Please refer Sales – Export report of US cotton this week with and break market news as follow:
ICE cotton futures fell from a more than two-week high on Thursday after the USDA weekly report showed a sharp drop in cotton sales, while the higher dollar made it difficult for spinning mills in Pakistan.
- ICE May: Closed at 83.71 c/lb, down 195 points;
- ICE July: Closes at 84.41 c/lb, down 160 points;
- Open interest (OI) in May increased to nearly 95,000 contracts, while total open interest (OI) was little changed at 185,500 contracts.
Weekly export sales report: Ended on February 23 by the US Department of Agriculture shows a remarkably low figure. A total of 170,600 Upland bales were sold for crop 2022/23 and 97,200 bales for 2023/24. China is still the biggest buyer, which accounts for almost half of the sales, placing 81,600 bales, followed by Vietnam at 78,900. Export shipments increased slightly from the previous week, with 207,700 bales.
Big sales drop mainly for Pakistan as the dollar shortage in the banking sector is posing a threat to textile spinning mills, they have difficulty in opening letters of credit (LC).
The dollar index (USD) gained 0.59% at the close of the session on March 2. The strengthening greenback forecast the Federal Reserve must continue to raise interest rates to tame inflation after unemployment data showed that the US job market remains strong and labor costs are increasing.
The United States is rattling close allies about the possibility of imposing new sanctions on China if Beijing provides military assistance to Russia in the war in Ukraine. China is one of the top US cotton consumers, which is not good for the cotton market if sanctions occur.
Short-term ICE May cotton forecast: chart lows at 81.08 – 81.66 and highs at 89.66 – 90.24.
The updated report is as follows:
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