Home / Knowledge / News / Textiles / Cotton trades flat
Cotton trades flat
24
Jun '08
Grains opened lower overnight and that did not help cotton which traded flat to lower most of the day. Open interest in N'08 as of this morning was 6,900 contracts, but there does not seem to be a strong taker as the spread was basically unchanged showing little desire for the growing cert stocks.

N/Z'08 spread closed out at 850 points which was more or less the same spread we have been trading since K'08 went off the board. Volume was light today with only 16,000 futures and 8,000 options as cotton continues to follow grains looking for direction.

Spec hedge position increased to 4.5% long today from 1.7% last week which is not surprising considering the reduction in non-commercial shorts last week and the big fall in open interest below 220k. We have the Federal Reserve meeting this week on Wednesday where most people are expecting a hold on rates at 2.0% and this may help to strengthen the dollar going forward.

However, there is plenty of negative financial news coming out on a daily basis which keeps the equity markets on the defensive as well as the dollar. We are building a bit of a sideways trading range as the bottom in Z'08 at 78.50 has held up on two occasions, but we are still seeing good resistance above 82.00.

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

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marten Alkhagen
Swerea IVF AB

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

Rupa Sood and Sharan Apparao
Nayaab

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

Pranav Mishra
Huemn

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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