Cotton ICE traded at a 2-week high of 123 USd/Lbs, rising from its 8-week low of 116 hit on March 10th amid expectations of lower supplies coupled with strong demand.
USDA’s weekly export sales data showed that cotton shipments reached 96% of the USDA’s marketing year estimates to 371,400 bales, which is also 5% more than that of the previous week and 34% higher from the prior 4-week average.
At the same time, concerns grew over the drought conditions in West Texas on the back of lower than normal precipitation forecasts for the area.
Also, USDA in its March 10th report estimated 2021/22 global cotton consumption to be 111,000 bales higher compared to last month’s projections while it sees world ending stocks 1.7 million bales lower due to smaller global production, particularly from India.
