Home / Knowledge / News / Textiles / Cotton futures open slightly lower
Cotton futures open slightly lower
01
Jul '08
Monday cotton futures opened slightly lower, but was soon taken on a wild ride upon the USDA acreage report's release at 8:30am NY time. Cotton plantings for 08/09 season are estimated at 9.25 million acres, down from the March estimate of 9.39 million acres.

The report was considered bearish since an average estimate of 9.00 million acres has been factored into the market. Weakness immediately kicked in after release of the report and an intra day low at 81.80 was established basis Z'08. Supported by a trader buying 2,000 contracts December 85/95 strike call spreads for 220 points, Z'08 futures was trading at 160 points lower.

Today marked the last trading day of the second quarter of the year and not much excitement came out of the market. Cotton volume is mediocre at 15,500 contracts in futures and 10,600 contracts in options. West Texas received more rain over the weekend. Most of the hail damage is kept to the west of Lubbock. However, there are still plenty of uncertainties in this market which might take the prices to move either direction.

Technically, we had the biggest pull back during recent sessions driven by the bearish USDA acreage report. December contract made a try to break through the 78.50 level and settled right at the 50 day average price. Cotton futures is finding good resistance around 82 cents basis Z'08.

As there are plenty of uncertainties in the market, we will have to wait and see if it can break through the support level or we will eventually hold here and go higher. Fundamental wise, we will not have another big news until the supply and demand report to be released next Friday. Meanwhile, cotton is likely to continue following the outside markets.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 22nd May 2017

GST to be biggest achievement of Modi govt: ASSOCHAM

Goods and Services Tax (GST) which is near a roll-out would be the...

Textiles | On 22nd May 2017

Maintaining NAFTA benefits is crucial: Cotton council

The US must remain a participant in a vibrant North American Free...

Apparel/Garments | On 22nd May 2017

Retailers ask Congress not to go for consumption tax

The National Retail Federation has asked US Congress to focus on...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

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

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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