According to the latest report from the U.S. Department of Agriculture (USDA), a total of 98,000 tons of cotton were graded during the week ending January 6. Of this, 94,000 tons were upland cotton, with 72.5% meeting the ICE futures trading standards (SLM 1-1/16 or higher). Additionally, 4,000 tons of Pima cotton were graded.
As of January 6, Japan had completed a cumulative inspection of 3.758 million tons of cotton, including 3.974 million tons of upland cotton, of which 65.3% met ICE requirements. Pima cotton inspections totaled 84,000 tons. In the current week, only Texas exceeded the 10,000-ton mark, with 67,000 tons inspected. Year-to-date, Texas has accounted for 1.635 million tons, making up 43.5% of the national total.
**Spot Prices**
From December 31, 2010, to January 6, 2011, the average spot price across seven major U.S. domestic markets stood at 135.77 cents per pound, a decrease of 1.71 cents from the previous week but an increase of 68.01 cents compared to the same period last year. The ICE March contract closed at 141.22 cents per pound, down 1.62 cents from the prior week. During the week, a total of 20,330 bales were sold in the seven major domestic markets. On January 7–13, 2011, the AWP price was 154.87 cents, while the LDP subsidy remained at 0.00 cents.
**Market Transactions**
The U.S. domestic spot market saw normal supply and demand, with spot prices declining slightly. In the Southwest region, foreign inquiry prices dropped significantly. In the Western Desert and San Joaquin regions, inquiries were limited, with only current and next-year Pima cotton showing stable demand. Prices remained firm, even rising in some cases.
**Weather and Harvest Progress**
Throughout the week, the Southeastern U.S. experienced rain and snow, helping to ease drought conditions. After New Year’s Day, the weather turned dry, and ginning operations are expected to wrap up within a few weeks. The Delta region also saw heavy rainfall, improving soil moisture. In Eastern Texas, most ginning is nearing completion, with work expected to finish within two weeks. Southern Texas remains dry, and ginning and inspection activities in the east are concluding. Some areas have a better chance of expanding planting in spring, while western Texas faced heavy rains. Cotton farmers are preparing for spring sowing, and ginning and inspection activities are entering their final stages. The Western Desert experienced mild weather, allowing ongoing ginning and inspection. In the San Joaquin Valley, sawing and ginning have concluded, and roller ginning continues. Recent heavy rains in the area have been favorable for spring planting. The California Water Department reported that snowfall has reached twice the annual average, which is very positive for upcoming planting seasons. In the Pima-growing region, heavy rainfall has improved sowing prospects.
**Domestic and International Textile Demand**
During the week, U.S. textile mills placed inquiries for spot shipments of grade 4 cotton, though purchasing activity remained cautious. Discussions between traders and mills did not result in contracts for the second quarter, and most factories continued operating at full capacity. U.S. cotton export inquiries remain strong, with Pakistan showing interest in 4th and 5th grade cotton for delivery between May and July. The Taiwan region also inquired about 4th and 5th grade cotton, with loading periods set for 2–3 months.
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