Home / Knowledge / News / Textiles / Cotton experiences a volatile trading session
Cotton experiences a volatile trading session
Jul '08
We experienced a very volatile trading session Tuesday. The weakness from Monday carried through and even a friendly reopen of the grains market didn't offer enough support for cotton futures. Z'08 slipped to today's low at 76.03 after a temporary bounce. The pull back in the previous two sessions encouraged more selling interest from the funds.

Actions in the options pit were mixed during the day, with some 3,000 contracts December put spreads sold in the early morning, and more put selling later on which lowered the volatility. Then some put buying interest came into the market which added more weakness on the day.

Cotton was trading near session low during the afternoon session before settling at 229 points lower. Where do we go from here as Z'08 is testing the 75 cents level. Lower market prices paired with reducing open interest and no anticipated demand in the near term give us some very bearish directions. Funds are now 7.2% net long as of June 27th, up from last week's 4.5% (charts are on page 2 in attached PDF).

They have potential to go either longer or shorter at this moment. There is bearish fundamental on one hand as macro-economy keeps weakening and demand has dried out near term, and there is the generally higher commodities price on the other hand, which puts pressure on cotton prices to rise in order to fight for acreage.

Today's session painted another negative picture on the technical chart. December contract easily broke through the 76.50 level and made a run for the 75.50. It now settled below both moving averages and MACD starts to cross downwards. Trading was extremely choppy amid uncertainties in the market.

We could continue to trade lower this week and challenge the 75 cents level basis Z'08, or we could trade in consolidation as the market is heading into the holiday weekend. 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:


Must ReadView All

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

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...

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Paolo Ocleppo
Sandvik Hyperion

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Rupa Sood and Sharan Apparao

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


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