Home / Knowledge / News / Textiles / Cotton trade in a narrow range
Cotton trade in a narrow range
29
Apr '08
Cotton traded in a narrow range on thin volume as we continue to follow outside markets. Grains were up overnight which gave support to cotton after several down sessions last week. However, other commodity reopened lower and put pressure on cotton during the day which returned back to the lows of the day on the close.

We did hear of some business being done overnight in China, but not the volume that will help propel cotton prices higher. Volume was only 14,000 contracts in futures and 5,000 in options as we had only 2500 contracts left in K'08 this morning.

After not finding any fireworks in the K'08 expiration, the open interest fell again on Friday to only 245k contracts and the specs today also showed a small reduction in their long position down to 10.3% from 11.1%.

It looks like the market is forming a sideways trade channel in N'08 between 71.50 and 73.50, but the upside feels limited unless we get a substantial increase in grains. Business remains hand to mouth and with cert stocks continuing to grow and stocks to use at record high levels, the cotton market does not have much to get excited about short term.

The false breakout on April 16th, which tested the high of 82 cents basis N'08 was followed by a profit taking sell off which has created the negative technical picture for the past sessions.

N'08 has been range trading and tested the short term support level at 71.25, which was touched on March 20th. The cotton market feels like we could move sideways short term with more down side testing in the future.

The next support lies at 70 cents, and with RSI at 40, there is a lack of buy signals. The general feel of the cotton market is to grind lower and look to sell rallies above 75 cents in July or 85 cents in Z'08.

Click here to view more:

ECOM USA Inc


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Mark Paterson
Technical Absorbents Ltd

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Urs Stalder
Sanitized AG

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sonam & Paras Modi
SVA

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

July 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

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

Yes No

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

Yes No

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


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



X