Cotton futures started out being called around 20 lower this morning, reflecting a general lack of export activity overnight and in recent times generally.
Yesterday's technical inability to advanced also weighed on prices today, and this was notable as prices gapped lower on the opening, moving around 50 lower before attempting a short covering and gap—filling rally after the re-opening.
There was too much commercial selling around the unchanged level, albeit in very light activity, for prices to advance much further and the session turned negative again with prices slowly eroding over the duration.
March was fairly well supported ahead of 52.00 cents, with scale down mill fixations in particularly around the 52.30 level.
For the rest of the session it was a slow grind, with March tracking around 52.40-52.50, eventually settling with losses of 52 compared to 49 and 42 in the May and July contracts respectively. Otherwise it was not a very impressive session in any way, shape of form, with just 9,300 lots estimated to have traded.
Last evening's 317 notices took the total to 1,403 lots and continued the confusion as Term Commodities ( A'berg ) were both issuers of 200 lots and stoppers of 143. Perhaps this indicates that a lot of the delivered lots to date have been of undesirable nature and price.
March failed to continue recent momentum today, having been unable to penetrate resistance at 53.00 cents. We are again favoring a medium term range between the 51.00 and the 54.00 levels, and until either of these can give way, there will be little volatility and as a result little interest in the price behavior of March.
marketing@alchempro.com
