Tatiana Kashyrskaia
The December cotton futures contract is currently being traded within the $65-75 price range. There are no bullish or bearish factors dominating the market. The price is supported by dry and hot weather in the USA, which threatens the crop capacity. Another bullish factor is lower cotton acres.
The market has recently shown the closure of short trades by major speculators. However, the demand is still low. Speculators are not in a hurry to accumulate long trades. There are rumors that the current price (after some growth) is not suitable for major buyers, which may suggest a further downtrend.
The ICE cotton stocks have recently increased by from 0,126 up to 0,128 million bales. The seasonality factor suggests a further decline till September.
According to the Commodity Trading Department of , the price will probably continue moving within the same price range without showing any clear trend.
Tatiana Kashyrskaia
