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

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Suresh Patel
Sidwin Fabric

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

Marten Alkhagen
Swerea IVF AB

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

Johan Berlin
InvestKonsult Sweden AB

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Jay Ramrakhiani
Occasions Elegance Wear

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

Karan Arora
Karan Arora

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

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search