U.S.: Insufficient demand, weaker prices exacerbate crisis in cotton-producing regions

From November 25 to December 1, 2022, the average spot price of standard grades in the seven major markets in the United States was 80.81 cents/lb, down 0.37 cents/lb from the previous week and 23.05 cents/lb from the same period last year. During the week, 10,715 bales were traded in the seven major domestic spot markets in the United States, and the cumulative turnover in 2022/23 was 74,795 bales.

U.S. domestic upland cotton spot prices are weaker, foreign inquiries are light in Texas, demand is best in South Korea, Pakistan and Turkey, holiday shipments take up too many trucks and containers, causing cotton shipments to be hindered, Western Desert and San Joaquin regions Foreign inquiries were light, and ICE futures rebounded slightly that week. However, continued insufficient demand, inflation and interest rate hikes led to a reduction in consumer spending, and the price of Pima cotton was stable. Foreign inquiries were light, and insufficient demand continued to bring pressure on prices.

This week, domestic textile mills in the United States did not inquire about prices. Due to insufficient demand for end products, some factories delayed raw cotton shipments or lowered the operating rate, and textile mills were still cautious about purchasing. The export demand for US cotton is flat or general. Bangladesh has purchased grade 3 cotton shipped from December to January. Taiwan, China has inquiries for grade 4 cotton and grade 5 cotton shipped from June to October next year. South Korea has made inquiries about the recent shipments , All kinds of American cotton certified by Trust Protocol have inquiries.

Heavy rainfall in the southern part of the Southeast US, with rainfall ranging from 25-75 mm, and harvesting and fielding are basically complete. Intermittent rainfall in the northern part of the Southeast region, rainfall in the range of 25-38 mm, and harvesting and field work have slowed down; the northern part of the Delta region has slowed down. There was a storm in the middle of the week, and the harvest was 95-98% complete. The processing plant continued to operate at full capacity. The yield and quality of new cotton were very good. There was heavy rain in the south of the delta area, and the rainfall in some areas was nearly 100mm. The harvest of new cotton has ended, and processing continues advance.

Thunderstorms continued for several days in southern Texas, with cumulative rainfall exceeding 100 mm. Cotton farmers are looking forward to more abundant rainfall in winter so that they can replant better-priced sorghum next year. Harvest in Kansas is almost complete. Slow, 85% of the harvest has been completed. After the rain and snow in western Texas, the weather was dry and cold. The weather returned to sunny and warm later in the week, and the harvesting work accelerated.

The weather in the western desert area is sunny and warm, harvesting and processing continue, and the quality of new cotton is good everywhere. There is rain and snow in the San Joaquin area, and the snow in the mountains continues to increase, and the quality of the new cotton is good; the rain and snow in the Pima cotton area lead to interruptions in harvesting and processing, but it is beneficial to the sowing of northern California in the coming year, and the harvest in Arizona is basically over. Processing continues to advance steadily.