The Cotton future set for weak finish today; down 0.35% to $83.35 per pound with a day before close

Cotton is down to $83.35 per pound, after ending today at $83.64. Overall, a 0.35% loss or 29 cents today.

While price action maintains a negative bias, United States Consumer Price Index came out at 0.1%, while a consensus of analysts was expecting 0.2%. United States Consumer Price Index released today at 12:30 UTC with a figure of 4%, while the previous figure was 4.9%. United States Core Consumer Prices released today at 12:30 UTC with a figure of 0.4%, while the previous figure was 0.4%.

Bollinger Bands® shows an indication of recovery: the lower band is at $81, a low enough level to, generally, suggest that Cotton is trading below its fair value.

Overall, looking at the technical analysis landscape, it seems the Cotton future —which is currently on a downtrend— might reverse course and start pointing upward in the short term.

Taking a look at other Softs commodities, negative performances are evident as Sugar is down to $24.75, losing 40 cents, after closing at $25.15 in the preceding trading session. Coffee is trading around $178.3 (down $3.2).

Though Cotton has been dropping, other Softs have been performing better: Cocoa gained 1.79% and is now trading at $3,186.

With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as United States Producer Price Index projected to decline to -0.1% while previous data was 0.2%; data will be released tomorrow at 12:30 UTC.

Some optimism can drawn from the fact that United States Crude Oil Inventories is projected to outperform its last figure with 1.48 million. It previously stood at -451,000; data will be released tomorrow at 14:30 UTC.

Furthermore, United States Interest Rate figure is projected at 5.25. It previously stood at 5.25; data will be released tomorrow at 18:00 UTC.

The commodity has been trending positively for about 3 months. Approximately 1 year, 1 day ago, ICE Cotton reached a significant high of $145.58 but has struggled to hold onto its gains and declined 42.55% since then.