Home / Knowledge / News / Textiles / Cotton closes 50 pts higher
Cotton closes 50 pts higher
Jan '08
One word can explain what happened to the cotton market today.....CORN! The USDA reports were released today and as far as cotton, wheat and soybeans the changes were neutral to friendly based on the S&D numbers.

However, corn's world ending stocks fell almost 10% from last month and it was almost all related to the changes in the United States with cuts in production and rises in feed and domestic use contributing to lower ending stocks by over 9 million bushels or 25%!

Along with the President signing the new energy bill calling for higher levels of corn based ethanol and poor growing conditions in the Southern Hemisphere, corn locked up the limit (20 cents) on the open and was trading synthetically 40 cents higher than that in the options market.

Volume was above average with 48,000 futures and 46,000 options. The USDA cotton report was fairly unchanged and we attached a summary of the highlights on page 2. However, after two solid pull backs on weak fundamentals which created a negative technical picture, corn managed to drag everything to limit or near limit levels in cotton, soybeans (50 cents) and wheat (30 cents) with cotton actually closing 50 pts higher synthetically.

We are entering a new era of commodity trading and this can be contributed to several factors including the introduction of the ICE electronic trading platform which has exposed cotton to a new world of commodity hedge funds. The neutral to bearish fundamental picture in cotton is not able to resist the record breaking contribution from these new investors.

Must ReadView All

Textiles | On 22nd May 2017

GST to be biggest achievement of Modi govt: ASSOCHAM

Goods and Services Tax (GST) which is near a roll-out would be the...

Textiles | On 22nd May 2017

Maintaining NAFTA benefits is crucial: Cotton council

The US must remain a participant in a vibrant North American Free...

Apparel/Garments | On 22nd May 2017

Retailers ask Congress not to go for consumption tax

The National Retail Federation has asked US Congress to focus on...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Victor Chao

‘In future, clothing boundary lines will become increasingly blurred.’

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

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

Urs Stalder
Sanitized AG

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

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Pranav Mishra

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

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


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


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