Home / Knowledge / News / Textiles / Cotton market bounces back strongly
Cotton market bounces back strongly
01
May '08
Cotton experienced a bit more action today as bearish options lead to early weakness followed by a strong bounce off of 4 month lows at 69.54 in N'08. The day started out on light volume awaiting a predictable Federal reserve report at 1:15 CST, but the stock market was trading at 2008 highs and the stage was setting up for pull backs across the board in commodities.

All the grains as well as other commodities took an early sell off, but did find some good scale down spec support on the lows as the stock market came off after the announcement. Volume in futures was 19,000 and 12,000 options as we look like a short term low may be in and possibly be setting up for a sideways trading range.

The Federal reserve made the 25 point cut, but did leave the door open for a possible pause looking forward to the next meeting set for June 24, 2008. Plantings for 08/09 are picking up and we now have 19% cotton planted which is slightly lower than the 5 year average.

Conditions are drying out up north for other commodity and looking good for cotton as we will have some seasonal pressure until mid to late May. The spec support showed up today on the lows, but we will have to analyze open interest tomorrow and see if there were any large increases as the short term picture for cotton still feels weak.

We are in a negative seasonal pattern as we approach the large Northern Hemisphere plantings to add to the fundamental weakness. Technically, we broke the strong support line at 70 cents in N'08 but did find good underlying buying and closed near the highs.

The cotton market feels like we could have set a short term low and may be ready to trade sideways until more information is uncovered. May 1st tomorrow is the International Labor Day everywhere except the United States. That should set us up for a quiet long weekend as we should see a similar sales and export report as the market will struggle to find momentum to make a run at the highs.

Click here to view more:

ECOm USA Inc


Must ReadView All

Courtesy: American Silk Mills

Textiles | On 18th Oct 2017

Sutlej Textiles adds American Silk Mills to its portfolio

Sutlej Textiles and Industries Ltd (STIL) has announced the...

Arvind Limited executive directors Punit Lalbhai (left) and Kulin Lalbhai explaining the project to Gujarat chief minister Vijay Rupani. Courtesy: Arvind Ltd

Apparel/Garments | On 18th Oct 2017

Arvind to set up mega apparel facility in Gujarat

Arvind Limited, one of India’s largest textile to retail...

Cotton stocks accumulating everywhere outside of China

Textiles | On 18th Oct 2017

Cotton stocks accumulating everywhere outside of China

Global cotton stocks outside of China are expected to rise by nearly...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Dinaz Madhukar
DLF Emporio and DLF Promenade

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Marten Alkhagen
Swerea IVF AB

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Sonam & Paras Modi
SVA

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

Anisha Chaudhari
Threads & Shirts

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

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

October 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
77.3%
No
13.6%
Skip
9.1%

Total Votes: 66

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
60.6%
No
28.8%
Skip
10.6%

Total Votes: 66

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
84.8%
No
10.6%
Skip
4.5%

Total Votes: 66

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
74.2%
No
12.1%
Skip
13.6%

Total Votes: 66


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