By admin       2019-02-01

The cotton market is slightly elevated Thursday morning as it awaits any development from the two-day talks between the U.S. and China. President Trump is scheduled meet with China’s top negotiator Vice-Premier Lui He.USDA released some back-logged sales and exports data this morning. Today’s numbers reflect business done the week ending December 20, 2018. The entirety of the report is as follows: Net sales of 373,100 RB for 2018/2019–a marketing-year high–were up noticeably from the previous week and from the prior 4-week average.Increases were reported for Vietnam (149,200 RB, including 3,200 RB switched from Hong Kong, 2,200 RB switched from South Korea, and 400 RB switched from Taiwan), Bangladesh (59,900 RB), Turkey (35,500 RB), South Korea (28,900 RB, including 4,200 RB switched from China and decreases of 4,800 RB), and China (25,000 RB, including decreases of 29,100 RB).Reductions were reported for Thailand (3,500 RB), Hong Kong (3,200 RB), and Mexico (2,000 RB). For 2019/2020, net sales of 4,000 RB were reported for South Korea (2,600 RB) and Japan (1,400 RB).Exports of 207,100 RB were up 34 percent from the previous week and 40 percent from the prior 4-week average. Exports were primarily to Vietnam (49,800 RB), China (32,500 RB), Mexico (26,600 RB), Pakistan (20,200 RB), and Thailand (12,500 RB).Net sales of Pima totaling 7,800 RB for 2018/2019 were down 18 percent from the previous week and 51 percent from the prior 4-week average. Increases were reported for India (3,900 RB), Austria (1,600 RB), China (900 RB), Pakistan (500 RB), and Turkey (400 RB).Exports of 14,700 RB were up 44 percent from the previous week and 23 percent from the prior 4-week average. The destinations were primarily to China (10,200 RB), Pakistan (2,200 RB), Egypt (900 RB), India (500 RB), and Peru (400 RB).Yesterday, the Federal Reserve turned a bit dovish on interest rates. It indicated it would be patient towards future rate hikes and weigh all the economic data at its disposal. The U.S. dollar fell sharply lower to the announcement.For today, support for March cotton is 73.90 cents and 73.15 cents, with resistance at 75.60 cents. Overnight volume currently stands at 16,375 contracts.

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