Home / Knowledge / News / Textiles / Funds buying activities pushes market trade
Funds buying activities pushes market trade
08
Jan '08
Monday ICE was called to open around 10 to 15 points lower. Some bearish options were seen on the open, as some puts were bought, some calls were sold and some call spreads were sold. Market was then traded at the upper side of today's trading range, pushed by funds buying activities. Trading range was narrow at some 60 points across the board.

Grains were overall trading lower towards the end of the session, but had little effect on the cotton market. To everyone's amazement, cotton closed up strong today. Traders are apparently waiting for the USDA report to be released this coming Friday. Little changes are expected on the U.S. number, however, market is concerned that acreage will see further reduction in 2008.

Today's Spec Hedge report gives the market a net long position at 27.10%, up from 25.50% the week before. Open interest was increased by nearly 14,000 contracts last week to 245,500 as of Jan 4th. We are not that far away from the record high open interest of 251,500 as of beginning of November 2007. As specs are increasing their investments in cotton, demand is too weak to move the market.

Technically, we continue the upside trend line but trading sideways in correction of the market. Resistance at 69 cents on March contract is proved to be firm, as today's market challenged this level at the high but failed to break though.

As no fundamental news is around to trade on and as long as outside commodities markets continue to be strong, cotton might feel the pressure to follow.

We also have to consider the impact of the overall economic situation on the cotton market, since a likely recession is constantly in everyone's topic. We expect to see market trading range bound for the upcoming sessions in search for direction.

Click here to view more:

ECOM USA Inc


Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Urs Stalder
Sanitized AG

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

news category


Related Categories:
July 2017

July 2017

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

SUBSCRIBE


Browse Our Archives

GO


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