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May 20, 2023While ICE Cotton is on an 8 day uptrend Yesterday's session put the brakes on the ongoing uptrend — a quiet day for the Cotton future as it remained range-bound within a $86.13 – $88 range before closing at $86.65 per pound.
Uncertainty around the Cotton future is reflected by published market data as United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 191,500, while the previous figure was 216,600. Fresh CFTC Gold speculative net positions data from United States came out at 179,800. United States CFTC Nasdaq 100 speculative net positions released yesterday at 20:30 UTC with a figure of 20,000, while the previous figure was 21,400.
Cotton is approaching key support, around 79 cents away from $85.86. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. ICE Cotton made an initial breakout above its 200 day Simple Moving Average at $86.73, a potential indicator of a newly emerging bullish phase. In contrast, Cotton's upper Bollinger Band® is at $87.39, suggesting that a downward move may follow.
With market volatility ebbing, the current technical outlook indicates ICE Cotton will break higher above its recent ranges in the immediate future.
While Cotton was pretty flat yesterday, mixed performances were seen elsewhere as Cocoa went up by 2.67% yesterday, and closed at $3,071. Notably, Coffee rose 2.17% yesterday and closed at $186.65.
The commodity has been trending positively for about 2 months. Cotton has shed $60.67 points and is languishing 41.18% lower over the past year, leaving its yearly highs around $147.32 in the rear-view mirror.
