Home / Knowledge / News / Textiles / Cotton trades in narrow range due to weak exports
Cotton trades in narrow range due to weak exports
04
Apr '08
Very quiet day as the cotton market looks like it is happy to trade at these levels and start moving positions from May to July at the current spread of 350 pts. Cotton and grains were very quiet overnight and lead to a narrow trading range in New York and Chicago after weak export sales reports. There were rumors that China had purchased a large volume of cotton but that did not appear this week with only 250k in sales and the same in shipments.

We expect next week to be better, but we also have to digest the possibly bearish S&D report on Wednesday as well. Volume was light with the majority of the 20,000 futures involved in rolling from May forward as open interest in the spot month continues to fall steadily.

Options were only 10,000 contracts as the quiet day was another reminder that the market should trade in a fairly tight range as we approach options expiration next Friday. Most all the markets were quiet today as the main feature was a testimony by the Federal Reserve in front of Congress explaining the bail out of Bear Stearns and the possibility of more financial failures.

There is also a negative jobs report expected tomorrow which may weigh heavily on the stock markets and the dollar as commodities try to rally but seem to lack conviction. Business overnight had slowed down as mills seem to have covered what they need for nearby and are willing to wait for better prices.

Technically, we are starting to create a flag pattern with this sideways consolidation, but there is no reason to believe the downside testing is over. We still have the sell signal from the crossing moving averages and cotton broke the long term trend line.

We could continue to trade sideways short term, but based on the growing cert stocks and neutral grain prices, we don't feel there is a lot of upside potential unless we could break 74 cents. We are seeing a less aggressive start to the second quarter than we felt in the first as hedge funds are sitting on the sidelines at the moment.

Click here to view more:

ECOM USA Inc


Must ReadView All

Textiles | On 20th Sep 2017

India needs to double cotton farmers’ income: top official

India needs to double the income of cotton farmers and non-farmers...

Textiles | On 20th Sep 2017

Pakistan seeks more JVs with China: textile minister

The Pakistani Government wants to forge more joint ventures (JVs)...

Apparel/Garments | On 20th Sep 2017

Egypt’s garment exports touch $941 million in 8 months

Egypt's garment exports touched $941 million in the first eight...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kerem Durdag
Biovation II LLC

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

Marten Alkhagen
Swerea IVF AB

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sonam & Paras Modi
SVA

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

Sanjukta Dutta
Sanjukta's Studio

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

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search