Heavily influenced by a roiling Dow Jones, the cotton market cannot find any bullish footing. Despite being severely oversold, and even in the face of strong export sales, the cotton market is apparently dialing future demand destruction for the world.
To that end, the following is a summary of USDA’s data: Cotton: Net sales of 277,100 RB for 2019/2020 were down 19 percent from the previous week and 23 percent from the prior 4-week average.
Increases primarily for Vietnam (74,900 RB, including 1,300 RB switched from Malaysia and decreases of 9,300 RB), Turkey (55,200 RB, including 2,200 RB switched from Vietnam), Pakistan (53,200 RB, including decreases of 1,800 RB), China (44,900 RB, including decreases of 8,800 RB), and Indonesia (13,300 RB, including 300 RB switched from Japan and decreases of 800 RB), were offset by reductions for Japan (1,400 RB) and Honduras (600 RB).
For 2020/2021, net sales of 120,100 RB were primarily for Pakistan (26,400 RB), China (17,600 RB), South Korea (15,400 RB), Mexico (12,800 RB), and Honduras (9,700 RB). Exports of 386,800 RB were up 5 percent from the previous week, but down 3 percent from the prior 4-week average.
Exports were primarily to Pakistan (86,100 RB), Turkey (71,300 RB), China (65,800 RB), Vietnam (55,200 RB), and Indonesia (31,500 RB).
Net sales of Pima totaling 18,300 RB were up 7 percent from the previous week and 2 percent from the prior 4-week average. Increases were primarily for China (8,400 RB), Pakistan (6,100 RB), India (1,500 RB), Indonesia (1,300 RB), and Italy (500 RB), were offset by reductions for Switzerland (900 RB), Japan (300 RB), and El Salvador (200 RB).
Exports of 17,400 RB were up 11 percent from the previous week and 8 percent from the prior 4-week average. The primary destinations were primarily to China (4,000 RB), Pakistan (3,900 RB), India (3,600 RB), El Salvador (1,200 RB), and Vietnam (1,100 RB).
For Thursday, close-in support for May cotton is 52.22 cents and 50.00 cents, with resistance at 54.80 cents and 55.00 cents. Overnight estimated volume stands at 7,480 contracts.