Home / Knowledge / News / Textiles / Cotton experiences a volatile trading session
Cotton experiences a volatile trading session
02
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:

ECOM USA Inc

Must ReadView All

Textiles | On 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Steve Cole
Xerium Technologies

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi
SVA

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

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search