Home / Knowledge / News / Textiles / Cotton market sees a fair stability
Cotton market sees a fair stability
25
Mar '08
After a long Easter weekend, the market started off quietly higher overnight but built up into another limit move as we tested the highs set on Thursday's bounce off the limit down lows. We continue to see good volatility although volume is slowing down with only 26,000 futures and 21,000 options.

We bounced pretty well off some good long term support last week and may have established a short term low. We are approaching a big acreage estimate by the USDA next Monday and the market may want to wait for that number before we make any retest of the downside.

Business was evident over the weekend and the grains had a nice correction which helped feed the rally in cotton prices. The spec long position only came down slightly after a big sell off last week to reach 11.9% on falling open interest which you can see on page 2 in attached PDF.

We may be setting up for a 70/75 cent trading range on the front month as we continue to see growing cert stocks and a growing spread between K'08 and the back months. Technically, we have RSI near 40 and all other signals were showing an oversold market after almost a 10 cent pull back last week.

Technically, we are heading to the oversold area with RSI below 40%. We are back to where we were before the market ran up and created the island top. The futures might finally attempt to settle down to reconnect with cash market, and the fundamentals might eventually come back into play.

We're now at a level that some mills are willing to consider purchasing for their inventories. Despite the overall sell off in commodities, cotton market is holding fairly well. Also the acreage report is due in a week, which might give the market some support.

Click here to view more:

ECOM USA Inc

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Pranav Mishra
Huemn

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

Ritu Kumar
Label Ritu Kumar

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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