Cotton traded in a narrow range lower today on good volume. The equity and commodity markets in general are in a bearish trend at the moment. We have gone from a buy dips and move higher mentality to selling rallies and moving lower. There is support technically at the 68.50 level, and tomorrows export sales report should show good selling last week as we have seen demand scale down.

Cert stocks are now approaching 500k and spreads have moved back out close to full carry to K'09. We still have options expiration to get through next Friday so expect the market to consolidate at the 69 level short term but may see lower levels going into expiration. This should drag the K'09 below 70 cents as the specs wait for more direction in the outside markets which are struggling at the moment.