Cotton futures hovered on Tuesday as early gains during the session were tempered, according to Reuters.
Following a post-Memorial-Day-boost on Tuesday morning, the soft fiber lost momentum and dropped 1.1 percent of its value, roughly 0.82 cents, to hover between 72.45 cents and 75.33 cents. Tuesday's range was higher than the 71.51 cent value seen last Wednesday {unclear}, the lowest price in more than two years.
"It was time for a little technical bounce," independent analyst Mike Stevens told Reuters regarding cotton's movement early in the session. "The market's ripe for (some) short-covering."
At 2:35 p.m. on Tuesday, cotton futures fell 1.11 percent, a 0.82 loss to 72.8 cents per pound.
The record price for cotton futures is $2.197 per pound as established in early March of 2011.
Should an impasse between cotton farmers and merchants in Zimbabwe continue, the government might step forward and purchase the soft fiber directly from farmers, fibre2fashion.com reports. Agriculture Minister Joseph Made disclosed that intention per the advice of the nation's cabinet as to how to address the issue.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
