Home / Knowledge / News / Textiles / ICE Cotton ends week on weak note
ICE Cotton ends week on weak note
Jan '14
ICE Cotton (H4) ended the week on a down note, losing 110 pts today to settle at 82.94. Volume picked up in the first two trading sessions of the year, and talk in the market was of index fund rebalancing which is negative for cotton (-7% of OI); weak export sales; and falling basis levels.

The latter two are perhaps not surprising given the market’s nearly 10 cent rise off of November lows. The H/K spread is trading near even, yet many expect an invert to appear in order to attract bales to the board for March delivery (easier due to new exchange rules).

The US balance sheet appears tight going into Q3 as well given robust export sales in Q4 2013 and healthy domestic mill demand. All in all, the season thus far appears to be almost a perfect repeat of the 12/13 season.

2013 was a great year for US equity (S&P +30%) and housing markets (+14%), while a down one for Treasuries (10-year yields up 127bp) and commodities. Within commodities were mixed performances, with the energy complex mostly holding firm and most grain markets seeing losses.

Cotton, of course, gained 13% for the year although it certainly didn’t feel like an up year as bearish talk about Chinese reserves dominated conversation yet again; something that doesn’t look to change in 2014. Going forward, investors expect renewed USD strength and higher yields as the Fed winds down asset purchases and the economy enters full-blown recovery.

At the same time, investment money is coming out of commodities as analysts predict an end to the super-cycle and a return to trading based on individual product fundamentals. This should create bargain buying opportunities in some markets in the coming years, as low prices start to cure low prices.

Banks are largely being forced out of physical trading in the US due to Dodd-Frank, while foreign banks and private trade houses look to fill the void, ensuring continued tough competition in commodity markets.

Ecom USA

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Nuno Venda

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

Kerem Durdag
Biovation II LLC

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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