All current season cotton contracts finished limit-up Thursday amid strong supply-demand data from USDA. Initially, the government cut beginning stocks some 200,000 bales, but then proceeded to lower the pending 2018-19 Crop by one million bales. Thus, last month’s crop number of 19.5 million fell to 18.5 million. The lone negative aspect of the report was exports were lowered 500,000 bales, from 15.5 million to 15.0 million. Still, the overall result was a reduction in U.S. Carryout.
Domestic stocks fell from the current 4.70 million bales to 4.00 million. In the world, global carry fell nearly 5.0 million bales to 77.85. The greatest reduction came in Chinese ending stocks.
Earlier in the day, USDA released its weekly sales and exports report. Net sales of 121,600 running bales for 2017-18 were up on the week and the four-week average. Top buyers included Vietnam (93,500), Turkey (7,000), China (5,600), and Indonesia (4,000).
For 2018-19, net sales were 251,400 bales. Main buyers were Vietnam (126,900), Guatemala (48,400), Mexico (25,400), and South Korea (15,900). Exports of 257,400 RB were down 38% on the previous week and 34% on 4-week average. The primary destinations were Vietnam (68,700), Turkey (49,400), Indonesia (32,200), China (23,400), and Mexico (18,400). The most interesting nuance in this data was there was zero cotton bought by China for the new season.
Volume Thursday was a brisk 27,000.