Cotton.

Position Monitor

                       '07 crop  '08 crop

Cash-only:                  50%       0%

Hedgers (cash sales):       50%       0%
Futures/Options              0%       0%

GAME PLAN: Hedgers should be ready to increase 2007-crop sales with hedges on signs of extended pressure due to a dollar bottom and/or commodity weakness.

Fundamental analysis

As the "commodity world" and dollar go, so do cotton futures. The corrective pull-back in some of the high-profile commodities along with a bounce in the dollar has stalled speculative buyer interest in cotton for now. Influence from "outside" markets will continue to play a key role in near-term cotton price action.

Daily December Cotton

Trend is choppy.

The 65.00cents mark is resistance again. Contract-high resistance lies at 68.80cents.

Futures violated the uptrend, but stopped at the 50% retracement of the late-summer rally.