Total net export sales of cotton against the current MY for the week ending Jan 22 were reported at 559.3K RBs, a MY high. China and Vietnam were again the largest takers of US cotton over the period, accounting for over 50% of the weekly net sales. Sales cancellations were 37.6K RBs. Total export shipments were 283.4K RBs, a MY high and in excess of the weekly pace required to meet the USDA’s 10M bale export target.
Total commitments now stand at above 94% of the USDA’s export projection. Net sales will need to average less than 25K RBs per week in order to meet the target while shipments will need to average approximately 240K RBs per week.
We take today’s sales and shipment data to be very supportive, although the market has moved in excess of 200 points higher this week. A large portion of the move higher was likely in anticipation of today’s report.
