Cotton futures rise as China leads buying from the US

August 13, 2020 – Cotton futures climbed 2% earlier on Thursday, on track for their biggest daily rise in nearly two weeks, after weekly US data showed solid exports to China, while dry weather lent further support.

Branch of ripe cotton on the cotton field, Uzbekistan

Cotton contracts for December were up 0.97 cent, or 1.6%, at 63.17 cents per lb. at 1:22 p.m. EDT (1722 GMT). The US Department of Agriculture’s (USDA) weekly export sales report showed exports of 278,600 bales, out of which 157,100 bales were shipped to China in the week leading up to Aug. 6.

“China has taken the lion’s share of those new exports this week. … That is a very positive factor for the market,” said Bailey Thomen, cotton risk management associate with StoneX Group. Cotton could also be carrying some strength over from other markets like grain and stocks, Mr. Thomen said.

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