Home / Knowledge / News / Textiles / Cotton market settles for low volume narrow trading range
Cotton market settles for low volume narrow trading range
19
Jun '08
After several volatile trading sessions, we settled into a low volume narrow trading range today between 80/82. We did settle on the high end of the range after testing the lows overnight, but the market feels like it wants to consolidate at these levels and possibly test the highs a few more times.

We feel like there is strong enough resistance and trade selling above the market to keep prices in the recent trading range up to 85 cents or the 50% retracement level. Volume was much lower today with only 20,000 in futures and 24,000 options as the market looks like it is waiting for fresh news to trade.

Export sales tomorrow should be lower than last week as demand has come down considerably based on the higher levels in NY. Good precipitation is helping the growing conditions in West Texas and we are not getting too much help recently from other commodities prices.

There is quite a bit of technical congestion above 82 cents and we should continue to see good scale up selling from the trade. Bullish options kept the market supported on dips, but we also had good resistance on the highs which may be setting up for further testing of this range.

Technically, the market still looks friendly, but we could be getting a bit overbought as we are setting up for a seasonal high in the short term. The 9-day MA is getting ready to cross the 50 day moving average so this may set up for more underlying support.

We are getting some rain in West Texas and if anything the cooler temps this week are helping the 20% of poor and very poor cotton in the dry land areas of Texas. Cotton will continue to follow the other commodities prices higher as the dollar and equity markets struggle. Market is finding good resistance at these levels and will have to wait and see if it can break through or we eventually come down.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 27th Feb 2017

Surat to get a mega textile park, centre of excellence

The textiles ministry is positively working on the proposals for a...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: Invista

Textiles | On 27th Feb 2017

Invista explores alternatives for apparel & textile trade

Invista, one of the world's largest integrated producers of chemical...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Dinaz Madhukar
DLF Emporio and DLF Promenade

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Silke Brand-Kirsch
Schlegel und Partner

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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
February 2017

February 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