Cotton futures prices fell sharply on Thursday, breaking out of the recent trading range. The export sales data was mixed at best – with a net decline in commitments for this year and sales below the 4-week average for 2014/15. But prices didnΆt drop initially. Cotton growing areas in the Delta and Southeast received some much needed rain on Wednesday, improving the outlook for this yearΆs crop.

In addition the monsoon in India has really picked up, easing some earlier concerns about the crop there. With no real kick from the demand side and U.S. and world production prospects looking up, there were not many buyers in the market on Thursday.

The price break on Thursday caused serious damage to the charts. The December contract had been moving sideways near 68 cents over the last two weeks but prices plunged through resistance and the contract settled at 66.05 cents per pound on Thursday, down 203 points. The September contract settled at 66.40, down 237 points. Once prices fell below the resistance levels, sell stops were triggered and the drop in prices really accelerated. Cash cotton prices are down near 60 cents per pound.