Weekly Cotton Market Review

Average spot quotations were 133 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 57.56 cents per pound for the week ending Thursday, July 2, 2020.

The weekly average was up from 56.23 last week, but down from 60.50 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 55.99 cents Monday, June 29 to a high of 59.41 cents Thursday, July 2.

Spot transactions reported in the Daily Spot Cotton Quotations for the week ended July 2 totaled 14,318 bales. This compares to 4,549 reported last week and 8,371 spot transactions reported the corresponding week a year ago.

Total spot transactions for the season were 1,560,238 bales compared to 1,260,426 bales the corresponding week a year ago. The ICE Oct settlement price ended the week at 63.55 cents, compared to 60.39 cents last week.

USDA ANNOUNCES SPECIAL IMPORT QUOTA #11 FOR UPLAND COTTON July 2, 2020

The Department of Agriculture’s Commodity Credit Corporation announced a special import quota for upland cotton that permits importation of a quantity of upland cotton equal to one week’s domestic mill use. The quota will be established on July 9, 2020, allowing importation of 3,892,413 kilograms (17,878 bales of 480-lbs) of upland cotton.

Quota number 11 will be established as of July 9, 2020 and will apply to upland cotton purchased not later than October 6, 2020 and entered into the U.S. not later than January 4, 2021. The quota is equivalent to one week’s consumption of cotton by domestic mills at the seasonally-adjusted average rate for the period March 2020 through May 2020, the most recent three months for which data are available.

Future quotas, in addition to the quantity announced, will be established if price conditions warrant.