Cotton decreased on good volume today as it found support near 70.50. The USD bounced strong overnight based on further concern over tightening monetary policy in China. This also lead to profit taking in equities which had the biggest intra day loss since October'09. Energy, metals and grains continue to lag as the USD finds support. Volume was good with 19k in futures as open interest fell slightly to 177k.

Please see the charts on page 2 of the H'10 and page 3 of the Z'10 as both are showing a lot of weakness technically. There may be further testing of the down side as we wait for more direction in the equity and currency markets. Cert stocks are growing quickly and the volatility is also under pressure so in general there is nothing very friendly to report. Demand is still under the market scale down but not as aggressive as last week.