The market was looking toppy yesterday after open interest had grown 50,000 contracts in 5 weeks, and today we broke this uptrend channel and may be vulnerable to some further downside testing. Notice the long term chart on page 2 as we bumped up against the resistance line on the monthly chart which also looks bearish in the short term.
After the commodities get rebalanced this week and for those which do not get the boost they were looking for, we may see some further profit taking in certain overbought commodities including cotton.
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