Cotton managed to spike up today and take out 18 month contract highs in H'10. The front month triggered buy stops from specs as the squeeze for the H'10 contract plays out with FND on Monday. Export sales tomorrow are rumored to be on the high side again and strength in equity prices drove the market despite the strong USD. Volume was above average today with over 30k in volume and only 15k left in the H'10 contract.

Equity markets also closed stronger today as they consolidate higher with support from the technical uptrend. Fundamentals should turn more and more bearish as the market moves higher, but for now the H'10 is well supported and should go off the board strong. China is still on vacation and the markets are reaching overbought levels and next week should be a better indication of the longer term direction.