Home / Knowledge / News / Textiles / Good volumes in cotton market
Good volumes in cotton market
21
May '08
Cotton started out the day on a positive note as a fresh monthly high was made when options opened at 7:15 CST. Friendly options and good volume contributed to help cotton break through the long standing resistance at 72.43 that was established on May 1st. The market eventually ran out of steam despite a weak dollar and strong oil prices.

Volume was good today with 32,000 futures and 19,000 options, but eventually grains came off and gave back the gains and then some. Basically, demand has gotten quiet again and planting conditions are friendly this week so it is just hard to sustain much of a rally.

We touched the top of the downtrend line today starting from the peak set on march 4th at 72.70. If this line of resistance holds up, cotton may be forced to trade in a narrow range between 70/72 until we get closer to FND for options.

The strike prices with the highest open interest near the money can be found at 70/75 which will also serve as resistance and support, but the majority of influence will continue to come from the grain markets and how well they do at going higher in the short term. We may continue to trade sideways as positions get squared going into the long weekend.

Cotton needed a rally after failing repeatedly to break through support at 70 cents. However, we are seeing good scale up selling and lack of new money to try and push cotton through the resistance found near 73 cents.

Demand is still hand to mouth andthe board is paying merchants to hold cotton with spreads from N'08 to H'09 as wide as 14 cents! That equates to 175 points a month and is the result of record cert stocks approaching 1.5 million bales and growing.

Volatility has also taken a hit and with July FND approaching, we may see open interest also fall back below 250k. Cotton will most likely trade sideways until options expire.

Click here to view more:

ECOM USA Inc


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Larry L Kinn
Suominen Corporation

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ritu Kumar
Label Ritu Kumar

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

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...

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