The market traded higher overnight on the hopes a U.S.-China deal was gaining momentum. In a goodwill gesture, President Trump has delayed the implementation of the October 1 tariffs until October 21. For their part, China was making price inquiries into certain U.S. agriculture products including pork and soybeans. The market is also awaiting USDA’s monthly supply-demand report released at 11:00 a.m. CDT Thursday. Traders are looking for reductions to the U.S. crop exports, resulting in a slight decline in ending stocks.
However, today’s weekly sales and exports were fairly dismal. A summary of the report is as follows:
Net sales for 2019/202 were 74,600 bales, which was down 54% from the previous week, and 63% from the prior 4-week average. Increases were primarily for Bangladesh (17,300), Vietnam (17,200), Pakistan (10,100), South Korea (9,400), and Turkey (9,200). Reductions were reported for China (20,800). For 2020/2021, total net sales of 500 were for Japan.
Exports of 166,900 were down 28% from the previous week and 35% from the prior 4-week average. Exports were primarily to Vietnam (46,100), Bangladesh (22,900), China (21,300), Turkey (14,800), and Mexico (13,700).
Net sales of Pima totaling 3,800 were up noticeably from the previous week, but down noticeably from the prior 4-week average. Increases were for Peru (1,600), India (1,300 RB), Thailand (400), Turkey (300), and Bangladesh (300). Exports of 4,600 RB were primarily to India (2,000), China (1,300), and El Salvador (1,000). What today’s sales and exports data implies is that even under 60 cents, demand for cotton is stagnant.
For today, support for December Cotton is 59.10 cents and 57.80 cents, with resistance at 60.25 cents and 61.50 cents. Overnight estimated volume is 7,207 contracts.
