{"id":162173,"date":"2019-12-20T10:45:33","date_gmt":"2019-12-20T15:45:33","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=162173"},"modified":"2019-12-20T07:07:25","modified_gmt":"2019-12-20T12:07:25","slug":"cotton-analysis-lower-cotton-supply-estimate-bullish-for-cotton-price","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/12\/cotton-analysis-lower-cotton-supply-estimate-bullish-for-cotton-price\/","title":{"rendered":"COTTON Analysis: Lower cotton supply estimate bullish for Cotton price"},"content":{"rendered":"
December 20, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Lower cotton supply estimate bullish for Cotton price<\/strong><\/p>\n

US cotton production and ending stocks were downgraded in WASDE December report. Will the Cotton price<\/a> rise continue?<\/p>\n

December\u2019s outlook for US cotton in 2019\/20 included lower production and ending stocks compared with last month, according to US Department of Agriculture\u2019s final World Agricultural Supply and Demand Estimates report. Production was lowered by 611,000 bales mainly due to a 500,000-bale decline in Texas. Ending stocks are estimated 600,000 bales lower this month, at 5.5 million. And the global 2019\/20 cotton forecasts include lower beginning stocks and production, largely offset by lower consumption. Lower US production and ending stocks are bullish for cotton price. And further increase in price when large money managed funds are short cotton by 3,000 contracts will create additional support from forced closing of short positions.<\/p>\n

\"Cotton<\/p>\n

On the Daily timeframe Cotton: D1<\/b> is rising. Price is trading above the 50 and 100 day moving averages MA(50) and MA(100).<\/p>\n