DTN Closing Cotton Commentary
Tue Mar 12, 2013 03:04 PM CDT

May cotton futures started moving higher in the wee hours of the morning Tuesday and continued on that path throughout the day session, closing at 87.33, up .61 and .41 cents off the day's high. Noncommercials were modest buyers. The July contract traded in a similar pattern, closing up .67 at 88.16, just .33 cents off the day's high.

The nearby May-to-July spread widened from .77 to .83 contango, indicating light commercial selling and a continued bearish commercial outlook. The backwardation in the December to March 2014 spread strengthened from 0.58 to 0.87. A strengthening backwardation implies commercials are becoming ...

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