Home / Knowledge / News / Textiles / Cotton market consolidates position towards weekend
Cotton market consolidates position towards weekend
29
Mar '08
We opened overnight slightly higher, but found good selling pressure all day long as the beans and grains opened lower along with bearish options. We are now at a very critical price level where physical business can be generated, but this will soon dry up if mills feel like there is a chance for the market to go lower. Funds have been lifting long positions each week on a consistent basis as the market just does not have that same downside support like the first of the year.

Monday brings an end to this volatile first quarter and we may be in for further profit taking as we continue to see light volume, falling open interest and lower volatility. Futures were estimated at 25,000 lots with 19,000 options as the market consolidated positions heading into Monday.

The big news will be how the USDA divides up the 08/09 acres. However, the growing sentiment is that cotton will not lose more acres to the competing crops and we should have a number near 9.5 million acres which is only 12% less than last year. Taking that into consideration we may have a crop for 08/09 between 16/17 million bales depending on the abandonment and yields. Based on growing stocks to use ratio for 07/08, the picture for cotton does not look as optimistic as it did and we are feeling like the funds are taking ammunition away from beans, wheat and cotton and focusing more on corn.

Technically, we crossed the 9 and 50 day moving averages which may lead to more testing of the downside. This could lead to some technical sell signals and with growing cert stocks and falling open interest, we could break the long term upward trend channel just below 69 cents. The hedge funds may take some more profits at the end of the quarter which is bearish. The commodity complex is trying to establish a bottom after some big pulls backs recently, but we may have to test the lows a few more times before we can make a solid rebound.

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Mohammad Hassan
Biax Fiberfilm

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

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Karan Arora
Karan Arora

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing 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
March 2017

March 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