Cotton ended the previous session at $83.65; currently trading at $81.47 per pound

Cotton is grinding lower from $83.65 to $81.47 per pound, shedding $2.18 (2.61%) today.

The Cotton future is currently trading at $81.47 following the release of Existing Home Sales (Mar) data from the United States.

Highly important Initial Jobless Claims data from United States beat analyst expectations of 240,000 with a reading of 245,000.

Meanwhile, United States Existing Home Sales (Mar) came out at 4.44 million, while a consensus of analysts was expecting 4.5 million. United States Philadelphia Fed Manufacturing Index (Apr) released today at 12:30 UTC with a figure of -31.3, while the previous figure was -23.2.

Cotton made an initial break below its 50 day Simple Moving Average at $83.55, a possible indication of a forthcoming negative trend. ICE Cotton formed a session range of $81.32 to $83.7 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $82.92. Cotton's upper Bollinger Band® is at $84.85 which indicates a further downward move may follow. The Cotton future broke through the $82.96 support line and dropped $1.49 below it.

Overall, looking at the technical analysis landscape, it seems Cotton is likely to continue pointing down in the short term.

In the meantime, negative performances are also seen in other Softs as Coffee is down $5.05 from the beginning of the session and now trades around $195.1.

Though ICE Cotton has been dropping, other Softs have been performing better: Sugar is up 1.84%.

Trading mostly sideways for 3 months. Over the past 11 months, the Cotton future has retreated 46% from a noteworthy peak of $154.89.