Cotton Futures at Critical Technical Support

Yesterday, technical analysts were observing the gold market but today other techies are seeing more downside in the cotton futures market.  Cotton futures are already in a swing lower not seen since last summer.

Cotton futures may have seen their yearly high near .94 cents per pound in mid-March, but after this 11-month high cotton futures have retreated to their 10-week low moving average.  Cotton futures fell just over 1% last month, and this month so far they are down an additional 4%+.
The strength in the other grain markets is not transferring into cotton.  …look at the spread between July Cotton and December Cotton (futures), it is showing lower (cotton) prices,” said Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current cotton futures situation.

I concur with my peers about cotton futures in a breakdown.  My first cotton futures target is the .80 cent level followed by the low .78 cent area.  Cotton futures tendency is to trend lower through the first week in August.


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