Cotton Futures started the morning out on an offered note, with some early spec and even commercial selling on the opening, leading to a 30 lower opening.
These levels quickly set the lows for the day, as trade lent a bid to the Dec initially and then onto the March and even July in the options pit, particularly through a spec outfit who became a massive buyer of nearly 3,500 of the July 60 calls for between 100 and 105 points.
As prices firmed through unchanged they ran into some trade resistance, with activity also reverting to a spread only environment with the Dec / March trading heavily between 400 and 410.
Tuesday represents the GSCI index roll, and as previously mentioned this will move the most significant volume and cut the open interest right out of the Dec contract. Prices ended up near unchanged amidst an estimated volume of 17,000.
Weekly loan stocks saw another expected large increase in current crop stocks. For the week some 1.297 million bales entered the loan, whilst 232,000 bales were redeemed. Outstanding loan stocks are now at 4.727 million bales.
The weekly classing report in the US showed a further 1.62 million bales classed, leading to a total season volume of 8.3 million bales, of which 72.2 percent is of tenderable quality.
Little change today, with technically the December contract continuing to build on it's sideways tracking pattern just at the present between 48.00 and 51.00 cents.
Momentum is starting to stabilize in neutral territory a little, whilst trending indicators including both the 9 day EMA and the 50 day SMA are still downward sloping and in the case of the 9 day providing resistance.
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