Cotton continues to trade sideways in the same range it has been trading since March 1st. However, after so many weeks the moving averages are close to crossing lower and this could send more sell signals to specs who were long 12.5% last week. Demand was good when the market dipped last week and sales should be better than last week.

New crop planting conditions are great in West Texas after another dose of rain moved through last week. Cert stocks continue to rise quickly as we approach the 1 million bale mark. K'10 had 25k in open interest as of this morning and the spread
remains above full carry. How eventful the delivery is for K'10 will determine the direction in the short term. If there is a strong taker similar to the H'10 expiration then we should test the highs of the range but if not we could see a break into the mid 70's.