Cotton remains in a sideways trading range which runs into resistance above 82 cents and finds good support near 80. The outside markets are certainly not helping but cotton has managed to hold firm based on the current tight stock scenario. Chinese local prices are very firm as well and even the announcement of new import quotas have not been enough to dampen prices. Volume was above average today as the fundamentals remain friendly.

Equity markets struggled today as concerns in Europe remain and the USD benefits from the weak Euro. Oil has slid considerably lower in the last 2 weeks due to the strength of the USD and this has also weighed on the commodity complex in general. New crop is in the ground and looking good and we are staring at a 4 cent invert between N'10 and V'10. Cert stocks are rising and specs have room to sell. Demand is hand to mouth so with only 4 weeks until N'10 FND, expect to see more spec selling into scale down trade buying.