• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Cotton futures keep trading lower

04 Jun '08
2 min read

Another weak session in NYF cotton as we saw strong U.S. dollar and overall weakness in the commodities markets Tuesday. Cotton futures kept trading lower as we broke several key technical support levels late last week. Technical related selling as well as weaker outside markets and bearish fundamentals all confirmed cotton's downside movement.

Early morning options trading were featured by large volume of bearish activities which included Z'08 70 cent put buying at 450 points, Z'08 68 cent put and 88 cent call bear fence at 180 point debit for the puts, and U'08 81 cent call selling at 120 points.

All months traded sharply lower upon Chicago grains market re-open, and a loss of over 230 points was posted when N'08 reached the low of the day at 63.10. Cotton eventually regained part of the loss to close near the mid range today. Volume was impressive today with 43,500 contracts in futures and 32,800 contracts in options.

The market feels weak overall considering the bearish fundamentals. Spec funds are reducing their long positions and increasing their shorts. Also, CFTC announced several market initiatives to address the agricultural futures markets, which proposed better tracking procedure for index and spec trading.

On the other hand, mill buying activities should be the supporting factor of the market prices. We're expecting a decent export report out of this Thursday's USDA release, which will likely give the market certain support.

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
Advanced Search