Technically, we have broken the double tops in Z'08 and set new highs which is also the case in soybeans which may continue to force cotton higher. After breaking above the old highs set in the recent trading range, we should find stronger upside resistance scale up.
Cert stocks are rising and the specs are near the top of the range in open interest and should be approaching a 30% long position The relative strength index is reaching overbought levels, so we would expect a firm close in H'08 on Friday but possibly some weakness in the back months as we go into delivery.
marketing@alchempro.com
