Weekly Cotton Market Review, narrative

Mp_cn206 Weekly Cotton Market Review May 23, 2025 Spot quotations averaged 40 points lower than the previous week, according to the USDA, Agricultural Marketing Service�s Cotton and Tobacco Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0 - 28.9, and uniformity 81.0 - 81.9) in the seven designated markets averaged 62.81 cents per pound for the week ending Thursday, May 22, 2025. The weekly average was down from 63.21 cents last week and from 70.27 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 62.03 cents on Friday, May 16 to a high of 63.26 cents on Tuesday, May 20. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended May 22 totaled 5,431 bales. This compares to 4,612 reported last week and 1,602 bales reported the corresponding week a year ago. Total spot transactions for the season were 957,062 bales compared to 818,809 bales the corresponding week a year ago. The ICE July settlement price ended the week at 65.63 cents, compared to 65.43 cents last week. Southeastern Markets Regional Summary Spot cotton trading was inactive. Supplies and offerings were light. Demand was moderate. Average local spot prices were weak. Trading of CCC-loan equities was inactive. No interest in forward contracting was reported. Cloudy and overcast conditions over the weekend gave way to sunny skies later in the week across the lower Southeast. Daytime high temperatures were in the 80s and 90s. Nighttime lows were in the 60s and 70s. Portions of north Alabama and north Georgia received widespread rainfall early in the period. Precipitation totals measured from one to two inches, with heavier accumulations observed in localized areas. The moisture improved subsoil measurements and streamflow conditions. Planting and fieldwork advanced in fields where soils were firm enough to support equipment. Mostly sunny conditions prevailed across the upper Southeast during the period. Daytime high temperatures were in the 80s and 90s. Nighttime lows were in the 60s and 70s. Scattered shower activity brought moisture to areas of eastern North Carolina and Virginia over the weekend. The moisture helped alleviate dry conditions in portions of the areas. Planting activity and fieldwork advanced as dry conditions allowed. Textile Mill Domestic mill buyers inquired for a moderate volume of color 41, leaf 4 and better, and staple 35 and longer for January through March 2026 delivery. Mill buyers also inquired for a moderate volume of color 41, leaf 4, and staple 34 and longer for June through October 2026 delivery. No sales were reported. The undertone from mill buyers remained cautious. Raw cotton demand was balanced with yarn orders. Demand through export channels was moderate. Indonesian mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 35 for prompt shipment. Vietnamese mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 37 for June shipment. No sales were reported. Trading � A heavy volume of mostly color 31, leaf 2 and 3, staple 36, mike averaging 46.3, strength averaging 29.9, and uniformity averaging 81.7 traded for around 72.00 cents per pound, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage). South Central Markets Regional Summary North Delta Spot cotton trading was inactive. Trading of CCC-loan equities was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were weak. There was no interest in forward contracting. Mostly cloudy skies with strong thunderstorms continued to dominate the weather pattern during the reporting period. Heavy hail and strong winds pushed through the territory with winds up to 25 miles per hour (mph). Accumulated precipitation totals ranged from trace amounts to around three inches of moisture. Excessive rainfall resulted in flooding in some low-lying fields. Daytime highs were in the 80s. Nighttime low temperatures were in the 50s to 70s. Disastrous tornados ripped through the West Tennessee and the New Madrid County area. Producers worked vigorously between storms to complete fieldwork. Planting is expected to resume in areas where fields are firm enough to support equipment after a light period of sunshine. Replanting is expecting in areas that were flooded. According to local experts, in the Bootheel, 75 percent of the cotton has already been planted. In Arkansas, planting is well underway and cotton has begun to emerge. According to the National Agricultural Statistics Service�s Crop Progress report released on May 19, planting was at 60 percent in Arkansas, 66 in Missouri, and 49 percent in Tennessee. South Delta Trading of spot cotton and CCC-loan equities was inactive. Supplies of available cotton were light. Demand was very light. Average local spot prices were weak. There was no interest in forward contracting. Partly cloudy skies with scattered thunderstorms prevailed throughout the reporting period. More than five inches of precipitation was reported. Frequent rainfall caused rivers to flood. In Mississippi, tornados ripped through cotton growing areas early in the period. Storms subsided and sunshine returned late in the period, warming daytime highs into the 80s and 90s. High wind gusts up to 25 mph cooled nighttime low temperatures into the 60s and 70s. According to the U.S. Drought Monitor report, there were not many improvements made to drought conditions due to rain falling over areas already free of drought and abnormal dryness. However, the conditions prevented existing drought from expanding or intensifying in locales where topsoil lacked adequate moisture. The uncertainty of final acreage numbers were on the rise as planting obstructions slowed progress. Producers are hoping for an extended period of dry, sunny weather to resume planting activities. According to the National Agricultural Statistics Service�s Crop Progress report released on May 19, cotton planting was at 58 percent in Louisiana and 31 percent in Mississippi. Trading North Delta � No trading activity was reported. South Delta � No trading activity was reported. Southwestern Markets Regional Summary East Texas-South Texas Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were weaker. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Interest was best from Korea, Pakistan, and Vietnam. Mostly sunny and partly cloudy conditions were observed in East Texas this week. Daytime high temperatures were in the upper 80s to the mid-90s, with nighttime lows in the low-to-mid 70s. Spotty showers produced trace amounts of rainfall in some locales. Planting continued in Brazos River Bottoms and the Blackland Prairies ahead of the May 31 final planting date deadline for crop insurance. Stand progression ranged from emergence to squaring. In South Texas, sunny and windy weather continued. Daytime high temperatures were in the upper 80s and the mid-90s. Nighttime low temperatures hovered in the upper 70s throughout the period. No rainfall was reported. Warm temperatures created optimal conditions for plant development, but all of the South Texas regionwould benefit from rainfall to revitalize soils and meet critical plant developmental water demands. Local experts reported the presence of fleahoppers in fields at or above threshold levels in the lower Rio Grande Valley (RGV). Treatments were applied to minimize pests in the RGV, Coastal Bend, and areas of the Upper Coast. West Texas-Kansas-Oklahoma Spot cotton trading was active. Supplies and producer offerings were light. Demand was light. Average local spot prices were weaker. Producer interest in forward contracting was light. Trading of CCC-loan equities was slow. Foreign mill inquiries were light. Interest was best from Korea, Pakistan, and Vietnam. In Texas, sunshine and windy conditions persisted during the period, with daytime temperatures in the mid-80s to the mid-90s and overnight lows in the mid-50s to the upper 60s. No rainfall was reported, but several chances for precipitation remain in the forecast for the coming week and would be timely and beneficial to stand development and soil moisture as sowing continues. Planting and fieldwork activity was underway. In areas of the Panhandle, producers worked late into the night to finish planting. Stands were popping up in the Northern Low Plains. Pivot irrigation was applied in some counties in the region. In Kansas, dry and windy weather continued. Daytime temperatures were in the mid-70s to mid-80s, with overnight lows in the low 50s and 60s. Planting was virtually complete in areas of South-Central Kansas, and some fields were emerging. Rainfall is needed to facilitate plant development and push seedling emergence. In Oklahoma, sunshine and windy conditions with isolated thunderstorms late in the week were prevalent. Daytime temperatures in the low 80s to the mid-90s, and overnight lows in the 50s to upper 60s. Planting operations continued under favorable conditions. Trading East Texas/South Texas � A lot containing a light volume color 31, leaf 3 and 4, staple 34 and 35, mike averaging 45.4, strength averaging 30.1, and uniformity averaging 80.2 traded for around 60.75 cents, FOB warehouse (compression charges not paid). West Texas, Kansas & Oklahoma � In Texas, a lot containing a light volume of color 21 and 31, leaf 3 and better, staple 33-37, mike 35-50, strength 26-34, and uniformity 77-82 sold for around 61.00 cents per pound, FOB car/truck (compression charges not paid). � A lot containing a light volume of color 32, leaf 2 and 3, staple 33, mike 43-45, strength 27-30, and uniformity 77-80 traded for around 57.50 cents, same terms as above. � A light volume of CCC-loan equities traded for around 6 cents per pound. � In Kansas, a mixed lot containing a moderate volume of color 21, leaf 3, staple 34 and 35, mike averaging 42.8, strength averaging 32.2, and uniformity averaging 80.2 traded for around 61.25 cents, same terms as above. � In Oklahoma, a heavy volume of color 11 and 21, leaf 3 and better, staple 36-38, mike 38-47, strength 30-34, and uniformity 80-83 sold for around 67.75 cents, same terms as above. Western Markets Regional Summary Desert Southwest (DSW) Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Producer interest in forward contracting was light. Average local prices were weak. No forward contracting or domestic mill activity was reported. Weather conditions in Arizona were mostly sunny. Daytime highs were in the 90s to low 105s. Nighttime lows were in the 50s to 70s. Rain is needed to restore low water levels in rivers. According to the National Agricultural Statistics Service�s (NASS) Crop Progress report released on May 19, cotton planted was ahead of the five-year average at 96 percent in Arizona. In Yuma, the crop continued to progress. Cotton conditions remained the same at mostly good to excellent, with only 2 percent of the crop rated fair. In El Paso, TX and New Mexico, daytime highs dipped into the 80s before rebounding into the triple digits. Nighttime lows cooled into the 50s to 60s. Mostly sunny skies characterized the weather pattern during the reporting period. In El Paso, TX cotton is still being planted. NASS reported 7.0 days suitable for fieldwork in New Mexico, compared to 6.6 days last year. In Texas, there were 6.2 days suitable for fieldwork compared to 4.4 days the previous year. San Joaquin Valley (SJV) Spot cotton trading was inactive. Supplies and demand were light. No forward contracting or domestic mill activity was reported. Average local prices were weak. Foreign mill inquiries were light. In the SJV, sunny skies dominated weather pattern during the reporting period. Daytime highs were in the 80s and 90s. Nighttime lows were in the 50s and 60s. A Red Flag Warning continued with winds up to 35 miles per hour (mph) that increased the potential for fire outbreaks. No rainfall was recorded during the period. Field activity continued to progress. Local experts monitored insect populations in fields where needed. Cotton continued to emerge. Cotton planted improved by 5 percent to 80 percent in California, compared to 75 percent last week, according to the National Agricultural Statistics Service�s (NASS) California Crop Progress report released on May 19. NASS reported 7.0 days suitable for fieldwork, which is the exact same as the five-year average. American Pima (AP) Spot cotton trading was inactive. Supplies were moderate. Demand was light. No forward contracting or domestic mill activity was reported. Average local spot prices were steady. Foreign mill inquiries were light. In the San Joaquin Valley (SJV), mostly sunny skies characterized weather conditions during the reporting period. Daytime highs were in the 80s and 90s. Nighttime lows were in the 50s and 60s. No precipitation was reported during the period. In the Desert Southwest, Daytime highs were in the 90s to low 105s. Nighttime lows were in the 50s to 70s. Many of the fields have already been planted. The Pima crop is progressing well. In Arizona, cotton planted was 96 percent completed with 69 percent emerged, and in New Mexico 60 percent planted with 23 percent emerged, according to the National Agricultural Statistics Service�s Crop Progress report released on May 19. According to the California Cotton Ginners Association, over the past month, the Association has estimated approximately 93,600 acres of Pima cotton statewide for the 2025 cotton season. The total estimated cotton acreage for California is 116,290 acres. All surveys and estimations are accumulated from various gins in California. The California Cotton Ginners and Growers Association's 2025 Annual Supima Meeting was held on Wednesday, May 21 at the International Agri-Center in Tulare, CA. Trading Desert Southwest � A light volume of CCC- loan equities traded for around 3 cents per pound. San Joaquin Valley � No trading activity was reported. American Pima � No trading activity was reported.