Cotton traded in a very narrow range today on light volume. N'10 is close to expiration and with just over 20k contracts left to liquidate, there does not appear to be a strong stopper. However, under the current tight supply scenario, we can certainly not rule out some surprises before FND on the 24th. Cert stocks dropped slightly and open interest remains roughly unchanged.

Inquiries and new sales have slowed considerably after last weeks run up in NY. Expect new sales this week to be below the previous 4-week avg. near 200k. Mills are running on light stocks but yarn prices are starting to decline and we are entering a period of vacations and specifically the Ramadaan holiday in August that may led to further slow downs in mill use. Expect further consolidation sideways as Z'10 struggles to break 80 cents.