Oil price slides on demand concerns while cotton and orange juice prices rise
Outlook on WTI, cotton and orange juice futures amid a post Fed-meeting slightly rising US dollar.
WTI slips on demand concerns and stronger US dollar
Front month WTI futures’ descent from Monday’s 78.87 high following a deadly drone attack on a US military base in Jordan by Iran-backed militia is ongoing with a one-week low currently being made despite further Houthi attacks on US merchant ships taking place. Investors are thus clearly more worried about a lack of future demand than geo-political tensions and tight supply.
The fall through the January-to-February uptrend line and the 200-day simple moving average (SMA) at 77.29 leads to the 12 and 22 January highs at 75.45 to 75.27 to be in sight. Minor resistance above Thursday’s intraday high at 76.44 is seen along the 200-day SMA at 77.29 ahead of Thursday’s 78.03 high.
Cotton price resumed its ascent
Front month cotton futures have been steadily rising since the beginning of the year and have risen to last week’s 3 ½ month high at 86.68 before short-term correcting lower to this week’s 84.66 low. From there another up leg seems to be made, though, which could put the 90.13 September peak on the map once a rise above the 86.64 to 86.68 late October and January highs has been seen. This bullish scenario will remain in play while this week’s low at 84.66 underpins.
Orange juice futures see accelerating rally off five-month low
Front month orange juice futures at first saw a tentative attempt at reversing their November-to-January downtrend which took these to 289.89 in mid-January, before a surge to the upside took place in late January, once the 200-day simple moving average (SMA) at 315.82 had been exceeded. Within three days the 55-day simple moving average (SMA) at 349.92 had been reached with further upside towards the 12 December high at 378.58 being in store. Slips should find support around the early January high at 339.47.
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