Technically, the chart looks indecisive as to which direction to go as prices flew all over the board during Friday session. Today's 120 point range was at the upper half of the near term trading range between 62.20 and 65.60.
With less than 10 trading days to expiration on December contract options, volatility has come in and settled at 20.50%. As funds started their cover month switches, spreads between December 07 and forward cover months have further widened.
It appears that cotton is a commodity to buy at a relatively lower price. With a record high open interest, it will be interesting to see how far specs are taking their long positions in cotton.
marketing@alchempro.com
