The cotton market is essentially starting Thursday steady and quiet but is up on the week. Earlier this week, the market along with many others, was caught in the omicron downdraft. However, since Monday, it has reversed its direction and seems to want to trade sideways-to-higher into year’s end.
USDA reported okay export sales this morning. From its website the summary is as follows: Net sales of 243,900 RB for 2021/2022 were down 15 percent from the previous week and 21 percent from the prior 4-week average.
Increases were primarily for China (68,700 RB, including 2,200 RB switched from Vietnam and decreases of 8,800 RB), Vietnam (32,700 RB, including 600 RB switched from South Korea and decreases of 100 RB), Turkey (29,000 RB), Pakistan (23,500 RB, including 300 RB switched from the United Arab Emirates), and Mexico (22,800 RB), were offset by reductions for South Korea (1,700 RB), Malaysia (400 RB), and the United Arab Emirates (300 RB).
Net sales of 49,400 RB for 2022/2023 reported for Mexico (42,900 RB), Pakistan (4,400 RB), Vietnam (1,400 RB), and Indonesia (1,200 RB), were offset by reductions for China (500 RB). Exports of 131,100 RB were unchanged from the previous week, but up 27 percent from the prior 4-week average. The destinations were primarily to China (58,300 RB), Vietnam (17,900 RB), Mexico (10,300 RB), Turkey (10,200 RB), and Pakistan (8,400 RB).
Net sales of Pima totaling 6,500 RB were up noticeably from the previous week, but down 20 percent from the prior 4-week average. Increases primarily for Thailand (2,600 RB), India (1,400 RB), Pakistan (900 RB), Japan (900 RB), and China (700 RB), were offset by reductions for Egypt (900 RB).
Total net sales of 400 RB for 2022/2023 were for Egypt. Exports of 4,500 RB were down 47 percent from the previous week and 30 percent from the prior 4-week average. The destinations were to China (2,200 RB), India (1,700 RB), Pakistan (400 RB), and Turkey (200 RB).
The market will be closed Friday for Christmas and reopens Monday morning at 7:30 a.m. EST. Also Monday, CFTC will update its traders’ status, the most important of which are the managed-money funds. At last count, that group was net long some 69,000 contracts.
For Thursday, close-in support for March cotton is 107.50 cents and 106.75 cents, while resistance stands at 109.35 cents and 109.70 cents. The estimated morning volume is 3,035 contracts.
