As the total open interest dropped less than 5,000 contracts throughout the week, both trades and funds had been orderly liquidating their positions in May, and trades had increased their overall net short positions by 2.5%.
More profit taking selling came in today after the false technical breakout Wednesday and follow through selling yesterday. Supported by the overall weaknesses in commodities, NYF formed another negative candlestick in the technical picture.
The entire session was trading beneath both the short term and long term moving averages and the RSI is at 42%. We'll very likely trade in consolidation ahead of the K'08 first notice day, which falls on Thursday the 24th. Cotton will likely fall in quiet trading next week and between 70 and 72 cents will be a likely range to carry May into notice period.
marketing@alchempro.com
