Cotton traded quietly, though light noncommercial buying in the December contract provided support. The December was up 0.30 while March was up 0.31.
The new-crop December contract posted a quiet rally Monday with just under 10,300 contracts trading. This is a slight uptick from what was seen around last weekΆs holiday, but remains a relatively low level of activity. Nevertheless, the continued rally in the Dec contract reflects the early stages of a minor (short-term) uptrend that could eventually lead to a test of its previous high of 89.56 cents per pound.
Support continues to come from commercial traders as well, though this group did sit out the latter stages of MondayΆs session. The inverse in the December to March futures spread remains strong at 1.09 cents per pound, hinting at continued concern over supplies later in the 2013-2014 marketing year.