Cotton futures finished lower on Wednesday, the third consecutive day where the market ended in the red.

Following TuesdayΆs limit-down move, the market gapped down on the open and spent the entire session in negative territory.

The lead December contract ended at 71.44 USC, with cumulative losses of 530 points over the past three days.

Rains across West Texas on Monday seemed to be the catalyst that sent the bulls running for the exit, which was compounded by the significant speculative long position that had built up on one side of the market.

With bullish price momentum fading, market technicals taking a decided turn lower, and further rains in the forecast for West Texas, the bears in the market look to be gaining momentum.

The USDA will release its August WASDE report on Friday morning in the US, with production estimates for India and the US likely taking the spotlight.