Home / Knowledge / News / Textiles / New business may start to lift hedge
New business may start to lift hedge
09
Jul '08
Technically, the market is still in a bear pattern, but we did bounce strongly today off the low set in V'08 at 68.00 cents. This level may represent an area in the short term where on-call sales fixations and new business could start to lift hedges. The rally in cotton was fueled by some friendly options and possibly some buy stops as cotton rose over 400 points in a very short period of time.

However, this sharp move was quickly sold and under light volume it could not hold up as we eventually settled 100 points lower. Volume was better than average, but still on the light side with only 29,000 futures and 23,000 options. Grains were all lower over night but the real heavy weight on the commodity market remains oil as it has fallen almost 7% in 2 days reaching a low today of 135.15 USD/barrel.

In order to get cotton back on the bull train, we need to close above 77 cents, but in the short term we will be testing the low set in June @ 71.65 which if we close below could allow Z'08 to reach the upper 60's. Loan cotton is starting to reach expiration, cert stocks keep rising, mill demand is scale down hand to mouth, and on top of that we are reaching seasonal lows in open interest. Nothing is pointing at a bullish scenario any time soon as we wait for good export demand to enter the market first.

Technically, the market looks bearish, but the RSI is reaching oversold levels at 30%. The 9-day MA crossed the 50 day moving average today so this may set us up for more downside testing as the specs have more room to sell. Cotton has made it through the initial planting period, but the crop is late and we will have to monitor weather in July and August.

The widespread sell off indicates that the commodity market had reached overbought levels and we will have to wait and see where the bottom will hold in the short term. There are estimates that oil can consolidate above 130 and the grains are finding support scale down.

Click here to view more:

ECOM USA Inc

Must ReadView All

Courtesy: Ikea

Textiles | On 26th Apr 2017

Ikea’s product sourcing from India to double by 2020

Ikea, the global home furnishing giant from Sweden, plans to double...

Textiles | On 26th Apr 2017

CITA to add insufficiently available fabric in CAFTA-DR

The Committee for the Implementation of Textile Agreements (CITA) has ...

Courtesy: SKF

Textiles | On 26th Apr 2017

SKF brings predictive maintenance for machinery to India

SKF India, a global supplier of bearings, seals, mechatronics,...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Silke Brand-Kirsch
Schlegel und Partner

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Sanjukta Dutta
Sanjukta's Studio

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

Mike Hoffman
Gildan Activewear SRL

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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:
April 2017

April 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