Market Observation: The Spot Price Of American Cotton Fell And The Transaction Was Inactive

According to the data of the United States Department of Agriculture (USDA), as of the week of May 9 (Thursday), the spot quotation of American cotton fell by 34 points on average compared with the previous week. In the week, the average quotation of basic quality cotton in seven designated markets (color 41, leaf crumbs 4, fiber 34, micronaire values 35-36 and 43-49, strength 27.0-28.9, and uniformity 81.0-81.9) was 70.01 cents/pound, lower than 70.35 cents the previous week and 78.47 cents the same period last year. The daily average quotation is between the low of 68.81 cents on May 6 (Monday) and the high of 71.81 cents on May 8 (Wednesday). As of the week of May 9, the daily trading volume of cotton spot goods totaled 4 bales, compared with 2079 bales in the previous week and 26390 bales in the same period last year. The total volume of spot transactions so far this year is 816120 packages, compared with 633689 packages in the same period last year. ICE July cotton futures settled at 78.60 cents/pound on Thursday, 75.62 cents/pound the previous week.

Cotton spot trade is not active. Suppliers and producers offer light prices. The demand is light. The local average spot price is weak.

As of the week of May 9, most of the southeast by south regions had cloudy weather. The weather is warm and humid seasonally, and the daytime temperature is above 80 degrees Fahrenheit. The minimum temperature at night is 60-70 degrees Fahrenheit and 70-80 degrees Fahrenheit. Scattered thunderstorms brought moderate precipitation to the whole region. Later this week, strong storms hit Alabama, the Florida Panhandle, and Georgia. A tornado warning was issued, and destructive gales were reported in some areas. The total amount of accumulated precipitation varies from a small amount to about 3 inches. In areas where the soil is too wet to support equipment, field work and outdoor activities are postponed. Producers welcome rainfall, which helps to improve subsoil moisture in areas where drought conditions persist.

Most areas in the southeast and north of the week are cloudy to cloudy. The maximum temperature during the day is 80-90 degrees Fahrenheit and 90-100 degrees Fahrenheit. The minimum temperature at night is 60-70 degrees Fahrenheit.

Later in the week, the region experienced mild to moderate rainfall and strong storms. A tornado warning was issued, and destructive gales were reported in some areas. In the cotton growing area of eastern Carolina and Virginia, the accumulated weekly precipitation is 1-3 inches. Due to the wet field, the field work was interrupted, but planting was carried out before the wet weather. The producers welcomed the wet weather, which helped to alleviate the drought.

Domestic textile mill buyers enquired about the medium quantity of cotton with chroma 42 and 51, chip 5 and higher, and fiber length 36 and longer delivered from September to October. No sales report. There are no other inquiry reports. Textile mill buyers maintain a cautious tone. Some factories reduce production plans to limit the increase in yarn inventory.

The demand for export channels is moderate. Agents all over the Far East are asking if there are any discount cotton patterns. No sales report.