Home / Knowledge / News / Textiles / Cotton trade in a very narrow range
Cotton trade in a very narrow range
31
Jan '08
Cotton traded in a very narrow range most of the day as we waited for the Federal Reserve announcement to give prices some direction. Expectations were met with a 50 basis point cut in the Fed funds rate and the discount rate.

This immediately sent stocks higher after trading sideways to lower most of the day. However, after more than a 200 point turn around, the market closed lower on the day with some late profit taking.

We are starting to form a strong resistance line in the Dow above 12,500 as we have failed to close above this level since the sell off last week. Cotton traded on light volume most of the day with 25,000 futures and 9,000 options.

Cotton did manage to close near the highs as soybeans were up as well, but corn and wheat closed lower. The weak close in the stock market could have a negative effect on the foreign markets overnight and may add pressure to commodity prices.

However, the export sales report should be strong tomorrow, but the shipments will probably remain average as we are expecting sales between 400-500k and shipments between 150-250k.

The big news continues to be the bad weather in China which is weighing on the power grid and has many mills projected to be off line for extended periods of time. Cert stocks rose back above 500k today with 50k awaiting review and open interest rose slightly back near 270,000 contracts.

RSI is near 50 and prices are holding the low at the 50-day moving average near 67.00 as this trade channel should hold up short term.

The grains and other commodities are finding some strength along with a weaker dollar. U.S. stocks tried to rally on the positive news reported by the Fed, but we are still in a bear market as Asia and Europe have also been struggling to rebound after last weeks correction.

It appears the housing market slowdown and the fears of recession will be enough to keep a lid on the markets short term.

Click here to view more:

ECOM USA Inc

Must ReadView All

Apparel/Garments | On 10th Dec 2016

Amazon India aims to be India’s biggest fashion retailer

Since fashion is the second biggest ecommerce category in India,...

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Ashok Desai
Bombay Textile Research Association

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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