Cotton Prices Limit Down 500 Points
Cotton Futures--- Cotton futures in New York today sold off 500 points which is locked limit down the most a price can fluctuate on any given day closing in the December contract which is considered the new crop which will be harvested this fall at 67.72 dropping 650 points in the last two days on massive profit-taking and the fact that commodity and stock markets were absolutely crushed today as traders sold out of any risky assets. Cotton prices have been rallying to a 4 week high as of yesterday only to see the Federal Reserve lower GDP in the United States which sent all commodity prices sharply lower today coupled with a weak European economy as well as a slowing of the Chinese economy cotton prices had no chance to the upside today. As I've stated in previous blogs I am not bearish cotton prices down at these levels I think if you're a long-term investor you should be able take advantage of relatively cheap prices in the cotton market at this time. If you take a look at the July contract we rallied over 2000 points in less than three weeks due to massive short covering with an interesting article in the Wall Street Journal yesterday about what happened in the July cotton basically people frantic to get out of it before the last two days of locked limit down trading lower by 1000 points. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.
There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Trading is not responsible for the accuracy of the information contained on linked sites.