Will Cotton Retest August Highs?

January 5, 2017 12:50PM CST

As we ring in the New Year, the cotton market is ringing in a new wave of buying interest bringing prices in the March contract above the prior consolidation range high.  This renewed strength in price comes amid concern that global demand will continue to dwindle world stocks.  Outside markets have been supportive as well with recent counter-trend weakness in the USD index temporarily taking pressure off commodity prices.  These two themes will continue to affect price action moving forward and traders should continue to monitor the fundamental situation in the cotton market.  Technically, the market remains strong with consistently higher highs pointing to a positive directional trend in prices.  The intermediate term positive bias will likely remain in effect so long as price remains above the 65.85 swing low on a closing basis.  If you’d like to discuss potential trading strategies in the cotton market, I encourage you to contact me directly at +1 312.373.5176 or etatje@rjofutures.com.

 

Cotton Daily

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