Home / Knowledge / News / Textiles / Market closes 45 cents lower in Chicago
Market closes 45 cents lower in Chicago
Feb '08
The acreage report came out after the close on Friday and this added to the negative S&D report which forced the market lower and triggered some fund sell stops. Open interest remains near the top of the range, but cert stocks continue to grow and demand is weak.

Along with higher world ending stocks and the first drop in Chinese consumption in over 10 years, the cotton prices were unable to hold the lows of the current range. However, even with close to 70,000 futures and 27,000 options, the market managed to close in the 67/70 cent range which has held together for several sessions.

The spec hedge report will be delayed until Wednesday after the options expiration, but we are not expecting any bullish numbers coming out of the reports this week. The weakness today was also seen in the grain markets as we finally topped out in wheat after 4 limit up moves in a row.

The CFTC was forced to make an emergency move on Friday to increase the daily limits from 30 to 60 cents which we managed to hit overnight. However, even though the market was trading much higher synthetically on Friday, the market found some profit taking today and actually closed 45 cents lower in Chicago.

This along with a drop in soybeans and corn allowed cotton to take into consideration the higher than expected 08/09 acreage number (9.54 ma) as well as the increase in ending stocks to test the downside.

The NCC planting intentions survey number was down only 12%from 2007, but some market players had expected a lower number to help the market break upwards. Since this did not happen, the market failed early and managed to break some key support lines under 67 cents. We did close above this level as we ran into good scale down trade buying under 66.50 and bounced back close to 68 before closing weaker.

Fund rolling will continue with only 8 trading days before FND, and unless there is a stopper, we may continue to test the downside.

Click here to view more:


Must ReadView All

Textiles | On 25th Oct 2016

Arvind to dilute 10% stake in brand business arm

Arvind Limited, one of India’s largest integrated textile and apparel ...

Courtesy: Commonwealth Bank of Australia

Textiles | On 25th Oct 2016

World’s first cotton shipment using Skuchain’s Brackets

The world’s first trade transaction involving shipment of cotton...

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Silvia Venturini Fendi
Fendi s.r.l

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

Mike Hoffman
Gildan Activewear SRL

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

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


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search