Overnight the cotton market was lower, influenced by Wednesday’s huge fall in Dow Jones futures. An uptick in the spread of Covid-19 was the basis for the massive spill of Wednesday. Trump Administration officials are now indicating the next two weeks will be extremely critical to the spreading of the virus.
July cotton saw no deliveries Thursday. On day one, there were 171 notices tendered, but they were all reportedly stopped by one commercial.
USDA announced its weekly export sales data, which was largely neutral. A summary of Thursday’s report is as follows.
“Net sales of 102,700 RB for 2019/2020 were up 5 percent from the previous week, but down 23 percent from the prior 4-week average.
Increases primarily reported for China (94,500 RB, including decreases of 1,300 RB), Turkey (4,100 RB), Vietnam (3,600 RB, including 1,500 RB switched from Hong Kong and decreases of 1,000 MT), Bangladesh (2,800 RB, including decreases of 400 RB), and Pakistan (1,500 RB, including decreases of 700 RB), were offset by reductions for Peru (2,200 RB), Hong Kong (1,500 RB), and Thailand (900 RB).
For 2020/2021, net sales of 67,900 RB reported for China (36,500 RB), Vietnam (33,400 RB), Peru (2,200 RB), and Bangladesh (400 RB), were offset by reductions for Turkey (4,100 RB) and Indonesia (600 RB).
Exports of 316,100 RB were down 9 percent from the previous week, but up 10 percent from the prior 4-week average. Exports were primarily to China (130,700 RB), Vietnam (59,400 RB), Turkey (38,400 RB), Pakistan (38,200 RB), and Bangladesh (9,200 RB).
Net sales of Pima totaling 4,200 RB were down 16 percent from the previous week and 12 percent from the prior 4-week average. Increases were primarily for India (1,100 RB), Thailand (900 RB), China (900 RB), Pakistan (600 RB), and Peru (500 RB).
Exports of 9,600 RB were up 61 percent from the previous week and 58 percent from the prior 4-week average. The destinations were primarily to China (4,400 RB), India (2,200 RB), Bangladesh (900 RB), Peru (600 RB), and Honduras (400 RB).”
The Labor Department issued its weekly jobless claims data; expectations called for 1.35 million new applications, but the actual number was 1.48 million. Dow Jones bent lower upon seeing the report.
For Thursday, close-in support for December cotton lies at 58.70 cents and 58.00 cents, with resistance at 60.10 cents and 60.40 cents. Current volume is 2,597 contracts.
