Cotton futures slid further lower Tuesday on technical selling. After hitting a 2 year high on April 26th, July futures broke through the support at 83 cents and traded at a fresh two week low. Mill fixations coming in at the intra day low provided some support for the market. Market stalled before taking another dive to the downside on the close. The final settlement was posted at nearly 200 points lower for the July contract.

After a positive performance Monday, Dow closed much lower with over 200 points in loss. Concerns over European debt spiked the dollar against the euro, which sent the commodity complex plunging. We should see mills come back into the market scale down but cert stocks remain over 1 mb's and most mills are starting to be covered through July /Aug shipment. The next support lies around 81 cents, and a bounce off 83 cents basis N0 is needed for a recovery.