The cotton market is slightly lower after USDA published its long-delayed sales and exports information. A general summary of the report is as follows:
Net sales of 977,100 RB for 2018-19 were reported for Turkey (352,800), Pakistan (219,100), Vietnam (214,700), Indonesia (113,900), and India (73,400). There were reductions were reported for Bangladesh (57,100) and China (28,100).
For 2019-20, net sales were 161,400 bales, primarily for China (85,600), Thailand (18,900), and Malaysia (15,100). Weekly shipments were 1,431,500 bales broken out to Vietnam (419,500), Pakistan (181,600), China (130,000), Mexico (113,800), and Indonesia (109,700).
Net sales of Pima totaling 42,300 bales for 2018-19 were reported for India (15,100), Peru (6,000), Pakistan (5,800), Turkey (5,100), and Vietnam (2,800).
Exports of 110,500 RB were primarily to China (51,500 RB), India (20,100 RB), Pakistan (11,000 RB), Vietnam (9,300 RB), and Peru (4,400 RB).
A simple average for the 2018-19 sales works out to be about 162,500 bales sold each week. The market was underwhelmed by the data, as it traded lower following its release.
In other news, there were no deliveries against the March contract Friday morning. However, its delivery period lasts until March 7.
Friday is expected to be the last day for this round of U.S.-China trade talks. Obviously, all markets are hopeful for a resolution, but at this stage, there is only a hope for a resolution as formal deal has not been achieved.
Friday is the deadline for the negotiating period to end, before additional tariffs are levied on all Chinese imports coming into the U.S. However, it is thought the deadline is flexible as along as progress, however that is defined, is happening.
For Friday, support for May cotton is 72.85 cents and 71.90 cents, with resistance at 75.20 cents and 76.70 cents. Overnight estimated volume stands at 14,200 contracts traded.