| 
April 05, 2023
ICE Cotton drops from $81.38 to $80.74 per pound, losing 64 cents (0.79%) today.
United States ADP Nonfarm Employment Change (Mar) is next today at 12:15 UTC.
Meanwhile, United States JOLTs Job Openings (Feb) came out at 9.93 million, while a consensus of analysts was expecting 10.4 million. United States API Weekly Crude Oil Stock released yesterday at 20:30 UTC with a figure of -4.35 million, while the previous figure was -6 million. United States Factory Orders released earlier showed a marked improvement to -0.7% from the preceding data of -2.1%, but fell short of the -0.5% figure forecast by a consensus of market analysts.
Chart analysis indicates Cotton could begin to recover as it approaches significant support, now 88 cents away from $79.86. Dipping below could be an indication that further losses are ahead. With regards to technical trend indicators, chart analysis show 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 the Cotton future's lower Bollinger Band® is at $79.16, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
All in all, the technical analysis suggests ICE Cotton has no clear-cut direction.
Though the Cotton future has been dropping, other Softs have been performing better: Sugar is up 2.9%. Having closed the previous session at $173.95, Coffee is up 1.64% today to currently trade at around $176.8. Having closed the previous session at $2,882, Cocoa is up 0.87% today to currently trade at around $2,907.
Moreover, United States Crude Oil Inventories is projected to outperform its last figure with -2.33 million. It previously stood at -7.49 million; data will be released today at 14:30 UTC.
Furthermore, United States ADP Nonfarm Employment Change (Mar) will be released today at 12:15 UTC. United States ISM Non-Manufacturing PMI (Mar) is scheduled for today at 14:00 UTC.
The commodity has been trending lower for about 3 months. ICE Cotton is now trading 47.46% below the significant high of $154.89 it set around 11 months ago.
