Cotton traded all over unchanged as this Friday morning’s sales and exports were deemed supportive. That report is as follows: Net sales of 162,800 bales for 2019/2020 were primarily for Vietnam (42,100), Pakistan (22,400), Mexico (16,400), South Korea (15,000), and Indonesia (12,300). there were reductions for China (4,600) and Portugal (300). For 2020/2021, net sales were 198,200 RB. Top buyers were Mexico (180,000) and Japan (18,200).
Exports of 230,000 RB were primarily to Vietnam (61,800), Indonesia (29,300), Turkey (23,600), Bangladesh (22,100), and India (16,000). Net sales of Pima totaling 900 RB resulting in increases for India (2,100), were partially offset by reductions for China (1,300). Exports of 8,300 RB were primarily to El Salvador (2,400), India (2,000), Vietnam (1,000), Pakistan (900), and Turkey (700). Last week’s current crop sales were 146,000 bales.
The market is already anticipating next week’s supply-demand report on September 12. USDA is expected to lower the scope and size of the 2019 crop. Of late weather conditions have been pulling against the development of the crop, although the most recent crop condition report did show an uptick in the good/excellent levels.
The sharp drop in the U.S. dollar and a recovery in the energy markets have certainly helped the feelings of the market, although fears of a recession are being touted by many financial analysts.
For today, support for December cotton is 58.12 cents and 57.55 cents, with resistance at 60.05 cents and 60.25 cents. Overnight estimated volume stands at 6,887 contracts.
Keith Brown can be reached at email@example.com or by calling (229) 890-7780.