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June 03, 2023Yesterday at a glance: after finishing Thursday at $82.31, ICE Cotton went up to $87.16 before paring its losses and closing at $86.11 per pound.
This move comes while some more positive signs for Cotton are out as United States Non Farm Payrolls improved upon its previous reading of 294,000 with a new data release of 339,000.
On the flip side, Average Hourly Earnings in United States fell short of market expectations (0.4%) with a reading of 0.3%, continuing the decline from the previous figure of 0.4%. Highly important Unemployment Rate data from United States beat analyst expectations of 3.5 with a reading of 3.7.
Analysis of Cotton's recent price action suggests Cotton's nearest support level is at $82.17. With regards to technical trend indicators, chart analysis show that the MACD index is indicating that momentum is shifting from bearish to bullish following a positive crossover. When the MACD rises above the signal line, it is typically considered to be a bullish development favoring long positions. ICE Cotton formed a session range of $85.5 to $87.16 leaving buyers and sellers highly concentrated around an active Fibonacci resistance level of $86.92. According to asset volatility analysis, Bollinger Band® analysis indicates that current price action is approaching the upper band at $88.41, thereby suggesting that the Cotton future is becoming overvalued.
With market volatility ebbing, the current technical outlook indicates ICE Cotton will remain range-bound for the immediate future.
A look at other Softs also shows upside as Sugar is trading around $24.74 after ending yesterday's session at $24.61 (up 0.53% today). Cocoa added 0.53% and closed around $3,008 yesterday.
While the Cotton future is higher so far today, these Softs commodities are underperforming: Coffee lost 1.37% yesterday and closed at $183.05.
Trading mostly sideways for 2 months. Having set a significant high of $146.62 11 months ago, the Cotton future is trading 43.86% lower.
