Home / Knowledge / News / Textiles / Cotton market to grind lower
Cotton market to grind lower
30
Apr '08
Grains were mixed overnight and cotton found little support as it worked under 71 cents. Grains opened the day lower and after a short term bounce, cotton fell to the lows of the day and started to touch key support levels at 70.50. We are very close technically to a bearish picture in cotton.

If N'08 can break 70 cents, we will have a negative technical picture but the fundamentals should look better with increased demand.

Open interest continues to fall gradually and the cert stocks are rising. We are also seeing some other technical weakness in other commodities while the stock market is holding up and the dollar is also showing some strength.

We have the Federal Reserve meeting tomorrow where we are expecting a 25 point cut to 2.00% and possibly a pause in the future on any more cuts. This may lend some much needed support to the dollar which may have a negative impact on commodities over the long term.

We are in a negative seasonal pattern as we approach the large Northern Hemisphere plantings. We have good conditions in the Memphis Eastern areas while beneficial rain has been reaching the much needed West Texas area. The cotton market feels like we could move lower short term with some good buying opportunities if the demand picks up.

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 buy dips under 70 cents. The entire commodity complex feels weak at the moment and we will have to keep a close eye on changes in open interest.

Click here to view more:

ECOM USA Inc


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Mandeep Nagi
Shades of India

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

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Mark Paterson
Technical Absorbents Ltd

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

Kevin Nelson
TissueGen

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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