Cotton futures in the May contract settled last Friday in New York at 77.16 while currently trading at 79.82 up about 270 points for the trading week rebounding off of major support around the 76.50 level as I am not currently involved, but I do think the trend will continue to the upside. Cotton prices are trading above their 20 &100 day moving average, but the trend is not strong to the upside as we declined from the contract high from around the 84.50 level which was hit in January as the large money manage funds are still long about 70,000 contracts as they still believe higher prices are ahead.

Cotton prices are at a 3 week high, however my criteria needs a 4/5 week high to enter into a bullish position, but we could be involved in next week's trade as the chart structure will also improve however at the current time the risk/reward is not in your favor to take a bullish position.

Traders are awaiting the next USDA crop report which will be released in about 4 weeks & will state how many acres will be planted in 2018 as my estimation will be higher than last year due to higher prices in my opinion, but we will have to see what that report says as strong demand for this fiber continues to support prices despite the recent downdraft in prices over the last month which I think was just a retracement out of a longer-term bullish trend.

TREND: HIGHER - MIXED

CHART STRUCTURE: POOR

VOLATILITY: MEDIUM