Home / Knowledge / News / Textiles / NY cotton futures steadily moves higher this week
NY cotton futures steadily moves higher this week
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

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


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