We woke up today to some very bullish news out of India and the market reacted accordingly. India's government decided to suspend any further export registrations in order to alleviate the spike in India's domestic cotton prices. This lead to some
panic buying which triggered buy stops and lead to a very good volume trading day with over 40k in contracts. The spec hedge position on page 2 shows that specs are happy to stay long at these levels as they raised their long position to 15.9%.

China remains the big question mark, but they are running out of options after the second largest exporter has now pulled out of the market . Stocks are certainly tight and we may start seeing cert stocks come under pressure as the only source of high grade cotton left in volume. However, at these market levels we will have to see how desperate mills are and if they are willing to pay the high price to take it off the board.