Home / Knowledge / News / Textiles / Stabilization in commodities to lend support to cotton
Stabilization in commodities to lend support to cotton
05
Jun '08
Cotton had another dip today, but found good support on the lows from yesterday. However, we still traded inside the range set on Tuesday between 65.01 and 63.10. We are looking oversold at the moment with RSI reaching 25, but the specs look like they have more room to sell as the open interest grew overnight while the market fell lower yesterday.

However, we will need to take out the resistance at 65.01 before we can test higher levels. Volume was much lower today and may show some consolidation sideways as we approach first notice day in options on next Friday. Futures were estimated at 19,000 lots and 11,000 options as the market looks for direction going forward.

Export sales and shipments should be strong tomorrow as there was a good deal of sales made last week on the break in NY. Oil prices were under pressure most of the day, but soybeans closed strong.

The market is trying to form a bottom at these levels as good fundamental demand has entered the market, but the technicals still look bearish. We need to see some stabilization in the commodity complex to also lend some support to cotton. Short term direction feels like it will be sideways as we try and consolidate the support line at 63.00.

Technically, the MACD is still bearish but the RSI is reaching oversold levels at 25. Today's low is challenging the 63 cent level basis N'08 and the next support lies in 62.90, which was the low created on August 27 last year. Specs and indexfunds are adding to shorts and we may see the spec position cross into negative territory for the first time in over a year.

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. N'08 now is significantly below the moving average and the near term trend is looking negative.

Click here to view more:

ECOM USA Inc


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Top executives
Textile industry, India

The event should be organised every year

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts
Eurofibers

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

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search