Last night market closed at 57.85 cts/lbs on the nearby July contract, 57.76 on the December contract and 58.08 on the December 2021 contract, a week on week increase of 6% for and a four week change of 10% in the July contract.
The drivers were new Chinese sales, partial liquidation of the speculative short position and higher than usual correlation between the ICE cotton market and the stock market in the US, which has increased materially in the last four weeks.
Without new Chinese sales -in the very short term- the market could trend lower by 2 to 3 cts/lbs with the July contract doing most of the work between now and the contract First Notice Day in June 24.
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