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 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Eamonn Tighe
Nature Works LLC

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search