Home / Knowledge / News / Textiles / Cotton sees moderate gains in this week
Cotton sees moderate gains in this week
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:


Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

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...

Lynda Kelly
Suominen Corporation

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

Wendell Rodricks
Wendell Rodricks

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

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search