The cotton market is higher Thursday morning as it attempts to correct its severely oversold condition. Wednesday saw the market close under the 50-cent mark, with December and March finishing limit-down. Thus, Thursday’s trading limit has increased to four hundred points.
USDA reported less than seller weekly export sales, but at least they were not net negative. A summary follows:
Net sales of 147,500 RB for 2019/2020 were down 47 percent from the previous week and 61 percent from the prior 4-week average.
Increases primarily for Vietnam (77,500 RB, including 2,100 RB switched from Taiwan, 700 RB switched from Japan, and decreases of 2,200 RB), China (24,500 RB), South Korea (15,000 RB, including 4,400 RB switched from Vietnam), Japan (14,000 RB, including 400 RB switched from South Korea and decreases of 500 RB), and Turkey (11,200 RB), were offset by reductions for Thailand (4,900 RB), Malaysia (4,800 RB), and Bangladesh (1,000 RB).
For 2020/2021, net sales of 111,400 RB primarily for Turkey (36,100 RB), Pakistan (17,200 RB), Indonesia (12,800 RB), Portugal (11,000 RB), and Bangladesh (11,000 RB), were offset by reductions for Guatemala (500 RB).
Exports of 400,800 RB were up 4 percent from the previous week, but down 3 percent from the prior 4-week average. Exports were primarily to Vietnam (92,400 RB), China (71,800 RB), Pakistan (70,400 RB), Turkey (68,000 RB), and Bangladesh (23,200 RB).
Net sales of Pima totaling 200 RB were down 99 percent from the previous week and from the prior 4-week average.
Thursday’s jobless claims of 6.60 million was an all-time record. President Trump has warned the nation the next two weeks will be a very crucial in the life of the coronavirus.
For Thursday, support for May cotton is 48.35 cents, with resistance at 50.30 cents and 51.75 cents. Overnight estimated volume stands at 12,507 contracts.