Last week’s US export sales amounted to a combined 236,400 running bales net, with 22 markets vying for a piece of the action. Shipments continued to be slow at 79,300 running bales, which is due to the limited availability of cotton at this point.
New York cotton futures ended the previous week mixed, with December going up 45 points to close at 61.85 cents/lb, while March fell 51 points to #
Total commitments for the season now amount to around 5.7 million statistical bales, of which just 0.8 million bales have so far been exported.
If US domestic needs of 3.7 million bales for the current season are added to the export sales, the figure arrived is 9.4 million bales in total commitments, which amounts to about 50% of the expected supply this season.
This is a fairly high percentage considering that the crop is still mostly out in the field, which leaves not much room for error. Any threat to the availability of premium grades would catch the market by surprise and send the shorts scrambling for cover.
The Plexus report therefore remains cautiously bearish, mindful of the fact that there is still a lot of weather to negotiate. It further advises to play any bearish scenarios via the use of options until the outcome of the crop is known. (AR)
Fibre2fashion News Desk - India