Cotton Futures--- Cotton futures in the December contract is trading lower for the 3rd consecutive session hitting a fresh contract low down another 40 points at 62.09 as I am currently not involved in this market, but I do think lower prices are ahead.
As I have talked about in previous blogs I was looking to be a seller on some type of rally, but that has not occurred and if you have followed my trading theory which states when prices hit a contract low further contract lows come about and that is exactly what is occurring in this commodity.
Cotton prices are trading far below their 20 and 100 day moving average breaking out of a 6 week consolidation last week as it looks to me that prices will test the 60.00 level as ideal weather conditions in the southern part of the United States continues to put pressure on prices.
Fundamentally speaking the fact that we have not come up with a Chinese trade agreement definitely hurts cotton prices as they are the largest importer of U.S cotton in the world and it doesn't look like an agreement on trade is going to happen anytime soon so if you are short stay short.
CHART STRUCTURE: SOLID
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