Home / Knowledge / News / Textiles / ICE Cotton gains over 400 pts this week
ICE Cotton gains over 400 pts this week
Mar '14
ICE Cotton joined the commodities rally this week by gaining over 400 pts to settle at 91.27 c/lbs basis K4. After several weeks spent trading in a narrow range, following a better-than-expected USDA export report on Thursday, which seemed to increase market participants’ hopes for a cut to US 13/14 ending stocks in Monday’s WASDE report, the market surged higher on rising OI. 
With many commodities cheap both in outright terms and relative to equities, a wave of spec buying entered the markets, benefitting commodities with tight paper balance sheets such as cotton. Yet, in actuality, the cash market is stalling and China will - regardless of additional quota, be it 4:1 or processing – fail to chase the physical market higher from here. At current levels, demand will be rationed. 
Therefore, one way or another, US cotton will flow to the board, narrowing the N-Z invert, since no stopper will emerge above 86-87 cents. Unclear, of course, will be the tipping point – the level is required to attract cert stocks - and when this will occur - before, or after, N4 FND.
US 2014 GDP estimates are being revised lower, with uncertainty as to whether the slowdown seen thus far this year was due to weather or something more worrying. The February jobs report beat expectations, while the unemployment rate climbed slightly. Tapering remains on track for now. 
The UK and EU central banks kept rates on hold, while Australia’s central bank softened its rhetoric regarding the AUD. The market seemed to move past conflict in Ukraine this week, and grains seem to have priced in more export problems than have actually occurred. China stuck to its pledge of 7.5% GDP growth at the annual NPC meeting, while other rhetoric potentially softened this to around 7.2%. Overall, risk is still on.


Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Smita Murarka

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

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

Jay Ramrakhiani
Occasions Elegance Wear

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search