Grains were down slightly overnight as well as metals and energy but eventually broke higher as cotton tested the 64.00 cent level. The spreads came in on the close yesterday which slowed down the volume of trading on the floor and kept the market pegged to a narrow range.
The stock market eventually sold off on some more concerns in the housing market having long term effects on consumer spending. Wednesday session was choppy with light volume and narrow trading range. Estimated volume was 8,383 on ICE and 2,263 on the floor for the futures and 10,436 contracts for the options combined.
We are not expecting a large export sales report tomorrow as business is spotty with some new sales being reported in Turkey. The stock market and commodities remain stable but seem to have trouble moving higher with concern over the long term health of the U.S. economy.
Technically, cotton tested the 64 cent level, but failed to break through as we continue to trade in a sideways trading range. Open interest is still over 230k with rising cert stocks and a lack of demand.
Unless the market can break through 65.00 or 62.00, we will continue to trade sideways waiting for a break out in either direction. However, the more we fail to the upside leans toward possible further selling from the specs.
Fundamentally no news is pushing the market movement, and tomorrow's export report is expected to have little compact on the cotton market either.
marketing@alchempro.com
