Home / Knowledge / News / Textiles / Light volumes in cotton futures
Light volumes in cotton futures
08
Jul '08
Long holiday weekend equals meltdown in almost every market including commodities and stocks. Grains were down overnight which triggered a test of the lows in cotton, but after the morning sessions started looking weaker, cotton followed the grains to limit down levels before rebounding slightly.

Cotton managed to traded synthetically at one point in Z'08 at 71.55 as bearish options fed the sell stops and the lack of demand. Volume was light with only 17,000 futures and 21,000 options as the cotton market seems to be searching for a bottom.

The commodity index had ended last week strong as oil had set new highs, but the profit taking spread throughout the markets this morning and may carry on when the Far East opens tonight. The spec hedge report showed a longer position this week almost reaching 10% as they have been slowly creeping longer over the last several weeks from a low of 1.7% on June 17th.

Technically, the market looks bearish, but the RSI is reaching oversold levels at 31%. The 9-day MA is getting ready to cross the 50 day moving average so this may set us up for more downside testing as the specs now have room to sell. The crop progress showed some improving conditions from last week and we really don't have any significant news coming out until Friday's USDA S&D report.

The widespread sell off indicates that the commodity market has reached overbought levels and we will have to wait and see where the bottom will hold in the short term.

Click here to view more:

ECOM USA Inc

Must ReadView All

President Tsai Ing-wen delivering remarks before boarding her plane bound for Central America. Courtesy: Presdient's office

Textiles | On 16th Jan 2017

‘Textiles at centre of Taiwan’s new trade arrangements’

Textiles should be at the heart of Taiwan’s thinking while developing ...

Apparel/Garments | On 16th Jan 2017

Ralph Lauren develops policy on tracking wood based fabrics

In a bid to trace source of wood based fabrics like viscose and rayon ...

Apparel/Garments | On 16th Jan 2017

EC proposes enhanced market access for Sri Lanka

The European Commission (EC) has proposed that a significant part of...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

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...

Johan Berlin
InvestKonsult Sweden AB

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

Rupa Sood and Sharan Apparao
Nayaab

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

Karan Arora
Karan Arora

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

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search