Japan, owner of the globe's third-largest economy behind those of the U.S. and China, reduced its assessment of its economy for the first time since November of last year, according to a monthly report issued by the Cabinet Office in the capital of the Pacific Rim nation. The report also cited additional slowdowns of international economies along with capital and financial markets' "sharp fluctuations."
"A slower world economy has a negative impact on cotton, as purchases can be delayed, unlike food commodities," states an email punned by president Sid Love with Joe Kropf & Sid Love Consulting in Overland Park, Kansas, to Bloomberg.
At 2:30 p.m. on Tuesday, cotton futures fell 0.68 percent, a 0.52 cent loss to 75.62 cents per pound.
Reuters reports the nation's recovery from the Great Recession has run into hitches and the additional pressure is mounting on the Bank of Japan to implement some monetary easing policies as a method of spurring the economy.
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.