Home / Knowledge / News / Textiles / Cotton market rallies but remains unchanged at close
Cotton market rallies but remains unchanged at close
21
Jun '08
We started out lower overnight and even tested the lows from Thursday after bearish options hit the market early. By the time grains opened in Chicago, crude oil was already 4 dollars higher and the dollar and stock market were falling so cotton bounced.

We rallied up with the grains, but eventually fell after they came back off and closed near unchanged. Volume was light as we square up for the N'08 FND (10,000 OI this morning) with 16,000 in futures and 14,000 in options.

Beneficial weather continues to improve the conditions in West Texas as the market looks for bullish news to fuel the rally from earlier this week. The COT report came out today and did show a swing with non-commercials adding to their long position and the trade adding on to their shorts (see page 2 in attached PDF).

However, more important is the huge drop in open interest which shows that cotton is not on the radar of hedge funds who are pouring money into the commodity index which is almost back to the highs set at the first of March while the US dollar sits on the lows set at the same time (see page 3 in attached PDF).

Technically, the market is looking toppy with several commodity sectors trading at contract highs. The MACD's are turning south recently in several of these sectors as we have been moving sideways and running into strong upside resistance.

Cotton will continue to follow the other commodities prices as the dollar and equity markets struggle, but our 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.

At the moment, demand is dead, cert stocks are rising and we are seeing a slow down in the commodity index which could set us up for a pull back.

Click here to view more:

ECOM USA Inc


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

C Dhandayuthapani

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

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Mark Paterson
Technical Absorbents Ltd

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

Marten Alkhagen
Swerea IVF AB

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

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

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search