Cotton comment
JULY prices fell after a dramatic four day rise.
After a higher opening, July turned lower once Tuesday's open interest data was released, showing a decline of 8267 contracts from 17,222.
Commentators note that this was interpreted as showing that the longs were letting shorts out of a tight situation.
July promptly dropped to the 5.00¢ limit-down.
New crop prices were under pressure from the outset.
Dec settled about mid-range at 72.71, down 1.72, after being down as much as 3.37¢, by 11am.
Trading volume and options activity subsided.
Mill inquiry remains quiet.
The CCIndex was unchanged at 18,325, after sliding for 35 consecutive days, amounting to a total loss of 1026 yuan since the beginning of May.
India: The monsoon remains stalled owing to an outside El Niño influence.
It is expected to resume closer to July 1.
China: Cotlook reports that seedling growth in Xinjiang, China's key cotton region is considered to be better than last year, though progress in southern parts of Xinjiang is better than in northern areas, despite hurricane damage.
The estimated area under cotton across the autonomous region, is estimated to have fallen slightly from the area planted last season.
Overnight, outside commodity markets finished mostly lower except grains with the CRB Index down 1.5%, the USD is up and the Dow was lower.
