The cotton market is reflecting year-end jitters and poor sales data Thursday. Sales were weaker than last week, although shipments did improve. From the USDA website, we reprint the weekly export-sales report.
Net sales of 192,200 RB for 2021-22 were down 21% from the previous week and 40% from the prior four-week average. Increases were primarily for China (69,300 RB), Turkey (38,000 RB, including decreases of 2,700 RB), Indonesia (30,000 RB, including 2,700 RB switched from Japan), Pakistan (18,100 RB), and Vietnam (15,200 RB, including 200 RB switched from Japan), were offset by reductions for Japan (2,300 RB).
Net sales of 24,400 RB for 2022-23 reported for Pakistan (25,100 RB), were offset by reductions for China (700 RB). Exports of 162,200 RB were up 24% from the previous week and 45% from the prior four-week average. The destinations were primarily to China (45,600 RB), Vietnam (42,200 RB), Pakistan (15,600 RB), Turkey (15,300 RB), and Mexico (6,500 RB).
Net sales of Pima totaling 7,100 RB were up 9% from the previous week and 37% from the prior 4-week average. Increases were primarily for China (4,300 RB), India (1,500 RB), Thailand (900 RB), and South Korea (300 RB). Exports of 7,000 RB were up 55% from the previous week and 16% from the prior four-week average.
The destinations were primarily to China (2,200 RB), Honduras (1,700 RB), India (1,300 RB), and Peru (1,000 RB).
Overnight China is wagging a cautionary finger at the U.S., not to involve itself with Taiwan. There has been some internal clamor for Taiwan to declare itself a sovereign nation. To that end, China said it will take “drastic measures” if this should happen.
For Thursday, close-in support for March cotton is 110.20 cents and 109.05 cents, while resistance stands at 114.00 cents and 114.50 cents. The estimated morning volume is 3,228 contracts.
