Cotton traded lower today as the technical pattern is moving sideways and forming a flag. This could be bearish since we have seen the trade volume come down and fundamental demand has been weak. Export sales today were in line near 130k as the business is very limited with NY at these levels. China is still coming back from holiday but local cotton can compete with imports at these levels.
The USD bounced and commodities fizzled for the most part across the board. Grains really took a hit as energy and metals also fell lower. Equity markets are awaiting the unemployment report tomorrow but jobless claims were better than expected today. Overall, the market is still showing overbought signals and could be ready for a deeper correction. However, in the short term expect more sideways range trading between 81/84.