DTN Cotton Open: Lower on Mixed Data

    Photo: Mississippi State University

    The cotton market is lower Thursday morning after USDA issued mixed results on its weekly export sales report. Weekly sales were higher than last week, but shipments were double-digits lower.

    The summary is as follows: Net sales of 136,700 RB for 2021/2022 were up 7 percent from the previous week, but down 46 percent from the prior 4-week average. Increases were primarily for Vietnam (40,400 RB, including 600 RB switched from Thailand, 200 RB switched from Japan, and 100 RB switched from China), Turkey (30,800 RB, including 4,400 RB switched from Vietnam), China (13,500 RB), Nicaragua (13,200 RB, including 8,800 RB switched from Vietnam), and Indonesia (6,500 RB).

    Net sales of 7,200 RB for 2022/2023 were reported for Turkey (4,400 RB) and Colombia (2,800 RB). Exports of 77,900 RB were down 11 percent from the previous week and 24 percent from the prior 4-week average. The destinations were primarily to Mexico (30,200 RB), China (20,500 RB), Vietnam (6,500 RB), Pakistan (6,300 RB), and Thailand (2,100 RB).

    Net sales of Pima totaling 20,600 RB were up noticeably from the previous week and up 17 percent from the prior 4-week average. Increases were primarily for Peru (8,200 RB), India (8,100 RB), Turkey (1,300 RB), Germany (1,100 RB), and China (900 RB). Exports of 6,500 RB were down 32 percent from the previous week, but up 6 percent from the prior 4-week average. The destinations were to India (4,900 RB), Italy (1,100 RB), Taiwan (400 RB), and Thailand (100 RB).

    Brazil’s agricultural agency Conab forecasted 2022/23 cotton planted area at 1.5 million hectares. One hectare equals 2.47 U.S. acres. At any rate, that forecast is 9.3% higher than during the 2021/22 season. Wednesday a private international analyst projected U.S. cotton acres for 2022 at 12.35 million.

    For Thursday, close-in support for March cotton is 115.00 cents and 113.50 cents, while resistance stands at 117.50 cents and 118.50 cents. The estimated morning volume is 12,352 contracts.

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