Cotton Futures--- This is a perfect example why you must understand old/new crop as the July cotton which is considered the old crop has rallied over a 1000 points in the last 3 days, however the December contract which is considered the new crop is only up about 230 points as they are basically 2 different commodities and can move in opposite directions.

The main reason for the July contract to be sharply higher is huge demand for U.S cotton at the present time, however the December contract is going to have over 12 million acres planted in 2017 as we should produce a record crop therefore supplies are much higher down the road than they are right now as that is the main reason for the disparity in prices. Cotton prices are trading above their 20 and 100 day moving average as the December contract is at 74.50 with major resistance at 75/76 as it has not made a contract high yet as I am currently not involved in this commodity.

Volatility in the July contract is sky high with huge risk at the present time so if you are looking to get involved with less volatility trade the December contract as planting is in full swing in the southern part of the United States.TREND: --HIGHER--CHART STRUCTURE: POOR