The weaker U.S. dollar provided support to most commodities, including cotton. The December contract closed 0.67 higher while the March was up 0.33.
The December contract extended its minor (short-term) uptrend, moving past technical price resistance at 86.31 and setting the stage for a possible test of the 87.07 to 87.39 range. Much will depend on the reaction to the July round of USDA supply and demand numbers though the general consensus seems to be that domestic ending stocks will be reduced.
Support throughout WednesdayΆs session came from the sharp sell-off in the U.S. dollar index, sparking buying in most commodity markets.
The inverse in the December to March futures spread strengthened once again, closing just short of the 1.25 cents per pound level. The recent high is 1.74 with support in the spread at the recent low of 0.78.