Home / Knowledge / News / Textiles / Cotton futures rebounds to finish with triple-digit gains
Cotton futures rebounds to finish with triple-digit gains
28
Apr '08
Cotton prices started the week under pressure but after four down days in a row and closing losses totaling over 500 points, cotton futures rebounded to finish with triple-digit gains Tuesday thanks at least in part to sharp advances in other commodities, a weaker dollar and sky rocking crude oil.

Cotton prices stabilized fairly well the middle of the week but clearly got caught up in a huge wave of general speculative selling in all commodities on Thursday when the US dollar demonstrated possible bottoming action for the second consecutive day.

An unnerving "contrary opinion" report early last week had indicated a gross imbalance of bearish sentiment concerning the US dollar. The theory of contrary opinion dictates that once everyone becomes bullish or everyone bearish as in this case, look out.

The report indicated far too many traders on the same side of the boat. Readers might remember that cotton registered a 90 percent bullish reading on March 3rd, right before the crash. Readings are never more bullish than at the top or bearish at the bottom.

Additionally, widespread publicity the last week or so on food shortages and rationing of rice at major discount stores helped put the "kiss of death" on the bull run on many commodities at least for this week. Those type stories, once they hit the cable news networks or national publications, often attract low quality, "Johnny-come-lately" buyers who are invariably under financed and very vulnerable.

As has happened so often, when they started to lighten, reduce or get out of positions, the door was too small. Case in point, the day the discount club announced their rationing of rice, rice futures went limit down.

Low exports and another depressing domestic consumption report did not help the bull case but still were not the primary reason for lower prices Thursday (Such as technical deterioration, the general meltdown in CRB and follow-through strength in the dollar).

Must ReadView All

Courtesy: H&M

Apparel/Garments | On 30th Mar 2017

H&M group's sales increase 7% in 3 months to Feb '17

The H&M group's sales including VAT amounted to SEK 54,369 million...

Textiles | On 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Textiles | On 30th Mar 2017

Lok Sabha approves 4 supplementary GST legislations

The Lok Sabha has approved four supplementary Goods and Services Tax...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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