Yesterday's strong session raised the open interest by a whopping 3,593 contracts. However, unlike Thursday, performance from other commodities is mixed on Friday, which created less support for the cotton market.
Crude oil touched above $90 a barrel overnight and fell 89 cents after that. Many suspect that the oil price drop is only temporary due to profit taking from investors.
Weaker dollar and concerns of lower oil supplies from northern Iraq might support oil price's further uptrend. Dow Jones fell 220 or 1.50 percent during midmorning trading and closed at 367 points lower. Slight pull back was seen in cotton during early NYF Friday session as ICE trading tested the low at 64.51 level.
Expectations are mixed in the market when traders see selling pressure from profit taking. Market turned direction to test higher in the early afternoon session in light volume when wheat was trading near limit up. December 08 contracts were traded actively on the close creating a new contract high of 75.80, while all contracts closed near today's high.
Technically, Friday session drew another bullish picture continuing yesterday's market movement. December contract tested today's low in early session trading but closed at the high.
Still not much fundamental news is around to trade on, but the recent sideways trading pattern has been broken and the 9 day average is trending up. Session closed at today's high and follow through technical buying is expected next Monday from the funds.
December 07 contract has broken the resistance level of 65.44 set by Oct 1's session.
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