Home / Knowledge / News / Textiles / Market expects to shift from neutral to bearish today
Market expects to shift from neutral to bearish today
09
Apr '08
Tuesday session was generally weak but holding well considering the market anticipation of a bearish USDA S&D report tomorrow. Overnight ICE opened slightly lower and traded sideways in the early morning session. Chicago grains market opened at around neutral level from last night's close and gained slight margin during the session.

Cotton, on the other hand, traded steadily lower to create today's low at mid 71 cents on K'08 and lower 75 cents on N'08. Market then quickly turned direction on very light volume and gained part of the ground that it had lost. Some bullish options in the pit on December contract 90/110 call spreads also supported the bounce up movement.

The USDA S&D report to be released tomorrow morning is expected to be neutral to bearish. The general anticipation is in decreased U.S. exports and increased production numbers, which leaves a higher ending stock level.

The appreciating Chinese dollars are hurting the textile mill's profit margin, thus their ability to import the U.S. cotton, which is relatively more expensive than other growths. There is also news that production countries like Pakistan are working to improve their production ability. The effect of the report on the market, however, is uncertain, since NYF has not been trading on fundamentals.

Technically, we are trading in consolidation ahead of the USDA S&D report to be released tomorrow morning. Cotton offers have switched to N'08 and on the second day ofthe rolling by the large index funds, spread trading has dominated today's futures activities.

The N'08 chart on page 2 in attached PDF shows that we are still trading within the long term up channel. We could continue to trade sideways short term, but the growing cert stocks and neutral grains prices could add pressure to the market. The total cert stocks have reached just over one million bales including 81,000 bales awaiting review.

Click here to view more:

ECOM USA Inc

Must ReadView All

Courtesy: Kornit Digital

Textiles | On 28th Feb 2017

'Customisation is an advantage of digital printing'

Changing business models and companies' decision to reduce their...

Textiles | On 28th Feb 2017

China's textile & apparel exports up 10.2% in Jan 2017

Exports of textiles and garments from China resumed growth in the...

Apparel/Garments | On 28th Feb 2017

Delta Galil's Q4 operating profit jumps 80%

In the three months to December 31, 2016, operating profit at apparel ...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi
SVA

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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