Home / Knowledge / News / Textiles / Market trades in a narrow range
Market trades in a narrow range
11
Jun '08
Market traded in a narrow range on light volume closing near unchanged. The big news today was the USDA S&D numbers for all commodities which were mostly neutral to bearish for cotton and the grains as you can see a summary on page 2 in attached PDF.

The market seems to be settling into a rolling mood as July open interest fell 7,000 contracts yesterday and a total of 16,000 over the last two sessions. We are now down to 85,000 contracts left in N'08 and they probably came down again today another large amount as we are getting to the point where the large index funds start to roll. Volume was average with 24,000 futures and 8,000 options as we wait for options expiration on Friday.

Taking a look at the USDA numbers, we did have a significant cut in cotton production for the 08/09 season as ending stocks fell almost 1.5 million bales. The Northern hemisphere cotton crop is still very young and many things could happen if we get the rain that we need in the next 2-3 weeks in West Texas.

Export sales on Thursday should be on the lower end from last week and closer to the 5 week average of 250k sales and shipments. At the moment, cotton prices look like they are forming a sideways trading range between 66/68 as we get through options expiration. There is good technical resistance at 69 cents and we did have another pull back today in other commodities which kept a lid on grains and cotton.

Technically, the MACD is crossing higher this week and RSI has room to go higher at 42. The upside resistance is limited until 69 cents but we do have options expiration on Friday with a large volume of 70 cent puts sitting above the market. With such a strong bounce in commodities across the board last week, the low established on Tuesday at 63 cents should hold up through expiration.

However, the upside feels limited as we still have over 80,000 contracts in N'08 to roll forward. The spreads are coming in slightly, but cert stocks keep ticking higher so the resistance on cotton scale up is going to stay in place.

Click here to view more:

ECOM USA Inc


Must ReadView All

Two slabs of GST will affect Bengaluru garment units: SIGA

Apparel/Garments | On 23rd Jan 2018

Two slabs of GST will affect Bengaluru garment units: SIGA

The South India Garment Association (SIGA) has voiced its concern...

US FTC updates textile rules to drop obsolete requirement

Textiles | On 23rd Jan 2018

US FTC updates textile rules to drop obsolete requirement

The US Federal Trade Commission has eliminated an obsolete provision...

Indian textile industry at inflection point: Report

Textiles | On 23rd Jan 2018

Indian textile industry at inflection point: Report

The textile and apparel sector of India is at an inflection point...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Marten Alkhagen
Swerea IVF AB

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

Eric Scholler
Groz-Beckert

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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