REUTERS: US cotton retreats as exports disappoint, traders book profits
REUTERS: US cotton retreats as exports disappoint, traders book profits

REUTERS: US cotton retreats as exports disappoint, traders book profits

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Jan 26 (Reuters) -ICE cotton futures slipped on Friday as traders digested the first lackluster exports report in six weeks, but the natural fiber stayed on course for a third consecutive weekly gain, which also prompted some profit-taking.

* Cotton contracts for March CTc1 fell 1.23 cents, or 1.4%, to 84.53 cents per lb by 12:25 (1725 GMT) after touching a more than three-month peak of 85.86 cents a lb earlier.

* If losses hold, prices would have their worst session in two months. Still, they were set to rise for the third consecutive week.

* "China and Vietnam comprise about 52% of our sales, but they were almost 70% of our shipments. No one else is accepting shipment, which tells me an inability to pay for their commitments," said Louis Barbera, partner and analyst at VLM Commodities.

* "We need to see performance of contracts from basically anyone not named China."

* The U.S. Department of Agriculture's (USDA) weekly export sales report on Thursday showed exports of 142,200 running bales for 2023/2024, with a combined 76,600 bales headed for China and Vietnam. Nearly half the sales were also to top consumer China. EXP/COT

* Before this, weekly shipments had stayed above 200,000 bales in the last five reports and set a new marketing-year record of 257,700 bales last week.

* "Cotton has exhausted itself in the short term, but with the pace of sales right now, you can make the case for holding above 80 cents going forward," Barbera added, expecting prices to trade between 81 cents and 88 cents a lb.

* In the grains market, Chicago soybeans and corn edged lower as increased estimates for Argentina's harvest added to the price pressure of large South American supplies that could curb U.S. exports. GRA/

Reporting by Deep Vakil in Bengaluru; Editing by Shailesh Kuber

Source: Reuters

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