It’s all about cotton this morning, trading at limit up at one stage it took all the interest away from the grains which trended lower apart from soybeans which managed a very mediocre close higher.
Cotton was sitting at the highest the New York contract has seen for a nearby since June 2014 but it failed to hold those gains and fell from the lofty 87.18c/p to close at 85.32, +3.8% for the day and +11.5% for the last three sessions. Outer month contracts although firmer closed at 75.06c/p, later months are under pressure from what most expect to be a much larger US crop in 2017.

Wheat, the abandoned step child of grains at present, left in a blizzard earlier this month only to be shunned once let back inside continued to walk towards the broom closet it seems destined to spend the night in. The down turn in wheat did go against the trend in fundamentals though. US weekly exports were good, better than expected at 691kt. Talk of lower than desired quality as US wheat matures in a marshy environment also has a few punters happy to talk prices up but I think that the funds might have this market right where they want it after quietly clearing much of their short position in wheat over the last week or so.
Paris, -€2.00/t, and London, -₤0.90/t, wheat were also softer overnight, rains in Europe are expected to help wheat finish there.