Cotton pushed higher today as the USD slid lower on negative employment news and improved Chinese economic indicators. Equity markets also pushed higher as the trend higher remains in place. Specs did take some profits last week as the long position fell from 18.2% long to 13.7%. Open interest also fell lower, but cotton today made up for a big chunk of the losses from last week.
The USDA report comes out tomorrow, but we are not expecting any big changes. There was good mill demand on the break last week and that should contribute to a good export sales report this week. Volume was average with 14k in futures and the close above 74 could set us up for a test of the resistance at 76. The USD will remain a factor as cotton looks to consolidate in the current sideways trading range 73/76.