Cotton got a boost today with help from outside markets as well as a big decert report over 70k bales. We are now back below 1 million bales with a decreasing amount awaiting review. We certainly expected to see the cert stocks come under pressure with the lack of high grades available in the U.S. Volume remained strong again today as the roll to Z'10 is in full swing.
We have a USDA S&D report on Thursday but do not expect any huge swings this early in the season. Over 90% is planted and over 60% is good to excellent and off to a great start. There is still plenty of time to kill the crop over several times before harvest, but for now Z'10 held up well under 75 and looks like it may want to consolidate some of this correction at this level. Expect some sideways trading as we wait for N'10 to expire starting with options next week.