Cotton Market Moves Higher
Cotton moved higher fueled by higher other commodities prices. The general pull back in commodities this week came to an end today after slightly higher prices overnight. We did see an attempt at the lows set on Thursday, but most every commodity closed in green today as the CRB worked back above 400. We are seeing…
Egytex News Desk
Egytex
The stock market and dollar enjoyed a nice week, but the trend from the weak economy does not feel like it is over yet. We may still have some volatility going forward which should allow commodities to rally and the dollar to find resistance. The short term for cotton feels friendly and we will have to see if the technicals can start to turn positive next week.
We are in a negative seasonal pattern as we approach the large Northern Hemisphere planting period. Technically, we broke the strong support line at 70 cents in N’08 this week.
The next strong line of support can be found at 66.13 but it may avoid testing until closer to FND in June. The cotton market feels like we are putting in a short term bottom, but the Commitment of traders report showed the non-commercials continue to reduce their longs.
Oil prices rebounded today all the way to 115.00 even though the dollar closed higher. Short term feels friendly as we may try and test the 72.50 level and the 9-day moving average next week if grains stay firm.
Source: ECOM USA Inc
From the Egytex news archive, first published on 3 May 2008. Figures and names are as reported at the time.
