Home / Knowledge / News / Textiles / Pull back in cotton market disorganizes trade
Pull back in cotton market disorganizes trade
19
Jan '08
Cotton pulled back today based on weak corn and beans as well as the worst weekly performance by the S&P index in 5 years. The concerns over the economy are having some impact on overbought commodities which do not have sustainable gains. We have managed to stay in the same 300 pt range all week after our limit up follow through move on Monday.

Volume was returning back to normal today with only 20,000 futures and 18,000 options as we increased open interest to over 280,000 contracts showing the willingness from the funds to keep adding on to their position.

We are heading into a long weekend where the market will be closed on Monday, but at the moment there seems to be good support at 70 cents where we may trade sideways in the short term waiting for opportunities to retest the highs. Some hand to mouth business has been uncovered on this pull back, but its obvious the mills are nervous and uncertain on how prices will behave long term.

With corn and soybeans struggling as well as the stock market having so much trouble lately, we may see an equity induced pull back across the board which may push cotton back into the upper 60's. We are very close to Chinese New year starting on Feb 7th, so hard to see any large demand entering the market over the next 4 weeks unless we sold off significantly.

Obviously, the technicals are still positive as we closed above the 9-day moving average, but we do have several over bought signals which may eventually break the funds and find some sell stops. 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 seeing the stock market reaching 15 month lows, it could be hard for the blazing hot commodity market to continue on this pace. Tuesday will be interesting to see after a long 3-day weekend.

Click here to view more:

ECOM USA Inc


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Top executives
Textile industry

The foremost issue is bridging the skill gap

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Lynda Kelly
Suominen Corporation

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

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...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Silvia Venturini Fendi
Fendi s.r.l

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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