Rumours of fresh cotton exports to China continue

COTTON volumes have dipped as the bulk of the index rolling has been completed, but prices and the Dec/March spread found support.

The Dec closed up 82 points to settle at 71.63 and the next most active month, now March, closed up 65 at 71.26.

Trading volume fell to a cleared volume of 26,883.

Open interest in Dec following the last day of the S&P GSCI roll period declined by 10,143 contracts to 42,707.

There are just six trading days left before notice period.

Despite the rising balance sheet, the market currently appears unable to move lower.

Support in the 70 cents area has held the market and grower selling in the mid to high 70s has contained the rally.

Analysts expect this stalemate between growers and mills to continue until a meaningful change in the balance sheet.

There are continued rumours of fresh export sales to China and other destinations as well.

Traders are also looking for another solid US export sales report reflecting sales last week and during the ICA meetings.

Meanwhile pessimism continues within the Euro zone's textile and apparel industry sector where production is expected to continue to fade.

If so, production will fall to its lowest level in over two decades.

Topics:  commodities cotton markets namoi cotton

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