Home / Knowledge / News / Textiles / Cotton volumes gets stronger
Cotton volumes gets stronger
29
Feb '08
Another crazy day as we traded in a volatile 300 point range testing the highs and lows. The real story is that commodity markets in general are getting flooded with new money which is fueling an irrational commodity complex trading on inflation fears and pulling cotton along for the ride.

The USD continues to slide to new record lows even though it managed to find some support for a few months, but now is in a free fall once again. This will certainly add even more optimism to the argument that commodities have further upside as soybeans broke through technical resistance and set a new high at 15.00 usd/bu.

Volume in cotton was strong again today with 35,000 futures and 35,000 options as we continue to see good fund buying under the market on dips. Export sales were less than expected at just over 200,000 bales which was well below last weeks number of 500,000. However, the shipments remain weak at 260,000 and this number is well below what we need to reach the USDA estimate.

This may lead to another cut in exports next month and possibly another bearish S&D report. We have FND on the CBOT tomorrow for grains and this might explain the volatile action in wheat down over 100 cents while soybeans were close to limit up. We are still in the fight for acres in the U.S. which will be announced by the USDA at the end of March.

Technically, we are running into some resistance targets above 80 cents in K'08. This cotton market is starting to enter overbought territory as we trade the top of the range in volatility, open interest, spec positions, cert stock and relative strength. General market mood is bullish on technicals and outside commodity markets.

We will have to see a pull back in the grains before cotton will have a chance to correct, but we seem to be carving out a possible sideways trading range between 77/80 cents. Demand will certainly slow down in the short term, but the direction of grains will have a bigger impact nearby.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 27th Apr 2017

Maharashtra govt working on second textiles policy

The textiles department of the government of Maharashtra is working...

Apparel/Garments | On 27th Apr 2017

EC takes action to make garment sector more sustainable

The European Commission (EC) has presented a set of focused actions...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Ashok Desai
Bombay Textile Research Association

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

Marcel Alberts
Eurofibers

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

Lynda Kelly
Suominen Corporation

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

Silvia Venturini Fendi
Fendi s.r.l

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Robert Brunner
Devereux

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

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

news category


Related Categories:
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



X