US cotton inches up on lower planting view
March 28 (Reuters) -ICE cotton futures ticked higher on Thursday, aided by federal reports that showed lower-than-expected U.S. planting estimates and firm export sales for the natural fibre.
* Cotton contract for May CTc1 rose 0.34 cents, or 0.4%, to 91.11 cents per lb by 12:54 p.m. ET (1654 GMT). Prices were down more than 10% for the month but were on track to post a quarterly rise.
* The U.S. Department of Agriculture's (USDA) planting intentions said U.S. cotton planted area for 2024 is estimated at 10.7 million acres, below trade estimates of 10.9 million acres. However, the 2024 estimate was up 4% from last year.
* The report added that compared with last year, acreage increases are expected in most cotton-estimating States, except Georgia, Kansas, New Mexico, Texas, and Virginia. Texas and Georgia, the largest cotton-producing States, are both expecting a 1% decrease in area planted to all cotton.
* "Many merchants were anticipating a much larger acre number, so that has helped prices to pop up. The export sales report also showed decent shipment numbers," said Jim Nunn, owner of Tennessee-based cotton brokerage Nunn Cotton.
* Meanwhile, the USDA's weekly export sales report showed net sales of 98,200 running bales (RB) for 2023/2024, up 8% from the previous week and 46% from the prior 4-week average. EXP/COT
* "I do think China will continue to be a key buyer of U.S. cotton, but we may lose some business to Australia," Nunn added.
* U.S. private forecaster AccuWeather expects an above-average 2024 Atlantic hurricane season with a near-record number of storms and a greater-than-usual risk of direct impacts in parts of Florida, Texas and the Carolinas, it said on Wednesday.
* Oil prices rose by more than $1 a barrel after falling for two consecutive sessions. Higher oil prices make cotton-substitute polyester more expensive. O/R
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Tasim Zahid
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