| 
April 06, 2023
A quick look at today: the Cotton future went up to $83.23 per pound today, gaining 2.66%.
On the flip side, highly important Initial Jobless Claims data from United States beat analyst expectations of 200,000 with a reading of 228,000. United States Crude Oil Inventories fell short of the -2.33 million projections, with new data of -3.74 million.
At the same time, United States ISM Non-Manufacturing PMI (Mar) released yesterday at 14:00 UTC with a figure of 51.2, while the previous figure was 55.1.
Cotton made an initial breakout above its 21 day Simple Moving Average at $82.93, a potential indicator of a newly emerging bullish phase. Price action remains constrained around the key Fibonacci level of $82 currently serving as resistance In contrast, Bollinger Band® analysis indicates that current price action is approaching the upper band at $86.36, thereby suggesting that Cotton is becoming overvalued. ICE Cotton price action is currently oscillating around the $82.07 resistance level with prices moving above and below several times during the session.
Overall, looking at the technical analysis landscape, it seems the Cotton future likely to continue pointing upward in the short term.
This rally in ICE Cotton's price coincides with other Softs as notably, Sugar rose 2.93% today and closed at $22.55. Coffee increases 1.84% today and closed at $179.
While the Cotton future is higher so far today, these Softs commodities are underperforming: after ending today's session at $2,877, Cocoa lost $15 and is trading around $2,862.
Also worthy of note, projections for United States Non Farm Payrolls are set for a continuation of decline with 239,000 while previous data was 311,000; data will be released tomorrow at 12:30 UTC.
Furthermore, the market is looking at United States Unemployment Rate is expected tomorrow at 12:30 UTC.
The commodity has been trending lower for about 3 months. ICE Cotton is now trading 47.66% below the significant high of $154.89 it set around 11 months ago.
