Cotton Futures

Cotton futures in the May contract is currently down 90 points at 82.03 breaking a 4 day winning streak as prices are still hovering right near a 4 week high as I’m currently not involved in this market, but I do have a bullish bias to the upside as prices remain strong due to excellent demand for this product.

Prices are trading above their 20 and 100 day moving average as the trend is higher, however the chart structure is poor as the 10 day low is standing at 76.44 as the risk is around $3,000 per contract which is too much monetary risk in my opinion so I will be patient & keep a close eye on this market for a bullish position.

Traders are looking forward to the highly anticipated crop report which will be released on March 8th as the volatility certainly should start to expand as spring planting is right around the corner as I still think higher prices are ahead with the possibility of retesting the contract high which was hit on January 12th at 84.45 & if that level is broken prices could trade substantially higher.

The grain market is starting to rally significantly in 2018 & as I’ve talked about in many previous blogs I am bullish many commodity sectors as cotton and cocoa are the strongest out of the soft commodities at the present time as we will now focus on how many acres will be planted in 2018 and in my opinion it will be higher than 2017.

TREND: –HIGHER

CHART STRUCTURE: POOR

VOLATILITY—MEDIUM

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