Cotton slid lower today as the spec hedge report confirmed that specs are liquidating long positions as they fell last week from 19.2% to 18% long. After breaking through the 83.50 level, cotton closed weak on more spec selling as the market comes off the 2-year highs we hit on April 26th. Volume was light again today as demand continues to struggle.
We should see mills come back into the market scale down but cert stocks remain over 1 mb's and most mills are starting to be covered through July /Aug shipment. Equity markets performed well after some confidence came back into financials based on some positive comments from Buffett. However, the USD remains in an uptrend channel as shown on page 3 which will continue to weigh on the commodity complex as we move into the growing season for the Northern Hem.