AFB Cotton Close: Price Plunge Lower
Cotton prices plunged lower today, with the October and December contracts closing down the limit. Sharp gains over the last week moved this market into oversold territory signaling a technical selloff in cotton. While the U.S. crop conditions continue to worsen, overall global supplies remain large putting downward pressure on cotton.
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,