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08/06/2020: Cotton Prices See Weather Premium and Export Increases

Yes, it is true many department store retailers have nearly gone bankrupt from lack of customers caused by the pandemic. That would seem to translate to a slack demand for clothing and a disaster for cotton farmers. However, brightening at least the price side of cotton futures is some terrible weather in Texas and Oklahoma, generally decreasing output, while exports are rising globally from many countries around the world including the U.S., which despite trade tensions sold a lot of cotton to China. India is also greatly increasing exports to Southeast Asia.

Our recent article on Cotton is in the Archives Section below.

08-02-2020: Some Commodities We Haven't Currently Reviewed

How do we pick a commodity for review? Here are technical strength or weakness ratings for 0731/2020 on the other major commodities not being currently being reviewed or traded on this site. One way to choose a commodity for review is to look at the previous activity and compare it to the present one, to see if there were any dramatic changes. Commodities currently under review on our list of about 18 on this site are not shown below. It's a way of keeping track of what else is going on with other commodities.


Current Activity:                                                                                           Previous Activity

The ratings are good only for date shown, and rapidly change each day, whereas we review the list only periodically. Once a commodity appears on our list of articles and is being currently traded, we consider its long-term direction has been established and trade consistently from that direction wtihout worrying about day-to-day changes. However, that procedure is not the one we use in swing trading stocks.

Archive List

08-06-2020: December Cotton: Weather and Exports Help Prices

07-25-2020: September Silver: Perfect Storm

07-18-2020: September Orange Juice: Immunity System Boost Creates Demand

07-11-2020: October World Sugar: Brazil Floods the Market

06-29-2020: September Mexican Peso: Interest Rates Slashed

06-20-2020: July Cocoa: W. African Producers Unite to Control Pprices

06-13-2020: September '21 Eurodollars: Not So Dull Anymore

06-04-2020: September Treasury Bonds: Low Interest Rates May Fail to Attract Capital

05-25-2020: August Gasoline: Pessimism About Price Recovery

05-03-2020: June Australian Dollar: Not Just About Interest Rates Anymore

04-24-2020: June Gold: Hyperinflation Fears

04-13-2020: July Natural Gas: Weather, Virus, and the Economy

04-07-2020: July Soybean Meal: Logistics Problems Getting to Market

03-29-2020: June Euro Currency: U.S. Lack of Fiscal Restraint Weakens Dollar

03-13-2020: June Japanese Yen: Flight to Safety

03-04-2020: May Lumber: Struggle to Recover from Supply Disruptions

02-23-2020: March Copper: Virus and Over-Valued Equities Threaten Demand

02-13-2020: March Swiss Franc: Negative Interest Rate Effect

02-01-2020: March NASDAQ 100 Index: Not Virus But Overvaluation Should Be Feared



Performance

Updated once a week (usually on Saturdays) unless the preceding week had less than five trading days.

All Commodities Trades: 06/29/2020 - 08/08/2020

 # Commodity           BS    Buy   Sell   Last    Gain Intended  Rough   Group
                                                 (Loss)    Risk Percent

 7 Sep Australian Dollr C  71.05  72.15  71.50 $  7,490  14,980  27.6% Currency
 7 Sep Cocoa            C  24.04  24.09  25.46 $    140  14,910  14.5% Softs   
 5 Dec Cotton #2        L  62.40         62.36 $   -250  14,975   5.5% Cotton  
10 Sep Eurodollars      C  99.82  99.84  99.82 $    200  14,750  11.0% Finance 
 6 Sep Euro Currency    C 117.53 118.78 117.91 $  9,195  14,925  27.6% Currency
 1 Dec Gold             S        208.08 202.80 $  5,250  14,980  11.1% Prec Met
 5 Sep Hi Grade Copper  C 279.50 292.80 279.30 $ 16,475  14,750   5.4% Copper  
 5 Sep Japanese Yen     C  94.34  94.62  94.43 $  1,600  14,938  27.6% Currency
 4 Sep Lumber           C 586.50 596.40 648.00 $  4,236  14,916   5.5% Lumber  
10 Sep Natural Gas Mini C  18.59  22.75  22.38 $ 10,100  14,975   5.5% Nat Gas 
 1 Sep NASDAQ 100 E-Min C 112.83 108.95 111.23 $ -7,790   7,760   2.9% Stock Id
10 Sep Orange Juice     C 119.22 112.85 114.35 $ -9,855   9,555  14.5% Softs   
 7 Sep Mexican Peso 500 C 435.80 445.20 444.00 $  3,080  14,980  27.6% Currency
 1 Sep Gasoline         C 113.90 125.90 120.80 $  5,010  14,994   5.5% Energies
10 Oct Sugar #11 World  C  12.44  12.95  12.67 $  5,412  14,896  14.5% Softs   
 4 Sep Swiss Franc      S        110.18 109.60 $  2,780  14,950  27.6% Currency
 1 Sep Silver Mini      C  24.26  29.80  27.54 $ 13,820  14,975  11.1% Prec Met
10 Dec Soybean Meal     C 287.80 296.80 286.80 $  8,700  14,800   5.5% Grains  
 1 Sep Treasury Bonds   C 181.00 182.08 181.59 $  1,050  14,990  11.0% Finance 

            Adjustment for Open Positions: -($    7,780)

Prior to 8/03:
Other Gains/-Losses This Reporting Period:   $  281,618  ***
 ***  For Contracts Closed or Rolled Forward  __________
 
Total for all Trades:                        $  350,481

Stocks Site.

Music of Francis Poulenc

Trading in commodities involves substantial risk and past performance is no guarantee of future profits.  Zenith does not sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders/brokers have in encouraging other traders to make the same transactions.  No one should follow investment advice blindly.  This web site should be used only as a "sounding board" for confirming one's own opinion.  Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.

Recommendations may include trades which have already been made on the same or a previous day, otherwise the issue is placed on a "watch list." Suggested trades are based upon an approximate maximum $15,000 capitalization requirement per trade, depending upon initial contract margin requirements.  Zenith's actual trades may be larger.  $22 per round turn for futures is deducted from profit figures.   Commodity option trade recommendations are not tracked, but performance should parallel that of the underlying commodity's.

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