USDA Report: Mixed signals for US cotton exports.

This week's US cotton export report shows a slowdown in Upland sales for the current season (2023-24) compared to previous weeks. Net sales dipped 4 per cent from the prior week and 10 per cent from the average. However, the decline was moderate, and some key destinations like China and Pakistan saw increases.

Looking at specific countries, China remains the top buyer with increased purchases (despite some cancellations). Pakistan and several other countries also upped their orders. Offsetting these gains were reductions from Turkey, Indonesia, and South Korea.

The report offers a brighter outlook for the upcoming season (2024-25) with initial sales already reaching 35,700 RB, primarily driven by Turkey and Vietnam.

Pima cotton, a premium fiber variety, bucked the downward trend for Upland. Net Pima sales for the current season rose significantly compared to both the prior week and the average. Key buyers included Pakistan, China, and India.

Overall, the report paints a picture of cautious optimism for the US cotton market. While Upland sales for the current season are slowing, new season sales are promising. The strong performance of Pima cotton adds another positive note.