Mar ’20 cotton prices jump up this with the return of risk on and strong equities. The global attitude towards the Coronavirus has seemingly turned form concern to indifference as the spread of the virus outside of China has been limited by rapid response and containment. There is even talk of progress on treatment and vaccines. The fact that China has gone to great lengths to cushion the economic impact of the outbreak by pumping over $200 billion into the economy and working to lower interest rates. Cotton being an economically sensitive market with a great deal of demand coming out of Asia should see solid gains based on this but there will likely be a cap on cotton prices as the longer-term demand and big picture impact of the viral outbreak is still to be determined.

Cotton Mar ’20 Daily Chart

Eric Scoles

Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.