest-planted fields. Disease pressure had increased due to hot and humid conditions in recent
weeks. Producers applied fungicides as dry conditions allowed. According to NASS, boll-setting
advanced to 86 percent in Virginia, 81 in South Carolina, and 65 percent in North Carolina.

Textile Mill

Domestic mill buyers inquired for a moderate volume of 2022-crop cotton, color 41, leaf 4, and
staple 34 and longer for first quarter through fourth quarter 2023 delivery. No sales were
reported. Yarn demand remained good, but 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 throughout the Far East inquired for any discounted
styles of cotton.

Trading

No trading activity was reported.