Home / Knowledge / News / Textiles / NY Cotton futures display mixed trends this week
NY Cotton futures display mixed trends this week
28
Mar '14
Although this week’s trading action may have felt like a victory for the bears, the chart reveals that the market has actually moved sideways in the last 15 sessions, with May closing in a tight range between 91 and 94 cents since March 6. This settlement of 92.56 cents sits right in the middle of this narrow band. 
 
Bulls and bears certainly tried hard to sway the market their way, as this week’s wild intraday swings illustrate. Monday’s low of 89.74 cents and Wednesday’s high of 97.35 cents produced a three-day range of 761 points and tripped up scores of nervous longs and shorts in the process. Volume was impressive as well, with a combined 123’600 contracts changing hands between Monday and Wednesday, before cooling off to just 17’400 lots.
 
Interestingly, despite all this heavy trading we didn’t see much of a change in open interest. Overall open interest actually increased by 389 lots to 184’162 contracts since last Thursday, indicating that there hasn’t been much liquidation yet. There was some position rolling though, as May open interest dropped 6’723 contracts, while July and December saw theirs increase by 4’983 and 1’400 contracts, respectively. 
 
Judging by the open interest we have to assume that the structure between longs and shorts has not materially changed this week. The net long is probably still equally split between index funds and spec longs, while the trade continues to carry a substantial net short, most of which is in current crop futures. 
 
We believe that this set-up is the main reason why the market has not caved in yet, even though it had every reason to do so after the weak session on Monday and then again on Wednesday, when May closed 569 points off its high. In both instances the market rebounded the next session rather than following through to the downside. The large trade short position provides ample support to current crop futures, as merchants continue to scramble out of basis-long positions (selling physicals/buying futures) and mills still had nearly 4.5 million bales to fix on May and July as of March 20. 


Must ReadView All

Courtesy: Fashion Revolution/Fashion Transparency Index

Apparel/Garments | On 23rd Apr 2018

Transparency helps in swiftly alerting brands

Disclosing key supplier, supply chain and operational information...

Japan’s clothing imports up 4% in fiscal 2017

Apparel/Garments | On 23rd Apr 2018

Japan’s clothing imports up 4% in fiscal 2017

Japan’s imports of clothing and accessories increased by 4 per cent...

Courtesy: Fashion Revolution/Fashion Transparency Index

Fashion | On 23rd Apr 2018

Top global fashion brands now more transparent

Fashion Revolution’s Fashion Transparency Index 2018 reveals Adidas...

Interviews View All

Top executives
Textile industry

Overall, Union budget 2018-19 is very balanced

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Giorgio Mantovani
Corman S.p.A

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth 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

Leave your Comments


April 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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

Active Poll

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

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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