Home / Knowledge / News / Textiles / Cotton market looks bearish
Cotton market looks bearish
14
Mar '08
The cotton market took a much deserved breather today as the volume came down to somewhat normal levels with only 20,000 futures and 50,000 options.

The market opened higher overnight, but gradually came off under bearish options and weak export sales that weighed on the market. We did manage to find support under 81.00 cents and held up better than yesterday by only going 150 pts lower compared to limit down.

Wheat and grains opened higher and tested the high from yesterday before coming off near the close which also weighed on cotton. Technically we are at new highs in wheat and corn, but soybeans have come off significantly from the 1570 high, but did close up on the day.

However, the fundamental picture for cotton is getting worse considering the inflating stocks to use ratio near 50% and the lack of demand looks like this downside correction is not over yet. The stock market managed to close firm as we get closer to the FED announcement next week to possibly continue cutting interest rates.

Export sales including Pima still were not able to break 100k and we shipped the same 4 week average 200k which would keep us from making the USDA target even after revisions earlier this week. With cotton at these levels, we also are hearing about more acres going to cotton and we still have the technical island reversal pattern hanging over the market.

Technically, the market is a real roller coaster and the fireworks don't look like they are going to stop anytime soon. However, if anything the last several sessions may have set up some extreme limits where we could trade short term. Currently we have a very bearish fundamental picture, but there seems to still be good spec and hedge fund buying which we found today.

The upside may continue to run into trade scale up selling as the trade try to limit downside exposure, as we are currently caught between two gaps at 75.12-75.28 and 83.75-85.28.

Click here to view more:

ECOM USA Inc

Must ReadView All

Apparel/Garments | On 23rd Feb 2017

NAFTA renegotiation puts Mexico-US jeans trade at risk

The almost imminent renegotiation of the North America Free Trade...

Rick Helfenbein (left), president and CEO of AAFA, with Juan Estrada, chief of party, Hub; Courtesy: Hub

Apparel/Garments | On 23rd Feb 2017

AAFA inks agreement for best manufacturing in East Africa

The American Apparel & Footwear Association (AAFA) has entered into a ...

Mango vice-chairman and member of the board of directors Daniel Lopez (L) with Ananth Narayanan, CEO, Myntra & Jabong. Courtesy: Myntra

Apparel/Garments | On 23rd Feb 2017

Mango awards distribution & management rights to Myntra

Mango, the Spanish fast fashion brand, has awarded its master...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

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

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Silke Brand-Kirsch
Schlegel und Partner

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

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

Tony Ward
Tony Ward

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

Judy Frater
Somaiya Kala Vidya

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

Sonam & Paras Modi
SVA

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search