Home / Knowledge / News / Textiles / Improving scenario helps ICE cotton trade firm this week
Improving scenario helps ICE cotton trade firm this week
05
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

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Paolo Ocleppo
Sandvik Hyperion

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

July 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

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

Yes No

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

Yes No

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


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



X