DTN Cotton Open: Market Treads Lower Waters

    Cotton modules lined up in a gin yard. ©Debra L Ferguson

    The cotton market is moderately lower Friday as it warily watches the Dow Jones, while digesting okay export sales data from USDA. Thursday saw the Dow Jones tank another 400 points lower, stretching its recent losing streak to some thousand Dow points lower.

    USDA’s delayed exports-sales should be considered supportive to the trade. A summary from the government’s website is as follows: Net sales of 273,000 RB for 2021/2022 were down 32 percent from the previous week, but up 12 percent from the prior 4-week average.

    Increases primarily for Pakistan (62,600 RB), China (62,200 RB, including 6,400 RB switched from Vietnam), Bangladesh (28,100 RB), Vietnam (27,200 RB, including 1,300 RB switched from Japan), and Turkey (25,800 RB), were offset by reductions for Japan (900 RB) and Mexico (400 RB).

    Net sales of 139,200 RB for 2022/2023 were primarily for Pakistan (95,000 RB) and Honduras (22,200 RB). Exports of 198,700 RB were up 19 percent from the previous week and 41 percent from the prior 4-week average. The destinations were primarily to China (55,200 RB), Vietnam (54,200 RB), Mexico (31,200 RB), Pakistan (13,700 RB), and Turkey (10,300 RB).

    Net sales of Pima totaling 3,800 RB were up 58 percent from the previous week, but down 26 percent from the prior 4-week average. Increases were primarily for India (1,200 RB), Italy (500 RB), Japan (500 RB), Taiwan (400 RB), and Pakistan (400 RB).

    Exports of 7,500 RB were down 19 percent from the previous week, but up 7 percent from the prior 4-week average. The destinations were primarily to India (2,400 RB), Peru (1,500 RB), Pakistan (1,000 RB), Germany (900 RB), and Egypt (900 RB).

    Friday afternoon at 3:30 p.m. EST, CFTC will update its commitments-of-traders data. Last count, the managed-money funds were roughly 76,700 contracts net long.

    For Friday, close-in support for March cotton is 120.60 cents and 119.90 cents, while resistance stands at 124.78 cents and 125.25 cents. The estimated morning volume is 6,649 contracts.

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