The situation in the market of cotton looks rather obscure as Brazil and Australia have increased their production of cotton to a record-high level, which should have released the market tension. Probably the market activity is connected with the forthcoming change of contract as the buyers are concerned about the supply liabilities.
The concerns are caused by the recent USDA report on the US cotton reserves. The final reserves/ consumption data worry the traders most of all. The rally seems to be temporary. However, to clarify the situation it is necessary to wait till the contract is changed.
The Department of Commodity Trading,
