The cotton market is neutrally digesting Wednesday’s monthly supply-demand report. That data kept domestic cotton numbers unchanged but did reflect a 1.74 million-bale cut to the world ending stocks. The peace talks held in Turkey between Ukraine and Russia abruptly ended with no resolution. Thursday morning metals and energies are higher, while the Dow Jones is markedly lower.
USDA issued slightly better business for last week. Its summary follows:
Net sales of 354,200 RB for 2021/2022 were up 2 percent from the previous week and 51 percent from the prior 4-week average. Increases primarily for China (170,300 RB, including decreases of 800 RB), Turkey (70,500 RB, including decreases of 300 RB), Pakistan (49,600 RB), Vietnam (35,400 RB, including 1,100 RB switched from Japan), and Indonesia (7,100 RB, including 300 RB switched from Japan and decreases of 900 RB), were offset by reductions for India (4,000 RB) and Nicaragua (100 RB).
Net sales of 68,200 RB for 2022/2023 were primarily for Turkey (28,600 RB), Pakistan (12,600 RB), China (8,800 RB), Mexico (8,200 RB), and Colombia (5,100 RB). Exports of 321,300 RB were down 9 percent from the previous week and 1 percent from the prior 4-week average. The destinations were primarily to China (108,800 RB), Pakistan (61,800 RB), Turkey (30,400 RB), Vietnam (30,300 RB), and Mexico (26,100 RB).
Net sales of Pima totaling 700 RB were down 91 percent from the previous week and 87 percent from the prior 4-week average. Increases were reported for Italy (500 RB), Indonesia (100 RB), and India (100 RB). Exports of 22,500 RB–a marketing-year high–were up noticeably from the previous week and up 65 percent from the prior 4-week average. The destinations were primarily to India (7,900 RB), China (3,700 RB), Vietnam (3,100 RB), Peru (2,100 RB), and Pakistan (1,700 RB).
The Commerce Department reported worsening inflation for February. Its CPI (consumer price index) measures a wide-ranging basket of goods and services, and it showed an increased 7.9% over the past 12 months. That is a new 40-year high. The acceleration was the fastest pace since early 1982. Month-over-month, the CPI gain was 0.8% versus expectations of an increase of 7.8% annually, and 0.7% for the month.
For Thursday, close-in support for May cotton is 116.90 cents and 115.40 cents, while resistance stands at 118.60 cents and 119.20 cents. The estimated morning volume is 3,442 contracts.
