THE market continues to drive higher and futures are up more than 12% in the first two months of the year.
Even with the surge in the US dollar last week and some uncertainty on the global economy, the market has been able to attract more speculative buying as export sale news remains strong in spite of the recent jump in prices.
US cotton exports are likely to be revised higher in the supply/demand update for Friday and this could cause lower ending stocks for the 2012/13 season.
There is no sign of a peak and it may take a slowdown in exports or news that China is pulling stocks from their massive reserves in order to put in a high.
Rising deliverable supply does not seem to have much influence.
As long as the global economy grows and China avoids using their own stocks, the market may continue to avoid addressing surging US deliverable stocks and massive global stocks.
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