The Cotton future has been losing ground for 3 days Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. After closing the previous trading day at $85.1, the Cotton future is up to $85.34 per pound, which makes for a move of 0.28%/24 cents today.
United States Consumer Confidence data will be released today at 15:00 UTC, with an expected improvement to 109 (previous figure was 108.3).
Cotton's upper Bollinger Band® is at $88.84, this is a slight indication of a slowdown.
The Cotton future is likely to reverse course and start pointing downward in the short term.
This rally in ICE Cotton's price coincides with other Softs as Sugar gained 1.65% and is now trading at $21.56.
At the same time, Cocoa is down $28 from the beginning of the session and now trades around $2,583.
Furthermore, the market is looking at tomorrow at 15:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to -1,000,000 from the preceding figure of 533,000.
Also worthy of note, United States ADP Nonfarm Employment Change (Jan) is scheduled for tomorrow at 13:15 UTC. United States Interest Rate is expected tomorrow at 19:00 UTC.
The commodity has been trending lower for about a month. The Cotton future is now trading 45.06% below the significant high of $154.89 it set around 8 months ago.