Cotton Soars 3.51% as Cocoa Declines 5.66%
· Commodities · QuoteReporter
Cotton Soars 3.51% as Cocoa Declines 5.66%
Commodities Market Update | February 11, 2026
Market Commentary
### Commodities Market Commentary: Geopolitical Tensions and Dollar Weakness Drive Gains
Commodity markets exhibited broad-based strength this week, buoyed by escalating geopolitical risks and a softening U.S. dollar amid expectations of Federal Reserve rate cuts. The USD’s decline, fueled by anticipation of robust yet cooling U.S. payroll data and persistent rate-cut bets, has amplified commodity appeal as a hedge against currency depreciation. Precious metals led the rally, underscoring their role as safe-haven assets amid global uncertainties, while energy and agricultural sectors benefited from supply disruptions and robust demand signals.
In the energy complex, crude oil prices advanced, with WTI climbing 0.67% to $64.39 per barrel and Brent gaining 0.58% to $69.20. Heightened U.S.-Iran tensions have raised fears of supply interruptions in the Middle East, tightening global crude balances. This geopolitical premium is compounded by improving demand outlooks from major importers like India and China, where economic stimulus measures are expected to bolster consumption. Natural gas edged up 0.35% to $3.13 per million British thermal units, reflecting seasonal storage concerns and potential policy shifts toward domestic energy production. These trends could ripple into broader inflation pressures, influencing central bank policies and supporting higher energy-linked commodity prices.
Precious metals shone as inflation hedges, with silver surging 2.40% to $82.14 per ounce and gold rising 1.55% to $5,081.60. Platinum (+2.02% to $2,133.90) and palladium (+1.82% to $1,754.00) followed suit, driven by industrial demand recovery and their dual appeal as stores of value. The USD’s pullback enhances affordability for foreign buyers, while ongoing monetary easing signals—such as anticipated Fed cuts—reinforce metals’ anti-inflationary narrative against persistent supply chain frictions.
Base metals like copper gained 0.86% to $5.95 per pound, supported by infrastructure spending in emerging markets and supply constraints from mining disruptions. Agricultural commodities also firmed, with cotton jumping 3.51% to $63.77 cents per pound on favorable weather outlooks boosting yields, and wheat up 0.62% to $531.50 bushels amid global supply tightness from weather variability in key producing regions.
Overall, macroeconomic tailwinds from dovish interest rate expectations and geopolitical volatility point to sustained upside, though any de-escalation in tensions could.
Commodities Overview
| Commodity | Price | Daily (%) | 52W High | 52W Low | RSI (14) |
|---|---|---|---|---|---|
| Cotton | $63.77 | +3.51% | $68.02 | $60.79 | 54.0 (Neutral) |
| Silver | $82.14 | +2.40% | $121.30 | $35.27 | 48.4 (Neutral) |
| Platinum | $2133.90 | +2.02% | $2852.40 | $1085.90 | 45.7 (Neutral) |
| Palladium | $1754.00 | +1.82% | $2169.90 | $1002.50 | 48.2 (Neutral) |
| Gold | $5081.60 | +1.55% | $5586.20 | $3253.80 | 60.6 (Neutral) |
| Copper | $5.95 | +0.86% | $6.51 | $4.32 | 54.1 (Neutral) |
| Crude Oil (WTI) | $64.39 | +0.67% | $78.40 | $54.98 | 58.8 (Neutral) |
| Wheat | $531.50 | +0.62% | $578.25 | $492.25 | 55.3 (Neutral) |
| Brent Oil | $69.20 | +0.58% | $81.40 | $58.72 | 59.1 (Neutral) |
| Natural Gas | $3.13 | +0.35% | $7.83 | $2.62 | 41.7 (Neutral) |
| Corn | $429.25 | +0.12% | $453.00 | $368.75 | 48.2 (Neutral) |
| Coffee | $290.45 | -3.13% | $437.95 | $283.65 | 23.7 (Oversold) |
| Cocoa | $3870.00 | -5.66% | $10531.00 | $3863.00 | 28.6 (Oversold) |
Best Performer: Cotton
Cotton is currently trading at $63.77, showing a neutral trend with an RSI of 54.03, indicating neither overbought nor oversold conditions. The price is above the 21-Day MA ($63.48) and 50-Day MA ($63.62), suggesting short-term bullish momentum, while still below the 200-Day MA ($64.82), indicating longer-term weakness. Key resistance is at the 200-Day MA, while support can be found at the 21-Day and 50-Day MAs. The MACD at -0.50 signals bearish momentum, but its proximity to the zero line suggests potential for a reversal. Overall, the short-term outlook is cautiously optimistic, contingent on breaking above the 200-Day MA.
Worst Performer: Cocoa
Cocoa is currently in a strong downtrend, trading at $3870.00, significantly below all major moving averages (MAs), indicating bearish momentum. The 21-Day MA at $4467.24 acts as immediate resistance, while the 50-Day MA at $5273.20 and the 200-Day MA at $7235.82 represent further resistance levels. The RSI at 28.56 suggests that cocoa is oversold, potentially signaling a short-term rebound, but the lack of bullish momentum confirms ongoing weakness. The MACD at -379.53 reinforces this negative momentum, indicating further downside potential. Overall, while a short-term bounce may occur, the prevailing trend remains bearish until a decisive break above key resistance levels.
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