Home / Knowledge / News / Textiles / Export sales continue at a hand to mouth pace
Export sales continue at a hand to mouth pace
28
May '08
Cotton traded mostly unchanged overnight as there was some optimism after bouncing off the lows on Friday. However, it did not take long as cotton slid lower shortly after grains opened weak.

Along with a stronger dollar and stock market and oil running into good upside resistance, cotton ran through some sell stops and technical support. Volume was above average with 33,000 futures and 20,000 options as the market closed at limit down in the back months.

When we rallied early last week, the demand dried up and there was good scale up trade selling which would not allow the market to break the downside trend line. There is just a lack of buyers and we will have to find out at what level this will change.

Export sales continue at a hand to mouth pace, cert stocks are growing, planting percentage rose considerably last week and the commodity complex looks overbought and ready for a pull back. The spec long position came out today and fell to its lowest level since May last year of 7% compared to 11% last week (see page 2 in attached PDF). We may see a test of the downside by the specs which could cause the mills to pull back and really lead to some weakness in the short term.

Technically, the MACD crossed back down today and we are setting up to break a key support level at 66.13 set back on Dec 6, 2007. RSI is currently at 30% and the specs are down to 7% long. Open interest has gone up recently and the market has come down so we are definitely seeing some new interest from the specs to go short.

As demand remains hand to mouth and the trade are more vulnerable after the market spike in March, we may see more bearish options that could trigger new spec sell stops. If we don't get some stability out of other sectors in the commodity index, we could test lows in cotton 3-4 cents lower?

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mohammad Hassan
Biax Fiberfilm

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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:
May 2017

May 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