Bargain buying finally returned to cotton futures today, allowing for a modest rebound. It was particularly encouraging because it occurred despite a resumption of the bear market in crude oil; normally bearish for cotton because it implies even more competition from synthetic fibers.
There are reports that many mills have let stocks get dangerously low as prices declined and they saw no reason to book needs. But now they really do need the cotton just has harvest is in its final stages and farmer selling subsides.
Even China’s cotton futures markets saw gains despite the growing pessimism over economic indicators for that country.
