After closing the previous trading day at $80.92, ICE Cotton went up to $82.82 only to drop back; still positive overall today, now trading at $81.86 per pound.
United States FOMC Meeting Minutes is next today at 19:00 UTC.
Meanwhile, United States Existing Home Sales (Jan) released yesterday at 15:00 UTC with a figure of 4 million, while the previous figure was 4 million. United States 2-Year Note Auction came out at 4.673. United States Existing Home Sales released earlier showed a marked improvement to -0.7% from the preceding data of -2.2%, but fell short of the 2% figure forecast by a consensus of market analysts.
Cotton made an initial breakout above its 3 day Simple Moving Average at $82.57, a potential indicator of a newly emerging bullish phase. Cotton's lower Bollinger Band® is at $81.63, indicating that the market is oversold and fertile for new buyers. Despite this, Cotton could be slowing down soon; it is getting close to the resistance line and is now at $82.87, only $1 away. Crossing the resistance line could, however, suggest that further gains are ahead.
Cotton continues to move higher with technical analysis indicating the trend will continue in the short term.
Though the Cotton future is going up, other Softs are underperforming — Sugar closed at $20 (down 6.19%).
Furthermore, the market is looking at United States Crude Oil Inventories expected to decline to 1.17 million while its preceding data was 16.28 million, data will be available tomorrow at 16:00 UTC. United States Initial Jobless Claims projected to come out at 200,000 — worse than previous data of 194,000; data will be released tomorrow at 13:30 UTC.
The market is looking forward to the release of new data: United States GDP figure is projected at 2.9. It previously stood at 2.9; data will be released tomorrow at 13:30 UTC.
The commodity has been trending lower for about 2 months. Over the past 9 months, the Cotton future has retreated 47.76% from a noteworthy peak of $154.89.