Cotton futures saw an initial spike higher in price after a price forecast for cotton prices were nudged higher (with some opposition. Cotton futures are up 9 points today currently trading at .6270 per pound at the Intercontinental Exchange in New York.
The Int’l Cotton Advisory Committee raised the outlook of the price of cotton by .01 cent to .71 cents per pound for the 2015/16 season per the industry standards of quality. Another advisory group sees it a different way – declining cotton prices ahead due to world stocks supply sufficient to manufacture “127B tee-shirts.”
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the cotton futures market by stating, “Two major cotton advisory groups are at odds with the cotton forecast (the ICAC and Bloomberg) when in fact cotton (futures) prices can go either way at this point.” Craney adds, “Cotton (futures) prices have been looking for direction for the past two-and-a-half months, but some would argue when looking at a continuous cotton chart the market has been directionless since late last summer.”
Cotton futures trend is at a crossroads once again in its sideways trading this time poised to trade downward. What can really prompt cotton futures direction right now would be “weather” and the El Nino storm is still in effect…
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