Oil and cotton prices rise on supply concerns as orange juice futures recover
Outlook on Brent crude oil, cotton and orange juice as the latter recovers from a five-month low.
Brent crude oil price rises on supply concerns
The price of Brent crude oil is on the up after renewed strikes by US and UK forces on Houthi targets in Yemen increased concerns of an escalation in the region that could disrupt supply. The November-to-January downtrend line at 79.50 is currently being broken through with a move above Monday’s high at 80.17 likely engaging the current January high at 80.53. Further up the late December peak and 200-day simple moving average (SMA) at 81.44 to 81.47 may also be reached in the near future. Slips should find support around the 55-day simple moving average (SMA) at 78.87. While the next lower low from Monday at 77.54 underpins, upside pressure should retain the upper hand.
Cotton price rise is seen accelerating
Front month cotton futures have been steadily rising since the beginning of the year but once they had overcome the 200-day simple moving average (SMA) at 83.08 accelerated their ascent towards the 86.64 late October high. Minor support below Monday’s 84.19 low sits at the 20 October 83.31 low and the 83.17 December high.
Orange juice futures recover from five-month low
Front month orange juice futures last week managed to stabilize at 289.89, marginally above their May high and August low at 287.24 to 287.21 which may still offer interim support, were it to be revisited. If fallen through, the April peak at 280.38 would be next in line. The recent bounce has encountered the 200-day simple moving average (SMA) at 313.90 which acts as resistance, together with Tuesday’s 318.11 intraday high. Resistance above 318.11 comes in at the early January high at 339.47 which would need to be bettered for a medium-term bullish reversal to become plausible. Until then the downtrend remains firmly entrenched.
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