Cotton continues to consolidate lower as we slowly uncover demand scale down. We are seeing mills starting to cover for April May shipment on this correction and placing scale down orders to fix on call sales. The fundamentals should continue to strengthen as the market moves lower. Export sales were not exciting today with just over 140k but should start looking better next week.
Volume remains low as cert stocks continue to grow and the market tests the 78.50 level. The board is getting flatter as we are now over 700k cert stocks including the awaiting review. Depending on how this keeps growing and the demand out of China, we may see the market continue to drift lower. Outside markets remain under pressure as the USD is stable and we still have uncertainty about Chinese inflation and the European economy.