Weekly Cotton Market Review - 8/12/2022: South Central Markets Regional Summary

Weekly Cotton Market Review - 8/12/2022: South Central Markets Regional Summary

North Delta

Spot cotton trading was inactive. Supplies of available cotton were light. Demand
was very light. Average local spot prices were higher. Trading of CCC-loan equities
was inactive. No forward contracting was reported. Variants of the COVID-19 virus
continue to appear, causing disruptions that vary from state to state, as well as negatively
impacting international marketing channels, domestic supply chains, and the labor force overall.

A series of rain showers moving through the region provided welcome moisture. Up to 2
inches of rain were reported in some places. Daytime temperatures were in the mid-90s.
Overnight lows were in the 70s. The crop made good progressand conditions improved overall
thanks to the precipitation. According to the U.S. Drought Monitor, moderate drought persisted
in the Bootheel of Missouri and all of the cotton-producing region of western Tennessee;
yields will likely be reduced as a result. Producers are also concerned that the excessively
high temperatures during the fruiting stage may have adversely affected seed production.
Boll counts in many fields are very high, and cotton extension specialists indicated that some
shedding will be inevitable. Plant-growth regulators were being applied. Insect pressure was
moderate, and fields were treated to control plant bugs as necessary. According to the National
Agricultural Statistics Service's (NASS) Crop Progress report, released on August 8, boll-setting
advanced to 94 percent complete in Arkansas, 67 in Missouri, and surged to 82 percent in
Tennessee. NASS reported that the crop condition in Arkansas was 67 percent good to excellent,
79 pe rcent fair to good in Missouri, and 73 percent fair to good in Tennessee. Virtual and
in-person industry meetings were being planned and attended.

South Delta

Spot cotton trading was inactive. Supplies of available cotton were light. Demand was very
light. Average local spot prices were higher. Trading of CCC-loan equities was inactive.
No forward contracting was reported. Variants of the COVID-19 virus continue to appear,
causing disruptions that vary from state to state, as well as negatively impacting international
marketing channels, domestic supply chains, and the labor force overall.

Rain showers brought up to 2 inches of rain to the region. Daytime temperatures moderated to
the mid-80s to mid-90s. Overnight lows were in the 70s. Local experts in Mississippi and Louisiana
reported that fruit-set and retention were good in most areas, and that the crop made normal
progress under fair weather conditions. Boll-setting was near completion and fields were treated
with plant-growth regulators to aid in fruit retention. Insect pressure from spider mites
diminished in areas that got rain, but plant bugs remained a problem. Infestations were treated
as necessary. According to the National Agricultural Statistics Service's (NASS) Crop Progress
report, released on August 8, boll-setting advanced to 93 percent complete in Louisiana and 85
percent in Mississippi. NASS reported that the crop condition in Louisiana was 90 percent good
to excellent, and 76 percent fair to good in Mississippi. Virtual and in-person industry meetings
were being planned and attended.

Trading

North Delta
No trading activity was reported.

South Delta
No trading activity was reported.