Cotton futures were initially called to open around 50 higher as reportedly there was some solid hedge fund buying on the opening. Much of this buying was immediately absorbed by commercial selling.
Despite the AWP being officially raised to 45.05 this week, the 55.00 and higher level is very attractive for US co-operatives to hedge and redeem equities out of the US loan.
As such the market opened around 10 higher, and much to everyone's chagrin, it quickly settled into a slow and dull sideways range for the next 3 hours between 55.15 and 55.30 basis March.
Talk about a sleeper. Many in the floor left early to get started on their Christmas shopping. Late in the session we actually saw some volatility as commercial selling became a little impatient and chased prices lower into the close, with March closing below the 55.00 support.
Still for the week the March contract has managed to gain nearly 220 points, which is a major boon for the bulls who have been under the pump all year long.
Estimated volume today was 11,966 lots, however most of this took place around the opening and closing 15 minutes.
CCC loan stocks for the week saw a further 1.642 million bales entering the loan, with 14,200 old crop bales being redeemed and 474,000 current crop bales redeeming.
As of December 12th the CFTC report the futures and options spec position as 1.4 percent net short. Futures only the specs are still 8.6z percent net short.
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