NEW YORK, Nov 21: Cotton brokers said on Wednesday that US cotton exports in the weekly USDA export sales data will likely remain strong, but will not match the marketing year peak seen last week.

The brokers told Reuters new upland sales should range from 190,000 to 230,000 (480-lb) bales, which they said is a strong level, although sharply off from the marketing year peak of 479,000 bales reported by the USDA for the week ending Nov. 8.

USDA will release its weekly export sales data on Friday at 0830 EST (1330 GMT). It normally releases the report on Thursday but cannot do so because of the Thanksgiving holiday here.

Business has been very brisk since we bottomed, so the numbers on this weeks’ report should still be very, very good as virtually everyone rushed to extend their coverage, added Mike Stevens of Swiss Financial Services in Mandeville, Louisiana.

Analysts said industry operators will be closely watching the breakdown of the sales data, especially if countries like Pakistan or India purchases large amounts of cotton despite the supposedly large cotton crops in both South Asian nations.

Brokers said improvements in the Step 2 marketing program administered by the USDA to spur US cotton exports should likewise boost cotton shipments.

They said shipments should range from 170,000 to 200,000 bales, against last week’s level of 156,600 bales.

NY cotton futures finished mixed on Tuesday in a session whose only feature was spread activity as players scampered out of spot December before first notice day next week.

The spreads and switches were extremely active, said Mike Stevens of Swiss Financial Services in Mandeville, Louisiana.

Players were seeking to exit December prior to first notice day on Monday since the market will be closed Thursday and Friday for Thanksgiving. Trading resumes next Monday.

Spot December cotton fell 0.27 cent to end at 33.82 cents a lb, trading 33.60-34.20 cents. Active March shed 0.13 cent to end at 35.85 cents, hovering from 35.60-36.15 cents.

Distant months ranged from 0.05 cent easier to 0.30 cent firmer.

Floor sources said little outright business was done, with Dec/March switches the only game in the market.

I didn’t see a lot of outrights. It was largely spreads, a broker said.

Open interest in December slid 2,216 lots as of Nov. 19 to stand at 10,067 lots while interest in March went up 1,020 lots to 26,134 lots.

Analysts said the market’s focus will turn anew to fundamentals once switch activity is done. Cotton prices sank last month to near 30-year lows due to abundant supplies, soft demand and a recession induced by the September attacks on New York and outside Washington.

Prices have recovered somewhat since in a shortcovering rally in the market which hoisted December up some 700 points from its lifetime low of 28.20 cents.

Brokers STA Trading Services in Memphis, Tennessee said support in December would be at 33.50 cents while resistance is seen at 34.50 and 35 cents.

As to March, it pegged resistance at the session peak of 36.15 cents while support would be at 35.65 cents.

Estimated volume reached 9,000 lots against the previous tally of 10,087 lots.—Reuters