Bullish Cotton runs out of steam at $78.22; currently at $78.22 per pound

After closing the previous trading day at $76.51, Cotton is up to $78.22 per pound, which makes for a move of 2.24%/$1.71 today.

United States Fed Chair Powell speech is next today at 06:30 UTC.

Nevertheless, United States Crude Oil Inventories published yesterday at 14:30 UTC came out at -9.60 million, falling short of the -1.76 million projections and continuing its decline from the previous -3.83 million figure.

At the same time, United States 7-Year Note Auction released yesterday at 17:00 UTC with a figure of 3.839, while the previous figure was 3.827. United States Cushing Crude Oil Inventories came out at 1.21 million, while a consensus of analysts was expecting 89,000.

Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Analysis based on the asset volatility indicates that ICE Cotton's lower Bollinger Band® is at $76.29, indicating that the market is oversold and fertile for new buyers.

Overall, the technical outlook suggests ICE Cotton is likely to remain muted for the immediate future, with no clear-cut direction.

This rally in ICE Cotton's price coincides with other Softs as Cocoa gained 2.61% and is now trading at $3,343.

Meanwhile, Coffee closed at $161.4 (down 3.32%). Sugar is down to $22.61, losing 39 cents, after closing at $23 in the preceding trading session.

Furthermore, the market is looking at today at 12:30 UTC data for United States GDP will be released, with an expected decline to 1.4 from the preceding figure of 2.6. United States Initial Jobless Claims projected to decline to 266,000 while previous data was 264,000; data will be released today at 12:30 UTC.

Furthermore, the market is looking at United States Core PCE Price Index (MoM) (May) is expected tomorrow at 12:30 UTC.

The commodity has been trending lower for about a month. Cotton is now trading 37.42% below the significant high of $122.25 it set around 10 months ago.