At this point, there are no new fundamental drivers in the market of cotton. The bears are currently dominating the market because the supply bigger than the demand this season.
Despite the fact that next season this gap will narrow, the supply-demand ration will still be positive, thus exceeding the reserves. Even the fever seen before March 30th (plantings report 2012) vanished right after the report without breaking the top of the price range at $94 per bale. This scenario had been anticipated by the Commodity Trading department of , certain trading recommendations had been given.
The USDA’s plantings report 2012 suggests that cotton acres will fall by 1,5M down to 13.155M acres.
Technically, the price has rebounded from the top of the rage ($94). The closest level of support is $90. However, the analysts expect the price to test the bottom of the price range located at $87.
