Home / Knowledge / News / Textiles / Cotton sees moderate gains in this week
Cotton sees moderate gains in this week
28
Jun '08
Cotton saw moderate gain this week amid light volume and dropping open interest. The strength in outside commodities markets provided the cotton market with support; however, the lack of strong hands from the big funds, liquidity of the market is suffering.

Overnight ICE opened at around unchanged to slightly lower, and gradually traded higher to the intra day high at 74.90 basis N'08 and 82.59 basis Z'08. Resistance started kicking in at these levels and cotton turned direction before the Chicago market's re-open. Lackluster described the rest of the trading session with estimated 11,500 contracts in futures and 6,000 in options.

Demand from overseas has dried out at current price levels, as proved by another poor USDA export report yesterday. As demand is bearish, the acreage report to be released next Monday June 30th may add a bullish factor into the market. The market is expecting a cutback on the plantings for the 08/09 crop year.

The commitment of traders report today revealed that as of Tuesday June 24th, non commercials have reduced their net long positions by 1,000 contracts by reducing both their longs and shorts. Commercials also reduced both their longs and shorts with a net effect of going shorter by 1,800 contracts. Index funds, on the other side, increased their net long position by 1,600 contracts. Please see chart on page 2 in attached PDF.

Technically, cotton held up well during today's session encountering resistance after yesterday's rally. Crude oil is obviously the most important market driving force short term as the equity markets continue to weaken, thus give strength to commodities if this rally continues.

Although next Monday's plantings report will provide some fundamental news to the market, cotton will continue to follow the outside markets as the dollar and equity markets struggle. Cotton futures is finding good resistance around 82 cents basis Z'08 and we will have to wait and see if it can break through this level or we eventually go lower.

Click here to view more:

ECOM USA Inc

Must ReadView All

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Pakistan's Finance Minister Mohammad Ishaq Dar presenting Budget 2017-18 in National Assembly in Islamabad on May 26. Courtesy: PID, Pakistan

Textiles | On 27th May 2017

Pakistan Budget 2017-18 proposes 4 new measures

To support the textile sector in Pakistan, finance minister Mohammad...

Textiles | On 27th May 2017

Indian exports can touch $325 bn in 2017-18: FIEO

Indian exports are on upward trend in last few months as the country...

Interviews View All

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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