Cotton Futures---Cotton futures experienced a wild trade with high volatility to end the week settling last Friday in New York at 78.01while closing today at 81.68 up about 360 points for the trading week however selling off sharply from early session highs as we traded up to 84.65 before the USDA report was released sending prices negative for the trading session.
I have been recommending a bullish position from the 70.50 level and if you took the trade continue to place the stop loss at 77.37 as volatility certainly has expanded as the crop report was slightly bullish, but it already had been reflected into the price as profit-taking then ensued.
Cotton prices are trading far above its 20 and 100 day moving average as the trend clearly is the upside as the USDA lowered production numbers slightly as the next major level of resistance was today's high around the 85 level which I still think could be retested in next week's trade so stay long & continue to place the proper stop loss.
The U.S dollar was also down about 100 points hitting a 4 month low as that is definitely supportive commodity and cotton prices in general despite the fact that the agricultural markets still remain weak.
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