Softs

Will Cotton Recover?

Posted 01/22/2020 9:14AM CTEric Scoles

Mar ’20 Cotton futures started the session down further today but have rapidly recovered and have re-entered the previous consolidation range. It would be a strong bullish indicator on the charts if after having taken out the previous lows the market closes in positive. There appears to be firm resistance and a possible top around the 71.36. Cotton is noted as being economically sensitive product and right now Asian demand is a significant factor. Yesterday’s price drop is likely tied to news of the corona virus outbreak reported out of China which could be a threat to demand and speculative risk mentality if it is not quickly contained. There is a lot of support for cotton as demand is still strong but there needs to be confirmation of purchases out of China to really drive this market higher.

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.