Very strong day across the board for commodities and equities as the strength started on the new opening time last night at 9:30 EST. Grains and cotton closed strong heading into the much anticipated USDA acreage report.
Ironically, cotton came in on the high side of the range at 8.8 million acres, but the rally did not fail as buy stops were hit and the market moved higher into scale up trade selling. The volume was way above average with 36,000 futures and 15,000 options as the specs probably increased their long position into positive territory today.
The AWP for next week is rising but not as quickly so there is good selling pressure over the market at these levels and this should continue. The equity markets and commodities look like they have the technical momentum to carry higher in the short term.
We will more than likely see a slow down in demand at these levels and this will eventually turn the fundamentals more bearish. Technically in the short term, the testing of the highs should continue.
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
