Home / Knowledge / News / Textiles / Improving scenario helps ICE cotton trade firm this week
Improving scenario helps ICE cotton trade firm this week
Oct '13
ICE Cotton traded firmer with an improving technical picture and climbing open interest throughout most of the week, settling at 87.18. The market’s move higher, China’s holiday, continued uncertainty about cotton quality, and merchants’ unwillingness to commit specific qualities without a better feel for the crop have all served to limit additional physical business.

The uncertainty is hardly helped by the lack of government reporting on which the industry relies, and now the impending arrival of Tropical Storm Karen; many ag markets could be in for volatile trading when data releases return.

Add it all up and there are pressing supply questions, while firm demand below the market is well known. It is doubly surprising given all this that the Z/H spread has not inverted during the market’s rise from 84 to near 88 cents, and that some of the bales de-certed in July may re-appear for December delivery.

But before fundamentals push through the market has to first deal with uncertainty and the blow to confidence caused by the US government shutdown. While the direct economic impact of reduced government spending will only reduce GDP by several tenths of a percent, the knock-on effects to business and consumer sentiment could be much larger, and will grow the longer the shutdown goes on.

Gains in the housing market, which had recently strengthened, will likely soften. And of course, investors are most concerned with the US’ need to raise the debt ceiling by October 17th, failing which the Treasury would begin to default in bond markets.

Politicians are saying this won’t happen, but the seemingly hardening of positions in Congress and low expectations are hardly reassuring. Everyone agrees “tapering” is now off the table for the for-seeable future, which despite everything else may be the reason stocks and commodities are holding up fine despite the Beltway shenanigans.

Ecom USA

Must ReadView All

(L-R) Mr Shao Bojin, Chairman of Jihua Group and Mr Rohit Aggarwal, President of Huntsman Textile

Textiles | On 28th Oct 2016

Huntsman gets into strategic partnership with Jihua Group

Huntsman Textile Effects, the leading provider of high quality dyes...

Marzoli FT6D roving frames in Sintex’s Unit 2. Coutresy: Marzoli

Textiles | On 28th Oct 2016

Marzoli roving frames erected at Sintex textile division

A total of 48 Marzoli roving frames were erected in units I, II and...

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Steve Cole
Xerium Technologies

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search