By admin       2018-10-26

After yesterday’s tumultuous break, the cotton market still cannot find bullish traction this morning. To that end, today’s weekly sales and exports report was of no help. Net sales of 40,600 RB for 2018/2019 were up 24% weekly, but down 27% from the prior 4-week average. Increases were reported for Pakistan (22,900), Turkey (11,600), Mexico (9,900), Costa Rica (9,400), and Japan (8,000). Reductions were reported for China (41,900), South Korea (3,000), and Vietnam (2,800). For 2019/2020, net sales of 4,600 RB were reported for Costa Rica (3,200) and Peru (1,400). Exports of 139,200 RB were up 3% from the previous week, but down 16% on the 4-week average. Exports were primarily to Vietnam (42,500), Mexico (18,900), China (10,700), Pakistan (9,200), and Indonesia (8,700). Net sales of Pima totaling 11,400 RB for 2018/2019 were up noticeably from the previous week and up 62 percent from the prior 4-week average. Increases were reported for Vietnam (4,400), China (4,000), Thailand (1,200), and Pakistan (900). Technically, the market remains in a steep down trend as most indicators still point south. Fundamentally, between speculator selling, harvest pressure, lackluster demand and a strong dollar, the near-term uphill climb will be steep. For today, support for December cotton is at 7535 and 7355, while resistance lies at 7775.

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