We therefore don't see how the trade will be able to keep up the selling pressure at this point if speculators decided to throw more money at our market. However, whether speculators will indeed commit to more longs remains to be seen and will to a large degree depend on what outside markets are doing. Even though cotton showed a lot of relative strength today, a further weakening of outside markets and continued strength in the US dollar could hold speculators at bay and kill the current upside momentum. If that were to happen, we could just as easily see a void of buying, which would force values to retreat back down towards 60 cents.
So where do we go from here? In the short term it's a coin toss whether the market will go up or down five cents from here. A few days ago we would have said that there is enough momentum to carry the market through resistance at 65 cents, but with outside markets potentially turning this may no longer be the case. However, whether it is now or later, we believe the market is poised to move higher this season. The statistical picture is supportive, the US crop has issues and macroeconomic factors point to higher asset prices across the board.