In a slow news week, strong U.S. export sales data helped alleviate some bearishness in the market, while the lower U.S. dollar reduced losses on the Intercontinental Exchange (ICE) Thursday. However, cotton futures still ended weaker in continued sideways trade.

USDA's export sales figures were better than many in the industry expected. Net U.S. export sales of 137,700 bales in the week ended May 14 were up noticeably from the previous week, but down 11 percent from the prior 4-week average. Major buyers were Thailand, China, Turkey, and Colombia. Net sales of 58,100 bales for delivery in 2009-10 mainly were for Indonesia, Colombia, and South Korea.

Export shipments rebounded sharply to a marketing year high of 441,800 bales. The figure was up 94 percent from the previous week and 50 percent from the prior 4week average. Primary destinations were China, Turkey, Pakistan, and Mexico.

Meanwhile, sales decreased significantly on the spot cotton market. Producers in Texas, Oklahoma, and Kansas sold just 563 bales online in the week ended May 21 compared to 1,699 bales the previous week. The average price received by producers was 52.76 cents per pound, a slight increase from the previous week when prices ranged from 47.10 to 49.58 cents per pound.

"Buyers' pricing ideas have not risen with cotton futures prices which makes them reluctant to increase inventory at this time," a local analyst said. "When you couple the absence of mill buying in the market, less saleable cotton in the hands of producers, and the fact that we're now entering the 'summer doldrums,' it's really no surprise the market is in a holding pattern," he explained.

In other news, both official and anecdotal reports continue to circulate about a decline in China's planted cotton acreage. The latest idea fluttering around the market is that a 12 percent drop in cotton planting will be seen in the country.

"Although the 12 percent figure is less of a decline than the 13.9 percent drop previously absorbed into the market, it doesn't take into account any re-planting efforts that will have to occur if the largest cotton producing area in China hopes to match its predust storm-damaged acreage target," the observer explained.

Cotton producers in many other parts of the world are having difficulties planting their crop. While perhaps not as severe as the problems already plaguing farmers in other northern hemisphere cotton growing, unseasonably cold and wet early-season conditions in Tajikistan also has resulted in some re-planting. In the U.S., with half of the projected cotton crop left to be planted, there still is time for farmers to change over to competing crops. However, switching crops might not be a viable option in some areas of Texas and the optimal time for corn planting has come and gone in the Delta.

According to USDA, the 2009-10 cotton crop was 42 percent planted in the week ended May 17. The figure is up from 32 percent the previous week, but lower than the 53 percent average. Most of Texas continues to be unfavorably dry as only 37 percent of the anticipated crop there has been planted, versus an average of 39 percent. Oklahoma and Kansas have 7 and two percent of their crop in the ground, respectively.