Cotton traded again today in a narrow range, but volume was good at above 30k contracts. Equities and commodities bounced back after a correction yesterday. The Fed announcement was in line with expectations as they kept the discount rate unchanged at basically zero where it has been since December '08. Inflation fears remain low as the economy is still on the defensive where jobs and housing are still a long way from getting back to normal.

The chart on page 2 shows the path of the N'10 and how we have been in an upside trend channel for quite a while now. At the moment we are at the top of the range and have plenty of room for a correction without violating the channel. Export sales tomorrow should be average as the major importers of U.S. cotton have been mostly quiet over the last several days. For now expect some sideways trading with possibly some down side testing if specs start taking profits.