By admin       2019-04-05

The cotton market is higher Thursday as trend-following traders bought into yesterday’s decline. Their action has rallied cotton prices higher in the overnight market. Most moving averages, a staple trading tool of many traders, have hooked bullish.That is causing unfixed textile mills and short-sold speculators to rethink their current positions. Highlights of Thursday weekly sales and exports are as follows:Net sales were 322,100 bales for 2018/2019. That was up 47% weekly, and up noticeably from the prior 4-week average. Increases were reported for Vietnam (100,800), China (59,000), Bangladesh (48,700), India (43,800), and Turkey (42,700). Reductions were reported for South Korea (9,800), Indonesia (4,700), and Japan (900).For 2019/2020, net sales were 151,100 bales, primarily for China (118,000). Weekly Exports were 410,900 bales, up 8% from the previous week and 19% from the prior 4-week average. Exports were primarily to Vietnam (86,200), Turkey (80,800), Pakistan (51,100), China (46,500), and Indonesia (28,800).Net sales of Pima totaling 16,100 bales, which was down 48% from the previous week and 33% from the prior 4-week average. Increases were primarily for China (10,100), India (2,600), and Pakistan (1,800).Traders are mostly upbeat this morning as optimism that U.S. and China will soon reach a deal is running high. There are expectations President Trump will meet with Chinese Vice Premier Liu He in Washington Thursday. He is China’s number two man. To that end, some news wires are reporting a U.S.-China deal is at hand.In other overnight news, India’s central bank lowered its main interest rate for the second time this year, to 6.0%. This action should weaken the Rupee, and thus strengthen the U.S. dollar, always a negative nuance for U.S. cotton.For Thursday, close-in support for May cotton is 76.85 cents and 76.47 cents, with resistance at 77.93 cents and 78.00 cents. Overnight estimated volume is 8,002 contracts.

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