Home / Knowledge / News / Textiles / Cotton trades in negative territory through out last week
Cotton trades in negative territory through out last week
07
Jul '08
Cotton futures fell to their lowest level in three weeks Thursday. However, As we went into the long Independence Day weekend, after hitting a low 727 points below Mondays high, the cotton market rallied sharply at the close. Dec cotton settled up six for the day but 109 above the lows. December still lost 605 points for the week

Other than a tiny little blip right after the opening Monday morning, the market never traded in positive territory for the week. This despite the CRB Index of 19 commodities hitting all time highs last week

The initial catalyst was technical weakness following the "outside day range" of the previous Friday. Downside momentum exploded following the June 30 plantings report that showed US producers had planted and intended to plant a total of 9.246 million acres.

Reports are bullish or bearish only in relation to what traders are looking for and since this is at the high end of expectations, the initial reaction was obviously bearish!! The widespread talk of the huge losses on the high plains of Texas had some traders looking for an unrealistically low acreage.

Of course, most of potential abandonment occurred after the first week of June. It will be The August USDA will give us the acres for harvest and a projected yield. That will be a whole new ball game

Very respected surveys of a week or so ago show losses of ¾ million acres with another ½ million damaged but also adding to the downside pressure were the beneficial rains falling somewhere on the Plains almost nightly. Reliable standing acreage estimates are moving targets.

The weekly progress and condition report that USDA releases each Monday afternoon showed the US crop as a whole only 89.8% of normal as of last Sunday vs.. a rating of 95.1% this time last year. However, in Texas, where more than half the US cotton acreage is found, the crop was rated at only 80% of normal vs.. a 96% rating a year earlier.

The export sale report this week had a bit of a pleasant surprise in it. Fresh sales were still very slow as is usually the case going into the summer. Besides we have already sold more than enough cotton to meet the USDA objective.

However, shipments of over 380,000 bales were the best of the marketing year - that is more than a 1/3 more than either last week or the average of the last four weeks. The primary destination was China. Have we turned the corner on shipments or is this a one-time anomaly; only time will tell.

Street talk had indicated mill interest and bids, including Chinese, believed to be in the 7400 area. However, understandably disturbing talk has been circulating for the last week concerning the Chinese government subsidizing rail transportation costs on Xinjiang cotton to make their own domestic cotton more competitive than imported cotton. Their Ministry of Finance released details of the 400 Yuan per ton subsidy Friday.

From a technical perspective, the bears clearly have the upper hand. However, late session action both Wednesday and Thursday portend support building. Look for a test of resistance 7775 and 7825. A close above 7900 would negative downside objectives.


Must ReadView All

Courtesy: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Urs Stalder
Sanitized AG

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

Eamonn Tighe
Nature Works LLC

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

Yash P. Kotak
Bombay Hemp Company

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

Tony Ward
Tony Ward

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

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

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
76.1%
No
12.7%
Skip
11.3%

Total Votes: 71

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
28.2%
Skip
9.9%

Total Votes: 71

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.9%
No
9.9%
Skip
4.2%

Total Votes: 71

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
76.1%
No
11.3%
Skip
12.7%

Total Votes: 71


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