Yes, it is true many department store retailers have nearly gone bankrupt from lack of customers caused by the pandemic. That would seem to translate to a slack demand for clothing and a disaster for cotton farmers. However, brightening at least the price side of cotton futures is some terrible weather in Texas and Oklahoma, generally decreasing output, while exports are rising globally from many countries around the world including the U.S., which despite trade tensions sold
a lot of cotton to China. India is also greatly increasing exports to Southeast Asia.
Our recent article on Cotton is in the Archives Section below.
How do we pick a commodity for review? Here are technical strength or weakness ratings for 0731/2020 on the other major commodities not being currently being reviewed or traded on this site. One way to choose a commodity for review is to look at the previous activity and compare it to the present one, to see if there were any dramatic changes. Commodities currently under review on our list of about 18 on this site are not shown below. It's a way of keeping track of what else is going on with other commodities.
Current Activity:
Previous Activity
The ratings are good only for date shown, and rapidly change each day, whereas we review the list only periodically. Once a commodity appears on our list of articles and is being currently traded, we consider its long-term direction has been established and trade consistently from that direction wtihout worrying about day-to-day changes. However, that procedure is not the one we use in swing trading stocks.
08-06-2020: December Cotton: Weather and Exports Help Prices
07-25-2020: September Silver: Perfect Storm
07-18-2020: September Orange Juice: Immunity System Boost Creates Demand
07-11-2020: October World Sugar: Brazil Floods the Market
06-29-2020: September Mexican Peso: Interest Rates Slashed
06-20-2020: July Cocoa: W. African Producers Unite to Control Pprices
06-13-2020: September '21 Eurodollars: Not So Dull Anymore
06-04-2020: September Treasury Bonds: Low Interest Rates May Fail to Attract Capital
05-25-2020: August Gasoline: Pessimism About Price Recovery
05-03-2020: June Australian Dollar: Not Just About Interest Rates Anymore
04-24-2020: June Gold: Hyperinflation Fears
04-13-2020: July Natural Gas: Weather, Virus, and the Economy
04-07-2020: July Soybean Meal: Logistics Problems Getting to Market
03-29-2020: June Euro Currency: U.S. Lack of Fiscal Restraint Weakens Dollar
03-13-2020: June Japanese Yen: Flight to Safety
03-04-2020: May Lumber: Struggle to Recover from Supply Disruptions
02-23-2020: March Copper: Virus and Over-Valued Equities Threaten Demand
02-13-2020: March Swiss Franc: Negative Interest Rate Effect
02-01-2020: March NASDAQ 100 Index: Not Virus But Overvaluation Should Be Feared
Performance |
Updated once a week (usually on Saturdays) unless the preceding week had less than five trading days.
# Commodity BS Buy Sell Last Gain Intended Rough Group (Loss) Risk Percent 7 Sep Australian Dollr C 71.05 72.15 71.50 $ 7,490 14,980 27.6% Currency 7 Sep Cocoa C 24.04 24.09 25.46 $ 140 14,910 14.5% Softs 5 Dec Cotton #2 L 62.40 62.36 $ -250 14,975 5.5% Cotton 10 Sep Eurodollars C 99.82 99.84 99.82 $ 200 14,750 11.0% Finance 6 Sep Euro Currency C 117.53 118.78 117.91 $ 9,195 14,925 27.6% Currency 1 Dec Gold S 208.08 202.80 $ 5,250 14,980 11.1% Prec Met 5 Sep Hi Grade Copper C 279.50 292.80 279.30 $ 16,475 14,750 5.4% Copper 5 Sep Japanese Yen C 94.34 94.62 94.43 $ 1,600 14,938 27.6% Currency 4 Sep Lumber C 586.50 596.40 648.00 $ 4,236 14,916 5.5% Lumber 10 Sep Natural Gas Mini C 18.59 22.75 22.38 $ 10,100 14,975 5.5% Nat Gas 1 Sep NASDAQ 100 E-Min C 112.83 108.95 111.23 $ -7,790 7,760 2.9% Stock Id 10 Sep Orange Juice C 119.22 112.85 114.35 $ -9,855 9,555 14.5% Softs 7 Sep Mexican Peso 500 C 435.80 445.20 444.00 $ 3,080 14,980 27.6% Currency 1 Sep Gasoline C 113.90 125.90 120.80 $ 5,010 14,994 5.5% Energies 10 Oct Sugar #11 World C 12.44 12.95 12.67 $ 5,412 14,896 14.5% Softs 4 Sep Swiss Franc S 110.18 109.60 $ 2,780 14,950 27.6% Currency 1 Sep Silver Mini C 24.26 29.80 27.54 $ 13,820 14,975 11.1% Prec Met 10 Dec Soybean Meal C 287.80 296.80 286.80 $ 8,700 14,800 5.5% Grains 1 Sep Treasury Bonds C 181.00 182.08 181.59 $ 1,050 14,990 11.0% Finance Adjustment for Open Positions: -($ 7,780) Prior to 8/03: Other Gains/-Losses This Reporting Period: $ 281,618 *** *** For Contracts Closed or Rolled Forward __________ Total for all Trades: $ 350,481
Trading in commodities involves substantial risk and past performance is no guarantee of future profits. Zenith does not sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders/brokers have in encouraging other traders to make the same transactions. No one should follow investment advice blindly. This web site should be used only as a "sounding board" for confirming one's own opinion. Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.Recommendations may include trades which have already been made on the same or a previous day, otherwise the issue is placed on a "watch list." Suggested trades are based upon an approximate maximum $15,000 capitalization requirement per trade, depending upon initial contract margin requirements. Zenith's actual trades may be larger. $22 per round turn for futures is deducted from profit figures. Commodity option trade recommendations are not tracked, but performance should parallel that of the underlying commodity's.