Cotton Prices Higher On Possible Trade Agreement

Cotton Futures---Cotton futures in the December contract settled last Friday in New York at 61.67 while currently trading at 62.65 up about 100 points for the trading week as prices have hit an 11-week high. A possible trade agreement with China might be revealed later this afternoon as that is sending many sectors higher and if that situation comes to fruition cotton prices could rally significantly as China is the number one importer of U.S cotton in the world.

I have been recommending a bullish position from around the 61.50 level and if you took that trade continue to place the stop loss under the August 26th low of 56.59 as an exit strategy. I will be looking at adding more contracts to the upside if prices break the September 13th high of 63.39 as the chart structure is outstanding at the present time coupled with the fact that the risk / reward is in your favor as the daily chart looks to have established a rounding bottom over the last several weeks so stay long as there is room to run to the upside.

At the present time I also had several grain recommendations as the agricultural markets have been depressed due to no trade deal, however if that is reversed significant gains will be ahead.

TREND: HIGHER

CHART STRUCTURE: IMPROVING

VOLATILITY: INCREASING

If you are looking to contact Michael Seery (CTACOMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

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