The cotton market is lower, somewhat disappointed that no definitive progress emerged from this week’s U.S.-China trade talks in Beijing. However, the two sides did agree to gather again next week in Washington to continue their negotiations. Apparently, even with the March 1 deadline fast approaching, the two nations seem to be far apart on such key issues as intellectual property rights.
In other news, Thursday the House Appropriations Committee removed a provision which would have provided some three billion dollars of disaster relief from Hurricane Michael to southeastern producers. We are not sure how that item was struck. Reportedly, the bill went to President Trump’s desk for signing in that form. Currently, industry leaders are scrambling to seek other means to gain funds for those most devastated areas.
Weekly sales and exports were released yesterday, and even though we were absent we wanted to provide them to subscribers just for the record. Net sales of 299,800 bales for 2018/2019 were up 31 percent weekly, and 52 percent on the 4-week average. Top buyers included Pakistan (130,300), India (50,000), Turkey (37,100), Vietnam (28,000), and Malaysia (15,000). Net reductions were reported for South Korea (2,700) and Japan (1,800).
For 2019/2020, net sales were 19,400 bales. Top buyers were Bangladesh (15,000) and China (4,400). Weekly exports totaled 181,100 bales. That number was down 5 percent weekly, but up 3 percent on the 4-week average. Shipments were primarily to Vietnam (46,900), Pakistan (24,100), China (21,200), Indonesia (21,100), and Mexico (18,200). Net sales of Pima totaled 6,000 bales for the 2018/2019 season.
Last week’s weekly export-sales report was for the week ending January 3rd. They showed cumulative sales stand at 78% of USDA’s projection versus the five-year average of 68.9%
ICE Futures will be closed Monday for the President’s Day holiday. We will return with cotton commentary on Tuesday. The top concern next week continues to be the U.S.-China trade negotiations.
For Friday, close-in support for March cotton is 69.53 cents with resistance at 70.93 cents. Overnight estimated volume is 5,100 contracts traded.