Cotton consolidated gains today after hitting 2-year highs yesterday. Outside markets were mixed with stocks falling midday but then rebounding by the close. Export sales were up this week as expected and shipments remained above the target to reach the USDA number as can be seen on page 2. Volume was good again today as we have one trading day left before the K10 FND.

Cotton cert stocks keep rising and after this rally demand has certainly slowed down. The USD is also strong and the spread to N'10 is almost 100 points over full carry so the chances of a strong taker look unlikely. This along with lack of fundamental demand may lead to a short term pull back. However, would not be surprised to see another test of the highs.