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April 19, 2023
While the Cotton future is on a 12 day bullish trend, Today's session might suggest a slow down — ICE Cotton trades at $84.82 per pound, after ending yesterday at $84.83.
Cotton's state is reflected by market data as United States Building Permits (Mar) released yesterday at 12:30 UTC with a figure of 1.41 million, while the previous figure was 1.55 million. United States API Weekly Crude Oil Stock came out at -2.67 million, while a consensus of analysts was expecting -2.46 million. Following a previous reading of 7.3%, Housing Starts in United States released yesterday at 12:30 UTC fell short of the 0.4% figure expected by analysts with an actual reading of -0.8%.
Trend and momentum analysis indicates that investors are seeking long positions as Cotton price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. According to asset volatility analysis, ICE Cotton's upper Bollinger Band® is at $85.57, suggesting that a downward move may follow.
Notwithstanding Cotton's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Meanwhile, mixed performances are seen in other Softs as having closed the previous session at $2,919, Cocoa is up 2% today to currently trade at around $2,977. Coffee is up 1.21% to $201.45.
Moreover, United States Crude Oil Inventories expected to decline to -1 million while its preceding data was 597,000, data will be available today at 14:30 UTC. United States Philadelphia Fed Manufacturing Index (Apr) scheduled to come out tomorrow at 12:30 UTC. United States Existing Home Sales (Mar) is expected tomorrow at 14:00 UTC.
Trading mostly sideways for 3 months. ICE Cotton has fallen back around 45.23% from the significant high of $154.89 set 11 months ago.
