US cotton exports were down tremendously from last week, but this was expected due to tightness of stocks and the nature of last week’s large sales into China.
USDA-FAS reported total net sales of 64.1K RBs and 228K RBs of export shipments against the current MY. Sales cancellations were reported at a mere 1.4K RBs.
Total commitments against the current MY now exceed the USDA’s 10.4M bale export projection by approximately 2%.
Total net sales against the 2014/15 MY were reported at 116K RBs; total sales against the coming MY now stand at 21% of the USDA’s projected 9.7M bale export projection.
The market has not reacted positively to today’s report, although it has not collapsed. Today’s report infers a further tightening of US stocks and net sales can average (21K) RBs per week for the remainder of the current MY and still meet the USDA’s current export projection while shipments will need to average approximately 130K RBs per week in order to hit the target.