Home / Knowledge / News / Textiles / Cotton market stabilizes after a wild week
Cotton market stabilizes after a wild week
Mar '08
The more things change the more they stay the same. After one of the craziest weeks in cotton prices since the Civil War, the spot month has returned to the previous trading range after a wild week of limit moves up and down. The synthetic close today was 100 pts lower @ 76.25 which could lead to more weakness tomorrow as N'08 also settled lower than the limit at 78.56.

The spreads have started to widen significantly as the Z'08 is not as weak and we are looking at well over 100 pts a month to carry the cotton out till December. It looks like the trade shorts are still licking their wounds from earlier this week but have no intention of buying back K'08 shorts and will be happy to deliver cotton to the board instead.

Volume has come back to normal with only 25,000 futures and 60,000 options as we began the week almost in the same trading range as the week before with only a spike on the chart to remind us of the rally.

An article Friday in the Wall Street Journal expressed how some hedge funds have been under pressure to reduce positions recently as lenders are being squeezed by the growing problems in the home equity market and rising foreclosures.

This rumor is reinforced by the recent behavior in soft commodities including cotton, sugar and coffee which are now down 15% from the inflated highs. There seems to be a profit taking mentality in the commodity complex which is adding to the nearby weakness and may continue this week as thespec long position fell to 18.3% from 22.7% last week.

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

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

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

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Giorgio Mantovani
Corman S.p.A

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

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

Sonam & Paras Modi

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

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search