Cotton Futures--- Cotton
futures in the December contract are trading below its 20 and 100 day
moving average hitting a 4 week low in today’s trade, however the chart
structure is still poor at this time and if you been reading any of my
previous blogs I have not traded cotton in 2015 as prices have gone
nowhere so I’m still avoiding this market at the current time.
Cotton
prices are at major support and there could be a possible
recommendation coming up in the next couple of days especially if the
chart structure or monetary risk is reduced as concerns about China
slowing down is putting pressure on cotton prices currently. The problem
with China is that they are the largest importer of cotton in the world
and hold around 50% of the world reserves so the reality is they won’t
be importing much cotton therefore reducing demand as it looks to be
another outstanding crop in the southern part of the United States as
harvest will begin in about two months increasing worldwide supplies so
keep an eye on this market as we could be in a short position later next
week.
Traders
are awaiting the August USDA crop report which should send volatility
back into this market as there’s very little volatility at the current
time. TREND: LOWER –CHART STRUCTURE: POOR
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