Cotton closed synthetically higher than limit up on a combination of reasons that had been building over the last 2-week correction. Decerts started Monday and have been steady every day with another 57k today bringing the total to almost 200k this week. The roll is in full swing as volume today reached almost 40k. Technically, we were looking oversold and the market found good support and probably some panic trade covering which fueled the rally.

We have a USDA report tomorrow that is not expected to have any major changes and the export sales which should be in line with the 4-week avg. There has been good fundamental demand along with very tight stocks which justified this move higher today. We do have an option expiration on Friday and there is a great deal of options still open at the 80 cent strike. A 4 cent limit kicks in tomorrow so will have to wait and see if the fireworks continue after we closed synthetically abt 80 points higher today at 82.12.