Poor U.S Crop Pushes Cotton Prices To New Highs

22 Dec in Blog, coffee futures, commodity trading, cotton futures, futures trading, lumber futures, Mike Seery, orange juice futures, seeryfutures, sugar futures

Cotton Futures---Cotton futures in the March contract settled last Friday in New York at 75.92 while currently trading at 77.82 up about 190 points for the trading week continuing its bullish momentum due to extremely strong export sales which continue to prop up prices over the last couple of months.

I have been recommending a bullish position from the 70.50 level & if you took the trade the stop loss remains at 72.76, however in Wednesday's trade as we are closed on Monday due to Christmas will be raised to 73.90 and then will be raised again shortly afterwards therefore lowering the monetary risk as the chart structure is improving on a daily basis.

Cotton prices broke out of a 9 week consolidation in mid-November as the U.S crop is not as good as we once thought as a frost in West Texas coupled with hurricanes causing flooding has produced a sub par crop and that is why we are also seeing sharp moves to the upside so stay long & continue to place the proper stop loss as I still think prices could be trading in the low 80s possibly in next week's trade.

Cotton prices are trading above their 20 and 100 day moving average as this trend is getting stronger on a weekly basis & by far is the strongest out of the agricultural sectors as most of them continue to see year-end selling as that just tells you how strong this market is to the upside.

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY---INCREASING

 

 

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