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: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Nitin Bhatia
Trend Arrest

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

Eric Scholler
Groz-Beckert

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Jay Ramrakhiani
Occasions Elegance Wear

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

Mike Hoffman
Gildan Activewear SRL

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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