Home / Knowledge / News / Textiles / NY cotton futures steadily moves higher this week
NY cotton futures steadily moves higher this week
05
Oct '13
Weather remained the dominating feature in the cotton market this week, as storms continue to threaten open fields all over the globe. A couple of days ago untimely rains fell in Turkey and over the coming weekend two tropical systems are expected to bring heavy rainfall to cotton areas in the US and China.

Tropical storm “Karen” is on track to make landfall somewhere along the Alabama coast on Saturday, bringing gusty winds and possibly heavy downpours to the US Southeast, all the way from Alabama to North Carolina. Unfortunately the system seems to be a slow mover and may get mixed up with a cold front moving in from the Rockies, which has the potential to produce quite a bit of rain.

On the other side of the globe we have Typhoon “Fitow”, which is forecast to make landfall in China’s Zhejiang Province on Sunday, bringing potentially torrential rainfall to cotton areas in Jiangsu, Anhui, Henan and Shandong. Some models predict 4-8 inches of rain near the coast and 2-4 inches inland, which may impact both yield and quality.

While crops can handle an isolated rain event, the market is afraid that a recurring pattern of wet and cool conditions could make it difficult to get these already late Northern Hemisphere crops off the field and it may also reduce the availability of high grades. That’s why the market is currently pricing in a ‘weather premium’, which will likely be there for another four to six weeks.

Another interesting feature this week has been the big increase in open interest, as a total of 23’298 new longs and shorts were added over the last six sessions. Total open interest amounted to 205’751 contracts as of this morning, the highest level since the failed breakout attempt seven weeks ago, when it reached 214’378 contracts on August 19.

While new shorts are probably linked to hedge selling by the trade (Brazil, Australia, on-call sales), we have some difficulty explaining the sudden jump in new longs. We can’t see any compelling technical reasons that would have prompted spec longs to enter the market in big numbers.

Trade short covering doesn’t seem to be a likely cause either, since that would have led to a decline in open interest, although it is possible that some of these shorts bought bullish options strategies to safeguard their positions in view of all these weather worries.


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search