Cotton futures traded lower for a sixth consecutive session on Monday as the market continued to struggle with a lack of bullish news. March cotton traded 25 points lower to 63.68 cents a pound on Monday, the lowest close since prices posted new contract lows on Nov. 21. Futures had initially rallied overnight but quickly erased gains after the USDA released the latest export sales data.

Last night’s surge could have been a “buy the rumor, sell the fact” situation ahead of the report. U.S. cotton export sales surged to 389,000 bales during the week ending Nov. 6. Volumes rose well above seasonal averages following months of muted sales. Prices rallying from contract lows at the time likely spurred bargain buyers, particularly Vietnam. Thursday’s export sales data will give us an idea if the strong week of buying was developing a trend or just a flash in the pan.

Delayed Commitment of Traders data released on Friday showed that money managers were net buyers of 7,152 cotton contracts during the week ending Oct. 28. Speculative short-covering drove the buying as traders were taking profits on short positions. However, prices trading up to technical resistance the final week of October gave room for the market to resume its downtrend.

The cotton market continues to search for a bottom and may go for a test of the contract low just above 63 cents. A bullish spark is needed to lift prices out of the low 60s, such as lower global plantings.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.