Cotton prices traded in a narrow range on good volume of over 20k futures. There was good spec selling into scale down trade buying as the market hit 12 week lows. The USD is still strong after some weakness in Asia and Europe overnight. The DJI managed to close unchanged but there is till quite a bit of uncertainty about housing and jobs going forward.

Demand has softened and we are seeing many mills rolling down GTC orders to fix on call sales. There is a change in momentum that carried us for the last 9 months of 2009 which seems to be coming to an end. If that is the case, we should see a friendly USD and further weakness in commodities and equities going forward or until there is a significant change in demand.