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 30th Mar 2017

India Inc should work for July 1 GST roll out: Fin sec

The Goods and Services Tax (GST) will take India into a very exciting ...

Textiles | On 30th Mar 2017

Lok Sabha approves 4 supplementary GST legislations

The Lok Sabha has approved four supplementary Goods and Services Tax...

Courtesy: ShopKeep

Information Technology | On 30th Mar 2017

Shopkeep partners with software provider BigCommerce

ShopKeep, the cloud-based technology solution that transforms an iPad ...

Interviews View All

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Larry L Kinn
Suominen Corporation

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts
Eurofibers

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

Jay Ramrakhiani
Occasions Elegance Wear

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

Yash P. Kotak
Bombay Hemp Company

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search