US Cotton Trade Shows Mixed Signals as Sales Ease and Shipments Hold Ground
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Late December brought a shift in momentum for US cotton trade, with export sales cooling after a brief phase of mid month strength. Data from the US Department of Agriculture indicate that Upland cotton sales for the current marketing year softened during the week ending December twenty five, reflecting a more cautious buying mood among global spinners. While weekly sales volumes declined from the previous week, they still stayed slightly above the level recorded in the same period last year. Forward bookings for the next marketing year remained thin, underlining hesitation as mills weigh demand outlook, price movement, and inventory positions. This pause suggests buyers are choosing timing carefully rather than exiting the market altogether.

In contrast to slower sales, physical movement of cotton continued at a healthy pace. Shipments remained firm, reinforcing confidence in underlying demand. Vietnam led destinations once again, followed by Pakistan, Indonesia, Malaysia, and Bangladesh, with additional volumes moving to China, India, Turkiye, and Latin America. The steady flow highlights that mills with existing contracts are actively lifting cargo, keeping export channels busy even as new deals slow. Key shipment insight include

• Vietnam remains the top destination

• Asia continues to dominate cotton intake

• Cumulative exports stay ahead of last year

Pima cotton trade mirrored the broader tone. Sales eased week on week but remained higher than last year levels for the same period. Outstanding sales declined, while cumulative shipments edged higher, though still below last season total. The pattern signals stability without urgency, with buyers focusing on near term needs rather than aggressive stock building.

Overall, the late December data paint a balanced picture. Sales momentum has softened, yet shipment strength shows demand has not disappeared. As the new year begins, the market appears steady, watchful, and driven more by execution than expansion.

11:24 AM, Jan 08

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