USDA reported weekly export sales of 281,200 bales. The old crop total was at the upper end of trade estimates that had ranged from 200,000 to 300,000 bales.
USDA cut the U.S. and global carryover estimates. Chinese cotton production is down 15 percent in 2009 to 29.4 million bales. U.S. cotton production estimates of 12.4 million bales are the lowest in 19 years. Speculators have added to long positions near 40,000 bales. Carryover estimates remain near 3 million bales. That will be a 14-year low and down nearly 53 percent.
USDA reported only 6 percent of the U.S. crop planted; 9 percent is average for this date. Texas is normally 14 percent finished but the actual completion is 9 percent.
Bearish news: Cotton is trading lower. One reason may be the absence of 2010-11 sales reported. May cotton prices corrected down to a two-month low from last month’s two-year high. The weekly report shows long market positions down to only 12 percent of the open interest.
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