Cotton continues to look for a bottom as we hit 3 month lows on spec selling. Volume was good with over 20k and even with the best export sales report of the season with almost 500k in new sales, we still could not get a fire going under this cotton market. Fundamentally we are certainly doing what we need to do to generate a rally, but the technical picture is still sending out sell signals.
Open interest continues to fall and cert stocks are rising which is taking pressure off the front months. Grains and energy bounced off the lows, but the USD remains in a friendly up pattern. Even though Bernanke was confirmed by the senate by a comfortable margin, the equity markets keep falling lower. We have reached a level where good demand can be found, but we have to stabilize the outside markets before cotton can make a correction.