Easing cotton market seems to be the trend

THE market was again weaker overnight, for the third consecutive lower close this week despite a better than expected US Export Sales and Shipment report.

The report showed net upland sales of 266,000 RBs well above last week's 96,800 RBs.

By the end of the day, December settled at 69.26 down 57, while March settled at 70.34 down 73.

Overnight marked the second day of the five-day S&P GSCI roll period.

Spread volume in the December/March was estimated at 14,784 spreads including TAS orders, with nearly 4000 of those trading in the last five minutes of the session.

Futures volume was estimated at a hefty 55,585 contracts, up from the previous day's cleared volume of 35,627.

Tonight the November S/D report will be released early and December options will expire at the end of the day.

In the WASDE report, traders seem to be expecting another slight increase in US production and maybe some historical revisions to India.

There was also some reports of small flood damage in southern India from the recent storm but otherwise crops seem to have been holding their own.

Topics:  namoi cotton

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