Home / Knowledge / News / Textiles / Good chance for cotton!!!
Good chance for cotton!!!
17
Jun '08
Cotton fed off of strong gains on Friday and ran through buy stops on its way to a 9-week high. The concerns over new crop conditions and the explosive grain market have given cotton the momentum to break through the 100 day moving average.

We traded synthetically over another limit higher early in the day and then backed off to spend the rest of the day near 300 higher across the board. Volume was good with 35,000 futures and 51,000 options as we continue to see a good chance for cotton to go higher.

27,000 decerts this morning showed there is a tendency to start redeeming some of the old crop cert stock which still makes up 350k of the 1.6 million bales. That cotton is more than likely sold and will continue to get redeemed as we move into the third quarter.

There is still a general push toward commodities to create a hedge against rising inflation. The US dollar fell hard again today and even soybeans eventually fell as there is forecasted better weather coming up North. West Texas is still very dry and hot which will be a bigger issue the longer we go without rain.

Technically, the MACD is crossing higher and RSI has room to go higher at 69. We ran into some resistance near 72.40, but once that was broken, N'08 had no trouble finding buy stops. We are setting up for a seasonal high in the short term as all commodities are testing contract highs or on them.

Cotton will continue to follow the other commodities prices higher as the dollar and equity markets struggle. Friendly options and rising volatility has the tendency to go higher. However, it is unusual to see the market rising so quickly while open interest has fallen 20% over the last two session falling to 230k and there is only 30,000 left in N'08.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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