Cotton Futures—Cotton futures in the July contract is trading lower for the 4th consecutive session down another 165 points at 70.66 hitting another contract low as this market has absolutely fallen out of bed over the last couple of weeks.
I have been recommending a bearish trade from around the 75.74 level and if you took that trade continue to place the stop loss above the 10 day high standing at 78.09 as the chart structure will start to improve on a daily basis as I still don’t believe a bottom has been formed yet.
The agricultural markets are lower across the board once again as it doesn’t look like a trade agreement with China is going to go through anytime soon, but there are other bearish fundamental factors that are pushing cotton lower including weak demand.
Cotton prices are trading far below their 20 and 100 day moving average as clearly the trend is to the downside with the next major level of support at 69.50 and if that is broken prices could head all the way down to the 66 level so stay short as this trend is getting stronger on a weekly basis.
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