Cotton traded higher today as the trend remains friendly but is finding more sellers scale up. We are likely building a trading range between 80/85 based K'10. There is an export sales report tomorrow but likely it will be negative and in line with last week near 100k new sales. There is also a USDA S&D report next week which should also have very little changes for current crop. Volume was light today as the specs may be sitting back while open interest has risen to 180k.
Cert stock are still rising as that is the best home for cotton at these levels. New crop acreage is still running near 15% higher than last year and that is the case in all the major growing areas. Cotton can finally compete with other row crops for the first time in several years. With cert stocks growing quickly and new crop acreage estimates rising, the long term scenario for cotton is less bullish.