COTTON Weekly Special Report based On 1.00 Lot Calculation:
COTTON: THE MARKET
Cotton production is of immense importance globally, serving as a cornerstone of the textile industry and economies worldwide. As one of the oldest and most versatile natural fibres, cotton finds application in a wide variety of products, including clothing, home textiles, medical supplies and industrial products.
- COTTON MARKET: Cotton market size is estimated at USD 43.96 billion in 2024, and is expected to reach USD 50.22 billion by 2029.
- MAJOR COTTON PRODUCERS: China is the largest producer of cotton, India ranks second and the United States often competes with India for the second spot. Pakistan is also another significant cotton producer.
- MAJOR COTTON CONSUMERS: Besides being the major producer, China is also the largest consumer of cotton in the world due to its vast textile industry, with more than eight million tonnes per year.
COTTON: ANALYSIS AND EVENTS
- US INFLATION (CPI) (Wednesday, April 10 th , 2024 at 13:30 GMT+1) The United States will report its CPI for March. February CPI came in at 3.2%, Year-over-Year, well below its peak of 9.1% peak in 2022. Inflation Continues to trend lower, with levels approaching the Federal Reserve’s 2% target. The lower inflation could be positive for cotton, as it trades in $.
- PRICE ACTION: Cotton made its recent all-time high of $155.77 in May 2022. The stock currently trades around $87, which is around 44% below this price. If a full recovery follows, the commodity price could increase around 79%. However, the price could also decline further.
- TECHNICAL REVIEW: There is a support level around the current price, which acted as resistance since 11-10-2022 on numerous occasions until 08-02-2024, when it broke strongly to the upside.
Please note that past performance does not guarantee future results.
COTTON, April 5, 2024
Current Price: 87.00
|
Cotton |
Weekly |
|
Trend direction |
|
|
155.00 |
|
|
123.00 |
|
|
100.00 |
|
|
80.00 |
|
|
74.00 |
|
|
70.00 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
Cotton |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
68,000.00 |
36,000.00 |
13,000.00 |
-7,000.00 |
-13,000.00 |
-17,000.00 |
|
Profit or loss in €² |
62,739.02 |
33,214.78 |
11,994.22 |
-6,458.43 |
-11,994.22 |
-15,684.75 |
|
Profit or loss in £² |
53,824.08 |
28,495.10 |
10,289.90 |
-5,540.71 |
-10,289.90 |
-13,456.02 |
|
Profit or loss in C$² |
92,177.06 |
48,799.62 |
17,622.09 |
-9,488.82 |
-17,622.09 |
-23,044.27 |
- 1.00 lot is equivalent of 1000 units
- Calculations for exchange rate used as of 10:55 (GMT+1) 05/04/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail