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Export report again shows decent picture including Pima sales
13 Apr '07
3 min read
Market consolidation today after yesterday's dramatic sell off. It looks as though any bearish information in today's supply demand report was built into the market yesterday. A new low, indecisive overall though.
Moving averages are both trending lower, with the 9 day now at 52.76 and the 50 day at 53.51. Yesterday's action negates a lot of the previous sideways consolidation work, and we can now expect a real challenge at the contract lows at 51.45.
USDA World Supply and Demand Recap:
There were not any overly dramatic adjustments to the USDA supply and demand balance sheets. Actually the majority of change occurred here in the US. US production was downwardly revised some 160,000 bales to 21.57M, due mostly to the slowdown in US classings of late.
Despite a recent increase in weekly export sales, the overall export figure was cut some 500,000 bales, now at 13.5 million, some 3.3 million bales lower than the original USDA estimates. The US ending stocks are now a massive 9.2 million bales, reflecting a burgeoning stocks to use ratio of 49.86%.
There were no adjustments of large bottom line significance elsewhere in the Cotton world. China again saw a reduction in imports, down 500,000 bales to 13.5 million, whilst their loss column again grew to –3.5 million bales, further underlying the confusion of the USDA bean counters and China.
Other adjustments in the world included a reduction in West African production (150,000 bales) an increase in Brazil (300,000 bales) and Pakistan (150,000 bales). Consumption was raised in Brazil (200,000 bales), and India (200,00 bales). Overall foreign stocks are reduced 190,000 bales to 43.39MB carry out.
Click here to view graphical presentation:
Moving averages are both trending lower, with the 9 day now at 52.76 and the 50 day at 53.51. Yesterday's action negates a lot of the previous sideways consolidation work, and we can now expect a real challenge at the contract lows at 51.45.
USDA World Supply and Demand Recap:
There were not any overly dramatic adjustments to the USDA supply and demand balance sheets. Actually the majority of change occurred here in the US. US production was downwardly revised some 160,000 bales to 21.57M, due mostly to the slowdown in US classings of late.
Despite a recent increase in weekly export sales, the overall export figure was cut some 500,000 bales, now at 13.5 million, some 3.3 million bales lower than the original USDA estimates. The US ending stocks are now a massive 9.2 million bales, reflecting a burgeoning stocks to use ratio of 49.86%.
There were no adjustments of large bottom line significance elsewhere in the Cotton world. China again saw a reduction in imports, down 500,000 bales to 13.5 million, whilst their loss column again grew to –3.5 million bales, further underlying the confusion of the USDA bean counters and China.
Other adjustments in the world included a reduction in West African production (150,000 bales) an increase in Brazil (300,000 bales) and Pakistan (150,000 bales). Consumption was raised in Brazil (200,000 bales), and India (200,00 bales). Overall foreign stocks are reduced 190,000 bales to 43.39MB carry out.
Click here to view graphical presentation:
ECOM USA Inc
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