The cotton market is trading higher Thursday morning, basking in the positive supply-demand numbers it saw yesterday, as well as the strong sales and exports seen Thursday. Additionally, the U.S. dollar continues to work lower.
Thursday’s weekly sales exports data are as follows: net sales of 401,000 RB for 2021/2022 were up noticeably from the previous week and up 85 percent from the prior 4-week average. Increases were primarily for China (139,500 RB), India (74,700 RB), Turkey (53,200 RB), Pakistan (38,400 RB), and Vietnam (36,600 RB, including 300 RB switched from China). Net sales of 38,300 RB for 2022/2023 were primarily for Pakistan (36,500 RB).
Exports of 167,600 RB were up 60 percent from the previous week and 27 percent from the prior 4-week average. The destinations were primarily to China (59,000 RB), Vietnam (26,900 RB), Turkey (19,400 RB), Mexico (18,000 RB), and Pakistan (13,700 RB).
Net sales of Pima totaling 2,400 RB were down 46 percent from the previous week and 49 percent from the prior 4-week average. Increases were primarily for China (1,700 RB), Pakistan (300 RB), and Brazil (300 RB). Exports of 9,300 RB were up 29 percent from the previous week and 37 percent from the prior 4-week average.
Thursday’s other economic news included December’s PPI (producer price index) which measures wholesale prices for goods and services. The data showed an increase of 0.2% for the month. Although it was below expectations, for all of 2021 the 9.7% gain was the biggest gain since 2010. In addition, weekly jobless claims totaled 230,000, well above the estimate, though the four-week average of filings hit its lowest since 1973.
For Thursday, close-in support for March cotton is 116.50 cents and 115.70 cents, while resistance stands at 119.00 cents and 119.50 cents. The estimated morning volume is 8,485 contracts.