Home / Knowledge / News / Textiles / Rally in cotton quite impressive
Rally in cotton quite impressive
05
Jan '08
NY futures continued to rally over the holiday period, as March gained 254 points to close at 68.71 cents, while December'08 advanced 266 points to close at 76.46 cents.

The New Year started with a bang for commodities, as a flood of new investment money poured into commodities and lifted the CRB index to an all-time high of 368.61 in the last two sessions, nearly 2% above its previous record. The rally was broad-based, with most commodities benefiting to some degree from this ongoing asset-allocation shift.

Yesterday's rally in cotton was quite impressive, not only because there was plenty of volume behind it at 36'000 futures and 24'000 options, but also because open interest jumped an astonishing 10'137 contracts to 24.2 mio bales.

This means that open interest is once again closing in on its record level of 25.1 mio bales set on November 8. By comparison, open interest a year ago amounted to 'just' 17.0 mio bales.

Speculative buying has clearly been the driving force behind this four-week rally from 63.00 to 69.00 cents and in the process outright spec longs have increased their holdings by about 2.0 mio bales to 12.0 mio bales as of last Friday, while spec shorts have covered around 1.3 mio bales over the last three weeks and are now just around 6.1 mio bales short.

The resulting 5.9 mio bales spec net long position amounted to 25.5 percent of open interest and leaves a lot of room to grow if we go by historical standards.

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Urs Stalder
Sanitized AG

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

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Prathyusha Garimella
Prathyusha Garimella

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

Silvia Venturini Fendi
Fendi s.r.l

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search