Home / Knowledge / News / Textiles / Cotton prices show an oscillating trend
Cotton prices show an oscillating trend
20
May '08
Despite cotton's strong close on Friday above key moving averages, prices labored in early trading. Bulls seemed to be kept at bay by an early morning order to sell 700 plus July showing on the screen at 7200.

Midmorning, after backing off only slightly, prices started to slip a bit and suddenly caught most traders off guard as sell stops were triggered finding a void of bids. Prices sold off 170 plus points from the early highs.

Exactly what prompted the sell off was not at all clear. Traders assumed weak soybeans, firm US dollar and favorable weather forecasts probably all played a part but the sell off was fast, furious and mostly technical.

One batch of sell stops when 7160 was broken but when the early morning lows of 7134 fell, prices dropped 100 points in less than 2 minutes. Buyers quickly tried to take advantage of the drop but for the most part were too late and were forced to chase values.

Prices spent the remainder of the session recovering the losses. Despite the fast, fleeting sell off, cotton futures settled only 4 to 15 lower on the day and within 9 to 15 points of their early highs.

Technically, buy stops will be found above the 7243 high of May 1st with sell stops below last weeks 6955 low.

The bottom line, is we are still stuck in the range of the last three weeks, but today's impressive recovery reinforces two points. First, the necessity for potential buyers to be ready at all times, having their orders in place or risk being left at the gate and secondly, that despite the bearish fundamentals, the bulls are not ready to give up and have the buy stops above 7250 in their cross-hairs".


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Sunil Rathore
Lacoste India

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

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marcel Alberts
Eurofibers

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

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

Ritu Kumar
Label Ritu Kumar

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

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:
June 2017

June 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