How High Can Cotton Prices Go ?

Cotton Futures--- Cotton futures in the December contract which is considered the new crop is trading higher for the 2nd consecutive trading session continuing it's bullish momentum reacting positively off of yesterday's crop report which lowered Chinese production as U.S carryover levels were also lowered to 4.7 million bales as the technical and fundamental picture remains bullish for this commodity.

If you are long a futures contract place the stop loss under the 2 week low standing at 88.40 as the chart structure still remains poor due to the fact that prices have run up rather quickly as I think cotton could retest the June 8th high of 94.82 possibly in tomorrow's trade as I still believe 100 could be in the cards as this is the strongest agricultural commodity of them all.

Strong demand for cotton is also supporting prices in the short term coupled with the fact that the U.S dollar has hit a 4 week low and there are still major concerns about the Texas Panhandle & the southern Great Plains as they are just not receiving adequate rain as production numbers could be lowered on the next crop report which will be released in the month of July so stay long while placing the proper stop loss.

At the present time I do not have any soft commodity recommendations as I only have a 2 trades which include silver and natural gas as many of the commodity markets remain choppy due to the Trump tariff talks.

TREND:---HIGHER

CHART STRUCTURE: POOR

VOLATILITY---HIGH

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