Home / Knowledge / News / Textiles / Markets will have to trade lower
Markets will have to trade lower
Jun '08
We had a down day across the board in commodities as oil made an early rally but fell hard toward the end of the day. Oil has been trading in a sideways trade channel between 130/140, but the MACD crossed lower today and may weigh on the market going forward.

The grains also took a big hit today but closed off the lows. Cotton also closed off the lows, but did take quite a hit lower which may open up for some more downside testing. Volume was below average with 20,000 futures and 14,000 options as open interest in N'08 fell to 15,000 contracts this morning with 3 trading days left.

Export sales were very negative today with several cancellations equating to only 43,000 new sales while shipments stayed strong at 300k. We knew the inquiries had slowed down, but it was surprising to see a marketing year low after two good weeks back to back.

This just reinforces the fact that business at these levels will not exist and if we are not going to get the technical follow through that we did in the first quarter, the fundamentals will eventually kick back in and the market will have to trade lower.

Technically, the market still looks friendly, but we are getting a bit overbought as we may have put in a high for 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 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 go lower.

Click here to view more:


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Hannah Lane

Encouragement from brands will motivate supply chains to become more...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Rashi Menda

Every fifth sale we make on Zapyle is a repeat purchase

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

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

Eric Scholler

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

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...

Ritu Kumar
Label Ritu Kumar

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


July 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

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

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

Yes No

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

Yes No

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

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