The cotton market is lower again Wednesday as swirling fears over coronavirus has new buyers scarce. Tuesday, U.S. health officials suggested in a news briefing that “it is not a matter of if, but when coronavirus will come full force to the United States”.
Such language, while prudent, still could scare the people out of their normal activity. Thus, the U.S. could see a downturn in economic activity, and that would include new apparel purchases.
Thursday, USDA will issue its weekly export sales data. The last few weeks have seen very strong business with marketing-year highs in sales and shipments. However, it will be interesting to see if the pace of U.S. cotton business stays strong to those Asian nations effected by coronavirus.
March cotton remains in its delivery period to which there were 10 notices issued Wednesday. Most were tendered by BNP and all were stopped by Term Commodities. Thus far, for the 2019/2020 marketing season, a total of 1,113 contracts have been tendered during those several notice periods.
Currently, the May cotton contract is down 326 points for the week, (two days), 257 points since the first of February, and 272 points since the start of 2020.
For Wednesday support for May cotton lies at 66.15 cents and 64.27 cents, with resistance at 67.74 cents and 68.82 cents. Overnight estimated volume is 7,688 contracts.