Softs in focus as bullish the Cotton future posts 0.56% gain

After closing the previous trading day at $83.62, ICE Cotton is up to $84.09 per pound, which makes for a move of 0.56%/47 cents today.

Nevertheless, Initial Jobless Claims in United States fell short of market expectations (235,000) with a reading of 261,000, continuing the decline from the previous figure of 233,000.

Meanwhile, United States Fed's Balance Sheet released yesterday at 20:30 UTC with a figure of 8.39 trillion, while the previous figure was 8.39 trillion. United States Reserve Balances with Federal Reserve Banks released yesterday at 20:30 UTC with a figure of 3.31 trillion, while the previous figure was 3.21 trillion.

Bollinger Band® analysis indicates that current price action is approaching the upper band at $88, thereby suggesting that Cotton is becoming overvalued.

After posting consistent gains as part of its uptrend and being lifted by intraday sentiment, technical factors suggest ICE Cotton is set for a reversal in the coming days.

This rally in ICE Cotton's price coincides with other Softs as Sugar rallies 1.95% to trade around $25.58. Having closed the previous session at $3,137, Cocoa is up 0.45% today to currently trade at around $3,151.

The commodity has been trending positively for about 2 months. Approximately a year ago, Cotton reached a significant high of $146.62 but has struggled to hold onto its gains and declined 42.97% since then.