July ICE cotton futures (CTN25) were under modest selling pressure on Wednesday and slipped to a nine-week low below 65 cents a pound. The overall technical posture for the cotton futures market favors the bears as prices are in a seven-week downtrend on the daily bar chart. However, there are also some early, bullish clues that the cotton market has forged a price bottom.
Since scoring a contract low of 62.05 cents a pound on April 4, July cotton futures have chopped in a sideways trading range. This is likely “basing” action on the daily chart that has put in a price bottom.
