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Cotton has now closed higher five out of the last seven sessions; the last three have been consecutive higher closes. There appears to be a few bullish factors in the current market. Firstly, the cert stocks are on the decline. Secondly, solid weekly US Export Sales figures are over and above the required amount needed to reach the current USDA estimate. Thirdly, there are fresh rumours suggesting that the Chinese may revise the tariff rate on cotton imports. However, details surrounding this rumour are lacking. Physical demand has softened with the recent futures rally. The March contract has seen open interest decline two days in a row, this suggesting that short covering may be pushing the market higher. There appears to be many supporting factors in this market; however the fundamental backing appears well below current levels.