US cotton sales should decline due to the Lunar New Year festival in leading customer China when the weekly USDA export sales report is released on Thursday, cotton brokers said Wednesday.
They said net upland cotton sales would range from 100,000 to 160,000 running bales (RBs, 500-lbs each), down from sales last week of 166,000 RBs.
"With China on holiday, I just don't see how we get a higher figure on sales," said a trading house broker in the US Southeast.
China started celebrated the Lunar New Year on January 22 and the festivities lasted until Wednesday. Most cotton players will only return to their desks on Thursday, analysts said.
China's heavy purchases of cotton last year propelled cotton prices to their highest level since late 1995.
As of the last USDA export sales report, China has bought 3.262 million RBs of cotton, against 658,100 RBs at this time last year, according to figures from the USDA.
On the other hand, cotton shipments of previously booked orders are expected to remain strong and should range from 300,000 to 350,000 RBs. Last week, cotton shipments hit a marketing year peak of 354,600 RBs.
US cotton exports are forecast to hit a record 13.2 million (480-lb) bales in the 2003/04 marketing year (August/July). Sales last year hit a then record 11.9 million bales.
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