Cotton bounced back today like most of the commodity and equity markets following the bale out package announced by the Euro zone. The combination of available funds reached almost 1 trillion in USD and is designed to prop up the southern Euro countries including Greece which are in need of debt restructuring. Volume was below average today as open interest continues to fall.

The Spec long position fell as expected last week from 18 to 14% long. Tomorrow will be the first estimates of new crop as we get a look a the first official USDA numbers for 10/11. Cotton remains range bound for now as we see good support near 80 and scale up selling above 82. Cert stocks continue to grow and this will keep upside pressure on cotton prices in the short term. New crop plantings remain on track without any serious threats for now.