Cotton has become terribly oversold from relentless selling and we may have seen some relief from that today. But it is little more than a dead cat bounce because fundamentals for cotton are overwhelmingly bearish. We agree with others now putting downside risk for the December futures contract into the low 60s. Catch-up advice stands for those not yet at the recommended levels below. It’s tempting to be more aggressive, but only if we can get at least a temporary upward correction since we’re now overdue for that on technical elements alone.
