December ’19 cotton futures prices are stair stepping their way down on the charts as most fundamentals in the supply/demand dynamic are still strongly bearish. Ending stocks for 2019/20 were adjusted, now at a 12-year high, and currently weak demand are weighing heavily down on prices. While from a fundamental standpoint, cotton futures still have plenty of reason to be bearish and prices can always go lower, the fact that managed money and traders are so heavily net short that it wouldn’t take much in the way of tangible shift in the supply/demand dynamic to see large short covering action and a price rally. Currently crop conditions are in decline with hot dry weather in Texas and US/China trade tensions might be easing slightly. As stated in my previous article on cotton: Keep a close eye on this market. If production issues become more threatening or headlines on trade talks take a strong positive tone, this could be a great opportunity for patient, well-times bulls.