Another day of good volume as cotton futures trade higher. Export sales were better than average but shipments fell off to
only 200k. As seen on page 2, we need to stay closer to 300k in shipments each week to reach the 12 million exports level by
the USDA. Demand has slowed down with the bounce in NY so we should remain range bound until K'10 expiration.

Cert stocks are still building nicely and the spread between K/N'10 remains around 150 points or full carry. Do not expect
any fireworks as we approach 1 million bales and we should see the invert start to become smaller going forward. Open interest is drifting lower which is normal as we approach FND. Expect mill activity to increase on dips as we trade sideways
and await direction from outside markets.