The bears continue to run amok in the cotton market as the market sharply retraces to lower levels. Following the sharp rally that topped out at 78 cents for the lead December contract just over a week ago, futures have now fallen for five out of the past six days with the December falling over nine cents from the high made back on August 5th.

The price rally seen in July was driven by speculators piling in on the long side of the market as market technicals and price momentum were bullish, but that positive sentiment has completely reversed now as market fundamentals have not been supportive of the bulls.

Between an extension of government auctions in China, the USDA validating a higher US production estimate, and welcomed precipitation in India and parts of West Texas, the spec.

Bulls have struggled to hang on to a bullish story. Although rains over the weekend in West Texas were disappointing, the forecast for the region continues to look conducive for additional precipitation.