By admin       2018-07-26

Overnight, December cotton rallied back to test the bearish trend-line stemming from the June high down to the July high. After pressing out last Friday’s low, December cotton reversed course to close modestly lower on changes in the Texas weather forecast and the announcement of Trump-Aid for farmers. At the outset of the week, west Texas rain probabilities ranged from 60% up to 80% for late this week. However, those chances diminished yesterday to only 40%. Such a knee-jerk change encourages shorts to cover their positions. Also, yesterday the Trump Administration’s announcement plans to shore up the U.S. agricultural community. The government wants to help alleviate potential tariff loss by farmers to the tune of twelve billion dollars. Overnight, December cotton rallied back to test the bearish trend-line stemming from the June high down to the July high. That resistance stands at 8750, with additional resistance at at 8903. Support is 8610 and 8440. Estimated volume thus far is 3,600 contracts.

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