Struggling to find upward momentum, Cotton has shed $1.32 to currently trade at $85.44 per pound as it ranges between $87.11 and $88.82 so far today.
United States Building Permits (Oct) is next today at 13:30 UTC.
Following a previous reading of 3.92 million, Crude Oil Inventories in United States released yesterday at 15:30 UTC fell short of the -440,000 figure expected by analysts with an actual reading of -5.4 million.
On the flip side, highly important Core Retail Sales data from United States beat analyst expectations of 0.4% with a reading of 1.3%. Data for United States Retail Sales published yesterday at 13:30 UTC came out at 1.3%, beating projections of 1% and showing improvement over the preceding figure of 0%.
Cotton made an initial break below its 10 day Simple Moving Average at $86.91, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of $88.2 currently serving as support. If price action breaks below, the next Fib hurdle is $82. Despite this, Cotton could begin to recover as it approaches significant support, now $1.44 away from $86.88. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems the Cotton future is likely to start pointing downward in the short term.
In the meantime, negative performances are also seen in other Softs as Sugar is down to $19.93, losing 34 cents, after closing at $20.27 in the preceding trading session. Coffee closed at $156.3 (down 1.33%). Cocoa is down to $2,478, losing $24, after closing at $2,502 in the preceding trading session.
Furthermore, United States Philadelphia Fed Manufacturing Index (Nov) is scheduled for today at 13:30 UTC. United States Existing Home Sales (Oct) will be released tomorrow at 15:00 UTC. United States Building Permits (Oct) scheduled to come out today at 13:30 UTC.
Having set a significant high of $154.89 17 days ago, the Cotton future is trading 20.5% lower.