Cotton was under pressure early as equity markets opened down almost 3% after more profit taking in Asian and European markets overnight. The dip lead to some export demand from mills who continue to cover their open positions for June and July shipment. The scale down trade buying helped support the market and push N'10 back close to unchanged. Volume remains descent as open interest is also rising steadily as specs wait for more guidance.

New crop planting reached 60% and remains friendly but the down side feels limited due to the tight current stocks. Equity markets did manage to bounce back off the lows to close near unchanged as well as the USD coming under pressure late in the day. Obviously, the Euro is looking over done and we should continue to see good support in the DJI under 10k. However, if we keep seeing problems pop up in Europe which is possible, then the chances of further downside in equities and commodities is possible.