The Cotton future ended sideways yesterday, closing at $80.2

ICE Cotton is on a 4 day downtrend With a marginal improvement upon yesterday's session, without a clear direction, Cotton closed at $80.2 per pound while ranging between $79.7 and $81.05.

Uncertainty around Cotton is reflected by published market data as United States Services PMI released yesterday at 13:45 UTC with a figure of 53.7, while the previous figure was 52.6. Fresh CFTC Crude Oil speculative net positions data from United States came out at 244,600. United States CFTC Gold speculative net positions released yesterday at 20:30 UTC with a figure of 189,900, while the previous figure was 192,700.

Technical analysis shows that Cotton is approaching key support, around 62 cents away from $79.58. 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. 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 upper Bollinger Band® is at $85.02 and the lower is $80.03.

With market volatility ebbing, the current technical outlook indicates Cotton will remain range-bound for the immediate future.

While ICE Cotton was pretty flat yesterday, mixed performances were seen elsewhere as after ending yesterday's session at $24.74, Sugar lost 42 cents and is trading around $24.32. Coffee is down to $191.55, losing $2.35, after ending the previous session around $193.9.

The commodity has been trending lower for about 3 months. ICE Cotton has fallen back around 48.29% from the significant high of $154.89 set 11 months ago.