December Cotton was sharply lower Wednesday amid a wide trading range of 200 points. With weekly sales and exports due Thursday, followed by a three-day holiday weekend, traders were obviously positioning themselves for those two events.
Last week sales were 188,000 bales, while and shipments totaled 157,500 bales. It will be interesting to see what participation, if any, will emerge from China and/or Turkey.
The Market performed some sort of “reversal day”. That is, it initially took out its August 21 high, before promptly falling. Such bearish action continues to undermine many priced-based technical indicators. With a massive speculative long position, the market is in jeopardy of potentially experiencing long liquidation.
Wednesday’s estimated volume was 16,200 contracts.
December cotton settled 8276, down 82, March 19 was 8321, off 64, and December 19 finished at 7817, up 43 points.