Home / Knowledge / News / Textiles / NY Cotton Futures show mixed trends this week
NY Cotton Futures show mixed trends this week
May '14
After closing at a 26-month high of 94.75 cents earlier this week, the July contract wasn’t able to maintain enough upside momentum to keep this breakout attempt going and was eventually forced to pull back into the 90 to 94 cents range, where it has spent most of its time trading since early March. 
What’s remarkable is that open interest in the spot month has continued to increase, even though there are only about 6-1/2 weeks left until July enters its notice period. There are currently over 122’000 contracts still open in July, more than in any of the previous five seasons at this date. Obviously neither spec longs nor trade shorts are inclined to exit their positions at this point, although considering how little US cotton remains available, the specs seem to hold the stronger hand in this game.
The trade is obviously trying to force the market down, be it by using the certified stock as a deterrent or by spreading rumors about impending export cancellations. While the certified stock may ultimately be able to collapse the inversion between July and December, unfortunately most of the current shorts won’t be around to benefit from it. Traders won’t know until the notice period whether the certified stock is actually going to be in play or not, and by then nearly all of the 12.2 million bales in open interest will already have been liquidated.
Rumors of US export sales cancellations proved to be just that, as last week’s export sales handily beat expectations with net new sales of 66’900 running bales for May/July shipment and another 152’500 running bales for August onwards. Shipments were once again strong at 227’200 running bales, thereby lowering the amount of outstanding commitments to just 1.68 million bales. We still maintain that we won’t see any significant cancellations in the weeks ahead based on whom these remaining commitments are owed to!
Export commitments for the current marketing year now amount to 10.2 million statistical bales, of which 8.4 million bales have so far been shipped. Commitments for the 2014/15-season are at 1.75 million statistical bales and we believe that at least 1.0 million bales of these sales will be supplied from existing inventories. In total we estimate that around 15.8 million bales in export and domestic commitments will be supplied from the 16.8 million bales that were available this season, leaving just some 1.0 million bales for sale at this point, including the 0.4 million bales of certified stock. This is definitely one of the tightest US balance sheets we can remember!

Must ReadView All

Textiles | On 20th Jul 2017

Provide safety net for cotton growers: Congress to Trump

A bipartisan Congressional coalition has called attention of...

Courtesy: ITMF

Textiles | On 20th Jul 2017

ITMF'17 themed on tech, trade, climate in disruptive times

The International Textile Manufacturers Federation (ITMF), an...

Textiles | On 20th Jul 2017

RIL’s Q1 FY18 petrochemicals revenue up 22.9% y-o-y

Reliance Industries Limited (RIL) has reported its financial...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Suresh Patel
Sidwin Fabric

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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


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

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