U.S. Cotton Export Sales Decline from Previous Week's Peak

MUMBAI, 05 Dec (Commoditiescontrol): The U.S. Department of Agriculture (USDA) reported a decrease in cotton export sales for the week ending November 28, 2024, following a marketing-year high in the prior week. This was divergent to last two reports when the exports hit a marketing year high on both the occasions.

During the week, Upland Cotton net sales for the 2024/2025 marketing year totaled 170,700 running bales (RB), a 47% decline from the previous week's 324,100 RB, which had marked a marketing-year high. This figure is also 33% below the prior four-week average. The primary buyers were Vietnam (84,300 RB), Pakistan (36,700 RB), Turkey (20,400 RB), China (12,700 RB), and Colombia (9,300 RB). Notably, purchases by Vietnam included 900 RB switched from Hong Kong. There was a reduction of 900 RB for Hong Kong.

Exports of Upland cotton reached 157,500 RB, up 21% from the previous week and 18% above the prior four-week average. The main destinations were Pakistan (31,500 RB), China (24,800 RB), Vietnam (20,900 RB), Mexico (12,400 RB), and Bangladesh (10,100 RB).

Pima Cotton net sales for 2024/2025 were 3,700 RB, down 66% from the previous week's 10,900 RB and 60% below the prior four-week average.

The leading purchasers were India (2,300 RB), Thailand (400 RB), Peru (300 RB), Turkey (300 RB), and China (200 RB). Exports totaled 5,700 RB, a 28% decrease from the previous week and 17% below the prior four-week average. The primary destinations were India (2,000 RB), Peru (1,100 RB), Vietnam (1,000 RB), China (900 RB), and Pakistan (400 RB).

The decline in net sales for both Upland and Pima cotton from the previous week's highs suggests a potential softening in demand. However, the increase in exports indicates that previously contracted sales are being fulfilled, maintaining a steady flow of U.S. cotton into global markets.

Market analysts will be closely monitoring upcoming USDA reports to assess whether this downturn in net sales is an anomaly or indicative of a longer-term trend. Factors such as global economic conditions, currency exchange rates, and international trade policies will play crucial roles in shaping future demand for U.S. cotton exports.

(By Commoditiescontrol Bureau; +91 98201 30172)