Weekend cotton export business attributed to early highs
10 Apr '07
3 min read
At this time we can imagine few if any changes to the US numbers, currently at 21.73 Million bales production, 5.0 consumption, 14.0 Exports and 8.8 carry out stocks. Globally there could be some jockeying in the Indian and Pakistan numbers, along with a possible cut to Chinese consumption.
Last week's consolidation led to a real collapse, led mostly by the bear spreading between May and July. Crashing through last week's lows, there was little to hold the May up, and it appears that it now has the contracts lows at 51.40 in the crosshairs. Moving averages are both trending lower, with the 9 day now at 53.02 and the 50 day at 53.58.
Today's action negates a lot of the sideways consolidation work, and we can now expect a real challenge at these contract lows. Momentum quickly turned negative, with the RSI dropping to 33.60.