Cotton followed through on ThursdayΆs breakout Friday, though contracts werenΆt able to hold near session highs at the close.

Comments:

December cotton posted a strong rally early Friday on follow-through buying from ThursdayΆs technical breakout. However, after posting a high of 77.98 (recall that the upside technical target was 78.50) renewed commercial selling was uncovered. This led to December losing ground to March for the balance of the session, the spread closing back in a small carry.

For the week the December contract gained 2.70 while the March rallied 3.06. Noncommercial buying provided support for much of the week, with FridayΆs CFTC Commitments of Traders report showing this group holding a net-long futures position of 81,441 contracts (as of Tuesday, August 2), up 5,558 contracts from the previous week.

General Comments:

December cotton gained 0.91 to close at 76.74 while March rallied 1.07 to 76.97. December corn finished 3 1/4 cents higher as November soybeans gained 17 3/4 cents and September Chicago wheat rallied 12 3/4 cents for the day.

The U.S. dollar index was 0.463 higher at 96.221. December gold was $25.50 lower at $1,341.90 while September silver fell $0.698 and September copper lost $0.0150. The Dow Jones Industrial Average was 177 points higher at 18,529. September crude oil was $0.04 lower at $41.89. The September distillates (heating oil) contract lost $.0084 while September RBOB gasoline rallied $.0043 and September natural gas was $0.077 lower.