The cotton market is attempting to gain back some of its steep losses from Friday’s news of a new COVID variant named Omicron. It surprised and shocked most financial and commodities markets demonstratively lower. The Dow Jones dropped a thousand points, crude oil was down nearly eleven dollars, and cotton was off some 475 points. Now the world is waiting on global health organizations to determine the intensity of this new virus.
From Friday’s weekly export sales report we note that cumulative sales for 2021/22 have reached 8.970 million bales. That amount is down from last year’s 9.58 million, and below the 5-year average of 9.05 million bales.
Still current year sales stand at 61% of the USDA’s seasonal target versus a 5-year average of 63%. Last week’s delayed exports-sales revealed that China was the largest buyer (67,299), followed by Vietnam (44,539), Pakistan (38,584), Bangladesh (36,476), and Turkey (33,269) of bales bought.
Monday afternoon at 4 p.m. CST USDA will update the pace of the 2021 harvest. Last week the crop stood at 75% harvested.
OPEC and other oil producing nations will be meeting this Thursday as to what response they will collectively do to the America release of oil reserves. There is talk OPEC will maintain or reduce output.
December cotton remains in its delivery period. The ICE reported no deliveries issued Monday. December cotton expires on December 8.
For Monday, close-in support for March cotton is 110.70 cents and 114.30 cents, while resistance stands at 117.45 cents and 118.50 cents. The estimated morning volume is 7,522 contracts.