Cotton Futures Stagnant with Demand Issues

With the current outlook of a global economic slow-down, cotton futures retreated today in it’s new found uptrend.  The issue is “demand” amongst fragile economies around the world.

Japanese government officials acknowledged today their country’s primary risk as “further slowing down of overseas economies…and ‘sharp fluctuations’ in the financial and capital markets.”  Even China, the world’s number one cotton consumer, is considering selling cotton inventory and canceling some cotton imports.

Cotton (futures) continues to slowly ease back with lighter demand anticipated as a result of global economic slowing.  Additional pressure is coming from news that China is expected to release up to 400,000 metric tons from their (cotton) reserves onto the domestic market,” said Barb Levy, chief director for Futures & Options Xecution’s Futures Division in Chicago, regarding the current cotton futures situation.

The trend for cotton futures is up on the daily charts according to my work.  I am looking to reset a long position in cotton futures in the short-term.


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