Gradual recovery witnessed
COTTON continues to perform well with the Dec contract gaining 153 points overnight to settle at 74.83.
Since a week ago, cotton has been gradually recovering following the USDA S/D report and is now only about 100 points from the pre report close.
However the entire commodity complex was higher overnight causing some commentators to propose that the buying came from managed money.
The CRB Index was up 129 points with gains across a broad number of markets with orange juice beating cotton as the top performer of the day.
After the close, the USDA crop conditions showed cotton backing up a bit after showing a slight improvement last week.
As for cotton specific news, traders continue to mention light demand and fixation activity in the market but still struggle to term it as "good" demand.
Cotton's support was also thought to have sprung from new tropical weather concerns in the Atlantic as crops begin to mature in the S.E. US to the point where rainfall may not be nearly as welcome in the near future.
