Home / Knowledge / News / Textiles / Cotton manages friendly close
Cotton manages friendly close
16
Jan '08
After two crazy sessions of the market locking up the limit with electronic trade being suspended and record options volume trading synthetically, we returned to a fairly normal day. The market traded 30-40 higher over night and even went below unchanged early in the day, but did find support in H'08 near 71.00 and Z'08 under 79.00.

However, there was a collective pulling back today in all the commodities including the stock market, but cotton did manage to pull out a friendly close and leave speculation that the tops could be tested again. Volume was above average with 44,000 futures and 40,000 options as we wait to see if we can break through 80 cents on Z'08 and continue this rally.

After a 10 cent correction from the lows in early December, the market seems to be getting good hedge pressure for current crop as well as new crop. We will have to see if the specs have enough ammunition to break through this level, but we would expect they are over 30% long even with record open interest which broke 270,000 contracts after yesterdays record volume.

Export sales and shipments, may start getting better this week after the holiday break, but doubt we will see strong numbers any time soon with the market trading at these contract highs. The back months in wheat and soybeans were strong and this will be the key short term to see if cotton will stabilize or move higher.

Obviously, the technicals are still positive, but we do have the RSI back near 70 and the business remains weak. Fundamentally, there is no reason for the market to go higher, but we are in the middle of a fund driven spec rally which the trade are unable to control. After some weakness early in the day, it looks like we may be setting up for a short term sideways trading range between 71/73.

We could establish a short term flag pattern which will eventually break out to the upside or downside depending on where grains trade nearby.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Suresh Patel
Sidwin Fabric

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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