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

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Courtesy: ZDHC

Textiles | On 23rd Jan 2017

ZDHC adds six new contributors for sustainability

Zero Discharge of Hazardous Chemicals (ZDHC) programme has added six...

Textiles | On 23rd Jan 2017

Bombay Dyeing to expand distribution network in Tamil Nadu

Bombay Dyeing, a 137-year old textile manufacturer of the Wadia group ...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Steve Cole
Xerium Technologies

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

Ritu Kumar
Label Ritu Kumar

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

Wendell Rodricks
Wendell Rodricks

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

Tony Ward
Tony Ward

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

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