Home / Knowledge / News / Textiles / Market undergos huge pressure due to lack of technical support
Market undergos huge pressure due to lack of technical support
09
Jun '08
NY futures continued to slip this week, with July dropping another 134 points to close at 64.65 cents, while December fell 163 points to close at 73.01 cents.

The breach of important technical support invited more spec selling, which put the market under a lot of pressure throughout the week. After some damage was done on the daily chart over the last couple of months, the market was trying to hang on to a major uptrend line on the weekly chart, which ran through about 66.50 cents this week, but to no avail. The market clearly broke through this line of defense, which triggered a lot of spec selling that forced the market down to a low of 63.10 cents before rebounding slightly.

Speculators were clearly the driving force behind this selloff and there was again a lot of talk about the potential impact the CFTC investigation might have on spec long positions. Some prominent market commentators stated that a regulatory backlash against hedge funds could lead many of them to exit positions. However, we do not necessarily share this pessimism, because in the case of cotton these specs do not have that much of a long position left to liquidate.

According to the latest CFTC "Commitment of Traders" report, large speculators held just 45'000 contracts of outright longs, down from almost 99'000 contracts at the end of February.

Meanwhile, large outright spec shorts increased their position to almost 27'000 contracts, up by over 9'000 contracts in the week of May 20 - 27 alone and up by over 21'000 contracts since the end of February.

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Eamonn Tighe
Nature Works LLC

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

Larry L Kinn
Suominen Corporation

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

Paolo Ocleppo
Sandvik Hyperion

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

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

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
January 2017

January 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