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Green day for energy gives good push to cotton
25 Jan '08
2 min read
A green day for the grains, energy and metals gave cotton a good push higher as we continue to hold the lows made two weeks ago. Corn and soybeans closed very strong as well as a positive day in the stock markets in Europe as well as the U.S. gave cotton a boost as well.
We continue to bounce between 67/70 cents as the specs have had us on a very volatile pattern over the last two weeks. Volume was strong again today with 38,000 futures and 18,000 options as we continue to follow the commodity complex up and down.
Export sales are released tomorrow and we are expecting an average report of 200k in sales and 200k in shipments. This will change next week as we have been getting strong inquiries after the dip in NY and will continue to see good demand if NY stays in this range.
The recovery in the stock market will also have a big impact on nearby prices for cotton, but we are approaching Chinese New Year which usually generates some pre holiday business, but leads to an extended break in inquiries.
Obviously, the technicals are holding the low at the 50-day moving average. After seeing the stock market hold its gains from yesterday and move almost 1% higher, it looks like the market is happy with the stimulus package proposed and the confidence further rate cuts are in store.
The key now will be how the commodity markets rebound after breaking off the highs and if they will continue higher with the stabilized equity markets.
Demand remains weak and there are rumors that China may take additional holiday time in addition to the week of Chinese New Year.
Click here to view more:
We continue to bounce between 67/70 cents as the specs have had us on a very volatile pattern over the last two weeks. Volume was strong again today with 38,000 futures and 18,000 options as we continue to follow the commodity complex up and down.
Export sales are released tomorrow and we are expecting an average report of 200k in sales and 200k in shipments. This will change next week as we have been getting strong inquiries after the dip in NY and will continue to see good demand if NY stays in this range.
The recovery in the stock market will also have a big impact on nearby prices for cotton, but we are approaching Chinese New Year which usually generates some pre holiday business, but leads to an extended break in inquiries.
Obviously, the technicals are holding the low at the 50-day moving average. After seeing the stock market hold its gains from yesterday and move almost 1% higher, it looks like the market is happy with the stimulus package proposed and the confidence further rate cuts are in store.
The key now will be how the commodity markets rebound after breaking off the highs and if they will continue higher with the stabilized equity markets.
Demand remains weak and there are rumors that China may take additional holiday time in addition to the week of Chinese New Year.
Click here to view more:
ECOM USA Inc
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