A fairly quiet trading session with an estimated 17,201 contracts traded in the futures and 11,392 contracts traded in options combined. Market was called to open a little higher and steadily traded up to test the high at 65.64 electronically.
Due from outside market pressure and trade selling activities, open outcry was then traded in the lower price range for the majority of today's session.
Much of the buying occurred in the last hour prior to settlement and drove the closing price near the high. Overnight Zhengzhou Cotton Futures has seen weaker market and lost major ground in all cover months. West Texas has seen this season's first freeze overnight, a week earlier than usual.
According to historical data, Lubbock area normally experiences its first fall freeze around November 1st. It has been an ideal fall season for this area and the crop is looking positive. This early freeze is also viewed as favorable for most producers.
As temperature is warming up throughout the week, the combination of freeze, dry air and warmer temperature is speeding up the defoliation process. Delta area, on the other hand, has seen continuous showers and thunderstorms.
Another strong close on Tuesday session as market traded within the higher trading range set by the end of last week. The December 07 chart gives no clear indication of in which direction the market is breaking out. Market has fallen into sideways trading pattern and is looking for directions for the week to follow.
Still no news is available for the market to trade on, but the performance of the dollar, of course, has affected the overall commodities market. As value of the dollar has sunk so much, it makes us to wonder when it will hit the low and turn around.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
