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ECOM daily cotton market recap - Jan 24, 2007
25 Jan '07
2 min read
Futures were initially called to open around 20 lower this morning before opening around 40 lower at 54.40 in march as the first tick. Last evening's US state of the Union was supposed to be a flagship for the Ethanol industry, and in turn grain complex, however the president's comments on renewable energy were a little ambiguous and vague for the CBOT markets which gave back much of yesterday's gains in true buy the rumor sell the fact fashion, which in turn did not allow cotton to follow through on yesterday's gains.
From the opening the board attempted to push towards unchanged for the best part of the first hour, and being unable to achieve this, the market settled into a very slow, very tight intra day range, tracking inside a 40 point total range during the day before settling on the opening level once again. Spread trading was active in the March / May, in fact tightening a little by sessions close, though overall action across flat price, spread and options were very light. Estimated volume was expectedly light at 11,068 lots.
Tomorrow's US export report should be interesting following a surprising 290,000 + sales report last week. There have been
rumors of further US business into the far east over the last week, especially originating at Co-operative level. Either way the report if it were sales heavy would negate much of the feedback we are getting from the export markets, where sluggish and quiet are reportedly the status quo.
More sideways consolidation for the March contract, opening and closing in a doji formation, whilst trading in a miniscule 40 point daily inside range. We are still stuck in a short term trading range between 52.90 and 55.15, which continues to be the
nearby course for the virtually lifeless March contract.
Outside of this range we continue to see the greater range from 57.00 down to 51.00 in general. Momentum is very neutral at 49.16 on the RSI, whilst the moving averages (9 EMA and 50 SMA) are still converging, which is still a wild card for lower price extremes.
Click here to view graphical presentation:
From the opening the board attempted to push towards unchanged for the best part of the first hour, and being unable to achieve this, the market settled into a very slow, very tight intra day range, tracking inside a 40 point total range during the day before settling on the opening level once again. Spread trading was active in the March / May, in fact tightening a little by sessions close, though overall action across flat price, spread and options were very light. Estimated volume was expectedly light at 11,068 lots.
Tomorrow's US export report should be interesting following a surprising 290,000 + sales report last week. There have been
rumors of further US business into the far east over the last week, especially originating at Co-operative level. Either way the report if it were sales heavy would negate much of the feedback we are getting from the export markets, where sluggish and quiet are reportedly the status quo.
More sideways consolidation for the March contract, opening and closing in a doji formation, whilst trading in a miniscule 40 point daily inside range. We are still stuck in a short term trading range between 52.90 and 55.15, which continues to be the
nearby course for the virtually lifeless March contract.
Outside of this range we continue to see the greater range from 57.00 down to 51.00 in general. Momentum is very neutral at 49.16 on the RSI, whilst the moving averages (9 EMA and 50 SMA) are still converging, which is still a wild card for lower price extremes.
Click here to view graphical presentation:
ECOM USA Inc
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