COTCO Company wants to update Sales – Exports of US cotton this week with the following market news:
Cotton prices fell to the trading limit on Thursday. ICE Cotton contracts in March fell 4.00 c/lb, ICE May fell 3.78 c/lb to close at 84.30 and 83.85 c/lb respectively. The identified decreasing factor:
1/ Disappointing US cotton weekly export sales data from USDA was released last night. A significant drop from top consumer China, and pervasive weakness in other commodities triggered a technical sell-off.
For the week ending 15th December, USDA saw sales drop by 87,800 bales for the 22/23 crop and export shipments to only about 110,000 bales. The decline in exports to China eclipsed the gains of Vietnam, India and Pakistan.
2/ Market is also entering “holiday mode”. As the holidays arrive, volatility increases due to slow trading volume.
3/ The US dollar’s rise against most other currencies yesterday made US cotton more expensive.
4/ US GDP growth in Q3 is estimated at 3.2% – much higher than pre-report expectations. However, with observed vacation spending in U.S., it is not as high as expected.
5/ Sentiment also spread from Wall Street, where the main indexes fell on worries about the US Federal Reserve and central banks worldwide continuing to tighten monetary policy will push the economy falls into recession
Traders expect the cotton futures market to rebound in the spring, but it will be a bumpy ride from here to there.
Forecast the trend on the chart, below the market at 75.88-77.34 and above the market at 90.73-91.80.
The cotton trading will be closed on Monday, 26th December for the Christmas holiday.
Merry Christmas!
Posted on 23/12/2022
Thank you for your interest in the information of COTCO NEWS