USA : Market rally to help cotton fight for crop acreage

NYF Thursday session steadily traded higher within a range of nearly 200 points. Based on zero fundamental news in cotton, market rallied supported by overall strong commodities market. Overnight grains market was seen higher. Crude oil made its record high due to further tensions between Turkey and Kurdish rebels in Northern Iraq.
Dow Jones retreated after Bank of America released its earnings figures, which are severely below public expectations. This is further proof of how credit crisis can affect the economy, followed by other financial companies releasing similar disappointing earnings reports.
However, stocks held up strong despite of the negative news. NYF session closed at the high with the December contract up 174 points and March contract up 161 points. This morning’s US export report was of little impact to today’s market.
New sales were lightly improved from the week before with 168,800 running bales upland and pima combined. The major buyer was Turkey with 58,200 bales. Shipments were 251,900 running bales combined. China was unsurprisingly the largest destination with 106,500 bales leaving for the week.
Technically, December contract has broken out of recent sideway trading pattern and is looking positive. Fundamentally, there is still no news pushing the market movement. The market rally was supported by the overall strong commodities performance and is trying to help cotton fight for crop acreage.
Session closedat today’s high and follow through technical buying is expected tomorrow from the funds. December contract is trading at the resistance level and will be challenging the 65.44 level set by Oct 1’s session.