The H'07/K'07 spread continues to narrow as there is some concern that large decerts still remain, but if that happens there should be plenty of willing parties to deliver tenderable new crop cotton on the H'07 contract.
For the most part we seem to remain stuck in a short term range between 54.00 and 56.00 cents as we struggle to redeem cotton, but the more free cotton grows in the U.S. the weaker the market could be long term as we try to find demand and reach the cheap price ideas set by the large importers for U.S. cotton.
marketing@alchempro.com
