A second straight day of strong buying DESPITE planting having nearly caught up with normal is impressive. It verifies the chart from last night, showing prices have bounced off a 62% “Fibonacci retracement” of the entire bull move from late Fall lows to March highs.

Nonetheless, cotton futures wonΆt actually break their downtrend unless we get a convincing close over 84 in the spot contract. So while catchup sales are no longer advised, weΆre not prepared to advise lifting existing hedges, either. For now, this rebound may be no more than a catch-up selling opportunity once the surge in commercial buying subsides.