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Market Update

July 22, 2022

By July 22, 2022No Comments

Weekly Cotton Market Review

Provided by the U.S. Department of Agriculture – Agricultural Marketing Service

Spot quotations were 134 points higher 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 104.04 cents per pound for the week ending Thursday, July 21, 2022. The weekly average was up from 102.70 cents last week and from 85.10 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 101.05 cents Friday, July 15 to a high of 105.06 cents Monday, July 18. There were no spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 21. This compares to 880 reported last week and 872 spot transactions reported the corresponding week a year ago. Total spot transactions for the season are the same as last week at 1,624,146 bales compared to 1,386,548 bales the corresponding week a year ago. The ICE October settlement price ended the week at 99.60 cents, compared to 91.41 cents last week.

WEST TEXAS

Spot cotton trading was inactive. Supplies and producer offerings were light. Demand was light. Average local spot prices were higher. Producer interest in forward contracting was light. Trading of CCC-loan equities was inactive. Foreign mill inquiries were light. Logistics continued to be negatively impacted by the COVID-19 Pandemic. According to the Centers for Disease Control and Prevention, the weekly community level was high for Lubbock County. The heat wave continued with daytime high temperatures in the low to upper 100s. Abilene and surrounding areas received around one-half inch of rain, but most areas missed any chance at significant precipitation. Triple digit temperatures and parched soils deteriorated stand viability, including some irrigated stands. Most of the dryland acres were failed on the High Plains and the adjusters were making decisions on fields in the Rolling Plains. According to industry reports, some producers took their cotton cover crop, which was wheat, to harvest because of good market prices. Remaining cotton fields are good, but some of the stands are thin. The crop is setting squares and a few fields had begun to bloom. Producers were busy irrigating, fertilizing, and applying plant growth regulators. Lots of fields were plowed.

No trading activity was reported.