WTI recovers from near five-month low while wheat slips and cotton consolidates
Outlook on WTI, Chicago wheat and cotton futures ahead of key US inflation reading and major central bank meetings this week.
WTI gingerly recovers from near five-month low
Front month WTI futures are gingerly regaining some of their recently lost ground as traders look ahead to key US inflation data and interest rate decisions from major central banks on Wednesday and Thursday. The recovery from the near six-month low at 68.99 is running out of steam below the 72.38 mid-November low, though. Further minor resistance sits at the mid-July, 22 and 27 November lows at 73.79 to 74.16. Minor support below Monday’s 70.55 low can be spotted around the minor psychological 70.00 mark and further down at last week’s 68.99 low. Still further down lie the late May and June lows at 67.13 to 67.12.
Chicago Wheat reverts its trend on profit taking
Chicago wheat front month futures’ eight consecutive days of gains ran out of steam along the 200-day simple moving average (SMA) at 640.28 before keeling over, having beforehand briefly made a new four-month high at 650. A drop towards the 55-day simple moving average (SMA) at 592.32 is underway on profit-taking as China keeps buying US supply. Resistance above the October-to-November highs at 617 to 620 sits at Thursday’s 623 low, ahead of Friday’s 630 trough.
NY Cotton futures remain capped
New York front month cotton futures have risen from their 77.42 November low to last week’s 83.17 high in three distinct corrective waves before consolidating. Key resistance between the tentative October-to-December downtrend line, 200- and 55-day simple moving averages (SMA) at 82.90 to 83.31 probably put an end to the recent advance. In case of a resumption of the October-to-November decline, the 77.42 November trough would be back in focus. First, though, a fall and daily chart close below Friday’s low at 81.26 would need to be seen. In this case, the late November high at 80.53 could be reached.
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