ICE cotton is recovering from the correction last week, although the May contract was capped under 82 cents today. Market traded up and down on Monday but eventually pushed higher on the close to settle with modest gains. Follow through buying came in the market Tuesday morning as dollar was struggling and the general commodity market was higher across the board. Today is the last notice day for March contract, and a total of just over 5k lots of notices have been issued, which accounted for the majority of the March open interest on the first notice day.
Market reacted to the Fed’s announcement of unchanged interest rate with just small gains on the equity market. Fundamentally we are expecting gaps between supply and demand and hand to mouth buying from mills is supporting the market. The USDA planting estimate to be released end of this month could give us some clue to the uncertain outlook of the next crop. Technically we could be range bound trading and a close under 80 cents is needed to negate the bull trend.