The cotton market is higher Friday morning as tropical disturbance 16 is rushing towards the Southeastern cotton fields. While not a major storm, it still is packing winds of 50-plus miles per hour and has the potential to unleash copious amounts of rain on cotton fields from Georgia up to possibly Virginia.
An earlier passing cold front already brought rains, which halted current harvesting efforts in southern Georgia. This event could delay gathering all the more.
World stock markets are lower overnight, pressured by the news that China’s third quarter gross domestic product grew by 6.0% on an annual basis. Although that number might sound large, for China it is slowest growth pace in at some 27 years. The forecast was for 6.1%.
No doubt the off-take is a result of the U.S.-Chinese tariff war. However, China’s industrial production for September was up 5.8%, year-on-year, versus expectations for a rise of 4.9%.
USDA released its weekly sales and exports data today. The following is a reduced summary: Net sales of 206,500 RB for 2019/2020 were up 9% weekly, and 36% on the four-week average. Increases primarily for Vietnam (108,800), Pakistan (64,800), Bangladesh (13,900), Thailand (10,600), and South Korea (4,300).
There were reduction from by Japan (2,600) and Taiwan (200). Exports of 151,600 bales, were up 2%percent from the previous week, but down 6% from the prior 4-week average. Exports were primarily to Vietnam (35,700), Mexico (15,800), Pakistan (14,800), Bangladesh (11,200), and Turkey (9,900).
Net sales of Pima totaling 4,600 bales. That amount was down 52% weekly, and 54% off the prior 4-week average. Increases primarily for India (1,300), Thailand (900), El Salvador (800), Turkey (500), and Pakistan (400). Weekly shipments of 6,000 bales were down 42% weekly and 285 from the prior 4-week average. The primary destinations were India (3,700), Pakistan (1,100), Bangladesh (400), Thailand (400), and Italy (300).
For Friday, support for December cotton is 64.00 cents and 63.45 cents, with resistance at 65.85 cents and 67.50 cents. Overnight estimated volume stands at 6,240 contracts.