Does Cotton just go up EVERY day now??? Any thoughts, the commercials haven't been this short in a long time. Is it running right now on the fumes of trend following funds? Or is there fundamentals behind it?
seems technical with commercials overly short and perhaps weather driven with the southeast in drought. the buy with cotton around 47-50 was more obvious than it is now at least to me from a fundamental perspective. cotton was coming off loan at a brisk pace and export business was suspect as prices were signficantly cheaper than interior px's in china. up here, i'm not so sure. but shorts are getting squeezed as more physical business develops more short hedges need to get lifted and up we go. regrettably i purchased a DEC 54/58 call spread for 140 pts and sold way early, circa 56.5 on DEC .
It's possible that soybeans are "dragging" cotton higher in order to keep the acreage values similar for the 2008 crop.