Lower cotton supply forecast bullish for Cotton price
Analysts expect lower US cotton production. Will the Cotton price rise continue?
"Shortly thereafter" of January 15 the US and China will sign the Phase One treaty, which is expected to help increase exports of US agricultural products that suffered during the tariff war. Cotton has been one of agricultural products that suffered during the US – China trade war. Couple of days ago the Commerce Department reported the US trade deficit narrowed 8.2% in December, following 15% decline in November in America’s annual trade deficit with China. At the same time analysts forecast a 500,000-bale cut to 2019 US cotton production. Lower US production and ending stocks are bullish for cotton price. Today the US Department of Agriculture issues its January World Agricultural Supply and Demand Estimates report. More optimistic WASDE output forecast is a downside risk for cotton prices.
On the Daily timeframe Cotton: D1 is rising. Price is trading above the 50 moving averages MA(50), which is rising too.
Technical Analysis Summary
Analysts expect lower US cotton production. Will the Cotton price rise continue?
"Shortly thereafter" of January 15 the US and China will sign the Phase One treaty, which is expected to help increase exports of US agricultural products that suffered during the tariff war. Cotton has been one of agricultural products that suffered during the US – China trade war. Couple of days ago the Commerce Department reported the US trade deficit narrowed 8.2% in December, following 15% decline in November in America’s annual trade deficit with China. At the same time analysts forecast a 500,000-bale cut to 2019 US cotton production. Lower US production and ending stocks are bullish for cotton price. Today the US Department of Agriculture issues its January World Agricultural Supply and Demand Estimates report. More optimistic WASDE output forecast is a downside risk for cotton prices.
On the Daily timeframe Cotton: D1 is rising. Price is trading above the 50 moving averages MA(50), which is rising too.
- The Parabolic Indicator gives a buy signal.
- The Donchian channel indicates uptrend: it is narrowing up.
- The RSI indicator is about to breach into the overbought zone.
- The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
Technical Analysis Summary
Order | Buy |
Buy stop | Above 71.3 |
Stop loss | Below 68.75 |