Home / Knowledge / News / Textiles / Cotton trades lower
Cotton trades lower
20
May '08
Cotton traded lower overnight on weak grain prices after closing strong on Friday. We continue to be range bound on light volume as the market is trying to grind higher. Cotton fell lower and tested the support near 70 cents.

This held up well and we eventually worked our way higher back to almost unchanged. The volume was light with only 12,000 futures and 8,000 options as open interest continues to grow slowly. We are still locked in the same range that we set back on May 1st from 68.52 to 72.43.

Volume is light and we are not getting the commitment from specs and sales have slowed down. If we cannot break through the upside resistance early in the week, we will probably see some squaring up of positions going into the 4 day weekend. Cert stocks continue to grow as we approach 1.5 million bales.

That along with the spreads in cotton creating the widest contango of any commodity, we continue to lean towards a range bound market. The spec long position went from 10.4 to 11% long and the RSI is at 48 so the signals continue to be neutral and not showing a clear direction.

Cotton market is still looking very fundamentally bearish as demand remains hand to mouth. We closed above the 9 day moving average and could be setting up for a test of the highs early this week. We first need to break the high set at 72.43 before we can pursue further upside targets heading towards significant resistance near 73/74 cents.

The dollar tried to bounce back today and the stock market made some gains as well. Grains and cotton may not have huge upside potential, but the downside also looks limited.

Click here to view more:

ECOM USA Inc

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Apparel/Garments | On 25th Apr 2017

Walmart's Project Gigaton to help reduce emissions

Walmart has launched a sustainability platform called Project Gigaton ...

Courtesy: Arvind

Fashion | On 25th Apr 2017

The Arvind Store launches ready-to-wear brand for men

The Arvind Store has announced the launch of its own ready-to-wear...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Marcel Alberts
Eurofibers

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Suresh Patel
Sidwin Fabric

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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