29 August 10:08 AM
Last week cotton futures dropped to the 2-week low. Cotlook Ltd. predicts this MY surplus of natural fiber to rise by 55 percent. This is supposed to be mostly caused by lower demand for cotton from the PRC, which is the good’s largest consumer. Manufacturers want to derive benefit from high prices, as it will later be too difficult when cotton is in surplus.
December future for cotton has dropped by 2.1 percent, having amounted to 75.21 cents per pound. This is the lowest quotation at New York Exchange since August 10. During the week the prices have risen by 2.6 percent.
Concerning other products: raw sugar has dropped by 0.1 percent – to 19.58 cents per pound; weekly decline of October future has amounted to 3 percent. December future for cocoa has risen by 0.5 percent – to 2397 dollars per ton. However, it has dropped by 1.8 percent during the week. By the end of the week price for Arabica to be supplied in December has increased by 0.6 percent – to 1.629 dollar per pound, but in one-week time prices have dropped by 0.2 percent.
At this point short-term price rise above 77.5 may start, provided that correction is over. However, if point 74.5 is broken, (y) wave may continue its formation within correctional wave of higher level.
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European stock indices have started this trading week positively and are currently trading in the green zone. Some indices keep making new 5-year highs.