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

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Dinaz Madhukar
DLF Emporio and DLF Promenade

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

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Marten Alkhagen
Swerea IVF AB

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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:
May 2017

May 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