Home / Knowledge / News / Textiles / Pressure on cotton prices this week - O.A. Cleveland
Pressure on cotton prices this week - O.A. Cleveland
28
Jan '08
The past week was an excellent lesson in human emotions, panic, economics, the global economy and protectionism. Just as the market often does…It gives the test first and the lesson afterward. Cotton and other commodity and equity markets came away a bit scarred, but still with a solid base of support for a promising year.

Cotton prices corrected after limit up moves two weeks ago with a limit down move. As stated two weeks ago, cotton prices are headed higher, but with some bloody street fights along the way. Too, the cotton market will remain subject to considerable volatility.

The pressure on cotton prices this week was associated more with the U.S. and global economies and with the other commodity markets more so than with actual cotton fundamentals.

The well documented bursting of the U.S. housing/financial speculative bubble months ago culminated with a panic in the Asian equity markets at the beginning of the week and sent the U.S. equity markets on a free fall. That free fall sparked a panic in the agricultural commodity markets as speculators pulled vast sums of money out of all markets due the panic in the equity markets.

The quick drop in grains and oilseeds sparked a corresponding drop in the cotton market as speculative funds exited the cotton market in mass-most likely the single biggest exit in a single day in the history of the Cotton Exchange.

The Weekly Export Report could almost be renamed to the "Weekly Bearish Report." Recall the massive sales recorded in last week's report, but with most going to Mexico, a captive U.S. market, the big numbers were meaningless. Net export sales for the week ending January 17 totaled a rather anemic 141,000 RB with Upland sales accounting for 108,400 RB and Pima sales of 32,600 RB.

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Paolo Ocleppo
Sandvik Hyperion

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

Marcel Alberts
Eurofibers

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sonam & Paras Modi
SVA

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, 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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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