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 20th Aug 2017

PetroVietnam, Vinatex discuss reviving PVTEX plant

Discussions are under way between PetroVietnam and textile and...

Courtesy: Mexx

Fashion | On 20th Aug 2017

RNF acquires Mexx fashion brand

RNF, the Dutch sports and fashion holding, has purchased the global...

Textiles | On 20th Aug 2017

Intertextile Shanghai Home Textiles opens on August 23

Intertextile Shanghai Home Textiles, Asia’s leading platform to meet...

Interviews View All

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

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...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Rupa Sood and Sharan Apparao
Nayaab

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

August 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
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

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
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

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
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

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
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


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