Home / Knowledge / News / Textiles / Cotton market expects to gain few points
Cotton market expects to gain few points
04
Mar '08
Ironically our first 100% electronic day did not waste anytime and was already locked up across the board in the early morning. We have been at these lofty heights only twice in the last 10 years and both times the stay was short lived. However, this time there seems to be a different driver behind the wheel and this guy does not look like he will be slowing down anytime soon.

We actually traded between 5-6 cents higher than the limit synthetically with Z'08 reaching above 95 cents and the spot month K'08 having a 9 on it! Futures volume was modest with only 20,000 contracts due to the market being locked up the limit, but options made up some of the slack with 100,000 contracts!

Open interest has broken 300,000 contracts and set a new record high, but the spec long position actually came down to only 22.7%.from 28.6% last week. Some of that was related to the higher open interest, but it also shows the commercial accounts are having to lift hedges in order to avoid rising margin calls.

Along with strong overnight prices in energy, metals and the grains, cotton had very few sellers as we are already playing catch up with the overbought commodity complex. The only difference tomorrow in cotton will be an expanded 400 point limit since the two largest open interest contracts closed above 84 cents.

The market has entered a period with all buyers and no sellers as we have shattered any type of nearby technical resistance and are trading in new territory. The upside momentum continues higher and we do not see a jump off point unless grains and the rest of the commodity complex takes a breather.

After the stock market closed weak again today and we continue to see rising signs of inflation and signals of a weak U.S. economy, there is no doubt the commodity complex will be an attractive market to invest money which should continue to fuel this rally.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 22nd May 2017

GST to be biggest achievement of Modi govt: ASSOCHAM

Goods and Services Tax (GST) which is near a roll-out would be the...

Textiles | On 22nd May 2017

Maintaining NAFTA benefits is crucial: Cotton council

The US must remain a participant in a vibrant North American Free...

Apparel/Garments | On 22nd May 2017

Retailers ask Congress not to go for consumption tax

The National Retail Federation has asked US Congress to focus on...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

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...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Tony Ward
Tony Ward

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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:
May 2017

May 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