Home / Knowledge / News / Textiles / Market moves in right direction
Market moves in right direction
12
Jan '08
NY futures gave back some ground this week, as March lost 175 points to close at 66.96 cents, while December dropped 190 points to close at 74.56 cents.

The long awaited correction finally arrived and it was swift and steep, as March dropped nearly 300 points from yesterday's intra-day high of 69.65 cents. Earlier in the week, additional spec buying had extended the rally, which began on December 6, to nearly 700 points.

In the process open interest increased by over 50'000 contracts, as it measured a record 261'151 contracts or 26.1 mio bales this morning. But after the huge jump in open interest of over 10'000 contracts in Tuesday's session, the market seemed to be ready for a breather.

The market has been overbought by technical measures for quite a while and initially it may have been a void of additional buying that allowed this correction to unfold. However, when the market broke through the up-trend line this morning, selling pressure intensified and values caved in.

What may have added to the weakness over the last couple of days is the rebalancing of the two major commodity indexes, the S&P GSCI and the Dow-AIG. Every year, these two commodity baskets, which form the base for many of the commodity index funds that track them, rearrange the weightings of their individual commodities.

In the case of cotton, these adjustments amount to a miniscule increase in the S&P GSCI of about 0.02%, from 0.80 to 0.82%, while in the Dow-AIG cotton suffers a severe cutback of 0.48%, from 2.96 to 2.48%.

When we try to express that in terms of how many contracts will have to be bought and sold to account for this readjustment, we come up with about 800 contracts that have to be bought in the S&P GSCI, while it requires the selling of over 6'000 contracts in the case of the DOW-AIG.

Interestingly, the DOW-AIG readjusts its position during the monthly roll period between the 6th and 10th business day, which falls between the 9th and 15th of January. Therefore, it is quite possible that this rebalancing played a significant part in the selling we have seen over the last two sessions.


Must ReadView All

Courtesy: Business wire

Textiles | On 28th Jul 2017

Taiwan launches new products at Outdoor Retailer show

The Taiwan External Trade Development Council (TAITRA) hosted the...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Fashion | On 28th Jul 2017

Kering’s first half consolidated revenue up 28.2%

Kering has announced a consolidated revenue of €7,296.2 million for...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

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

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Lynda Kelly
Suominen Corporation

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

Marcel Alberts
Eurofibers

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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

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
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
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

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
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

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
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

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
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


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



X