Home / Knowledge / News / Textiles / Cotton acreage likely to get bullish - USDA
Cotton acreage likely to get bullish - USDA
26
Mar '08
Cotton followed grains higher again as the U.S. dollar took a big hit after bottoming out last week. Most of the commodities were stable to higher as the stock markets were up strong in Asia and Europe overnight. After quite a big pull back in the soft commodities last week, the markets bounced hard of the long term uptrend channel and may have some more room to test the upside.

Most longs are comfortable to wait for next weeks cotton acreage estimate by the USDA for the 08/09 crop which could be bullish. After that is established, we still have a very bearish fundamental picture to work through in cotton and if the market rallied higher we would expect good resistance in the spot month above 80 cents.

Demand at 70 cents and below is good but this bounce is more off of technical support along with other commodities which both locked up the limit today. After such a strong correction back to the previous trading range, there is little resistance above the market nearby which can prevent this market from going higher.

The trade and commercial positions will be less likely to sell into rallies after what happened at the beginning of March and but we did have falling open interest yesterday on a limit up move which shows more of a reduction in shorts than new longs which does not confirm a change in the downtrend momentum.

Technically, the RSI is near 40 and not showing oversold levels. We are seeing some resistance in the K'08 at 75 cents andwill have to see if we can break that level tomorrow and go higher.

If this market stalls and tries to come down after next weeks acreage report, we would be dangerously close to crossing the 9 and 50 day moving averages which would be very bearish and could violate the long term upward trend channel. Other commodities will be very important short term to the continued testing of the upside in cotton.

Click here to view more:

ECOM USA Inc

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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
January 2017

January 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