Cotton was under pressure again today as spec liquidation has shed 4% off of cotton prices in the last week. Equity markets bounced back today on the close as they are finding some buyers near the 10k level. Cotton technically is looking vulnerable so we may be seeing some rebalancing of positions by spec and index funds. Volume was strong again today and the cert stocks remain mostly unchanged.

New crop in the U.S. shows 79% planted and 63% good to excellent so no help for the bulls there. Good fundamental demand is out there and sales and fixations are being done at a very good clip. There is starting to be a lack of cotton to offer and it seems only a matter of time before we see cert stocks come under pressure for July/August shipment. Its all about bridging the gap to new crop and if it can be done then the upside feels limited but still a lot of time left on the clock.