Home / Knowledge / News / Textiles / Cotton trades lower
Cotton trades lower
06
May '08
Cotton traded lower today on light volume as the market is looking for some more information to build a case for where the market should go in the short term. Fundamentally, business has picked up but mills are not chasing the price. After the initial business began last week, and the market did not run away, mills are now backing away which could be bearish short term.

Technically, there is no real level of support on the N'08 chart until we test the 66.13 low. Also, outside grain markets are not supporting cotton as they also were down today and have been slipping lately. Volume was very light today with only 8,000 futures and 10,000 options.

Cert stocks continue to rise rapidly with now over 1.23 million bales with 150k awaiting review. Spreads are still very wide on the board going forward which is confirming a lack of demand for the front month and the open interest in cotton has been under pressure ever since it peaked during the volatile run at the end of February.

Energy and metal prices were firm as oil set a new record today breaking 120 usd/bl while the dollar fell under pressure and the stock market gave back gains from last week. In the short term, we will have to keep an eye on the outside markets in grains and any changes in open interest as cotton tries to find a bottom.

We are in a negative seasonal pattern as we approach the large Northern Hemisphere planting period. Technically, we broke the strong support line at 70 cents in N'08 last week. The next strong line of support can be found at 66.13 but it may avoid testing until closer to FND in June.

The cotton market feels like we are trying to put in a short term low near 69 cents as we have had two inside trading days in a row as we are starting to create a flag pattern which could break later this week. RSI is staring to show an oversold level in the low 30's, but we are still very influenced by the grain markets and they are currently going lower.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 26th Apr 2017

Kering's consolidated revenue growth rises 31.2% in Q1

The consolidated revenue growth for luxury group Kering for the first ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Textiles | On 26th Apr 2017

Gap, Athleta to increase use of sustainable fibres

Gap, one of the world's most iconic apparel and accessories brand and ...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Smita Murarka
Amanté

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

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Giorgio Mantovani
Corman S.p.A

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

Larry L Kinn
Suominen Corporation

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

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Madhu Jain
Madhu Jain

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

Sonam & Paras Modi
SVA

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

Karan Arora
Karan Arora

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

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
April 2017

April 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