Home / Knowledge / News / Textiles / Bearish USDA WASDE report pulls down NY cotton futures
Bearish USDA WASDE report pulls down NY cotton futures
12
Jul '14
The NY cotton futures market was down 394 points for the week from Monday’s 72.06 open to Friday’s settle at 68.12. Without a doubt the USDA WASDE report was bearish and the market took a quick dive once the report was released.

They finally made a sizeable adjustment to their numbers, something the USDA is not known to do, which better reflect the current situation in the U.S. Their current production number is 16.5 million bales for the U.S. crop, up from 15 million, and an ending stock of 5.2 million, the largest since 2008/09 if that number is reached. Their rest of the world ending stocks number was also up by 2 million bales.

With this news coupled with the fact that the market blew through the “resistance” at 68.25, producers are looking at prices close to production costs in some cases. The next level of support is around 66.00. More than likely, most farmers will not sell but use the loan to buy more time and hope for a better price.

However, at 52.00, could it make sense to sell now and buy some calls to take advantage of any market upside? Seems reasonable but that is not an easy decision for the farmer. In the U.S. they have access to all the potential subsidies, adjusted world price (AWP)/NY market spreads, etc. that could impact their final payments. Producers in other countries may need to think hard about the sell now buy calls, but they better think quickly.

ECom USA


Must ReadView All

Sri Lanka to set up 150 mini apparel units

Apparel/Garments | On 23rd Nov 2017

Sri Lanka to set up 150 mini apparel units

A mini apparel factory was opened recently at Sri Lanka’s Menik Farm...

Egypt keen to boost ties with India in MSMEs, textiles

Textiles | On 23rd Nov 2017

Egypt keen to boost ties with India in MSMEs, textiles

Egypt is eager to boost cooperation with India, particularly in the...

India begins review of anti-dumping duty on caustic soda

Textiles | On 23rd Nov 2017

India begins review of anti-dumping duty on caustic soda

The Directorate General of Anti-Dumping & Allied Duties (DGAD), under ...

Interviews View All

Veronique Lee
Modavanti

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

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urs Stalder
Sanitized AG

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

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

Silvia Venturini Fendi
Fendi s.r.l

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

November 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
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
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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