Cotton traded in a narrow range on light volume of less than 10k contracts. N'10 found support near 83.50 cents as we have been trading in a range mostly between 84/87 cents. The old resistance levels in the previous 8 week range near 84 are now serving as support after we broke out of the range 2 weeks ago. The COT report on page 2 still showed spec longs increasing with commercial shorts rising but that may be starting to change.

Demand remains hand to mouth on dips as most mills are just trying to bridge the gap until they can start buying at the cheaper back month levels for October forward shipment. Equity markets were under attack today as the Goldman Sachs controversy got more serious. Most commodities were in the green today as the USD fell slightly. Expect more sideways trading with spec selling into scale down trade buying.