Despite strong performances in the grains, energies and precious metals, cotton futures were lower all day. In fact, even the falling U.S. dollar had no positive effect on the market. Cotton has some concerns that India’s COVID-19 crisis will deleteriously affect neighboring countries such as Bangladesh, where a huge amount of textile spinning is conducted.
Cumulative export sales for 2020/21 have reached 15.213 million bales, down from 15.554 million last year but above the five-year average at 13.253 million. Sales represent 96.6% of USDA’s forecast for the marketing year versus a five-year average of 99.8%. The largest net buyer this week was Bangladesh at 15,443 bales for 2020/21 and 21,648 for 2021/22, for a total of 37,091.
West Texas remains in dire need of a good soaking, but there has been some crop improvement after the last week with scattered rainfall. The 6- to 10-day forecast does suggest below normal precipitation across the northern half of the state, but precipitation chances are somewhat enhanced in the 8- to 14-day outlook.
Upon Friday’s close, July cotton is up 1.58 cents for the week, up 1.58 cents for month and is 10.49 cents higher on the year.
Friday, July cotton closed at 90.80 cents, down .92 cent; December settled at 86.89 cents, up .17 cent; and March (2022) ended at 85.92 cents, plus .10 cent. Friday’s estimated volume was 30,043 contracts.