Home / Knowledge / News / Textiles / Cotton trading in comfortable short term sideways range
Cotton trading in comfortable short term sideways range
Jul '08
The sell off in commodities continues Thursday. Grains saw weakness overnight amid bearish influences. The weather news Wednesday favorable to soybean prices didn't sustain, and the mediocre weekly sales report as well as the anticipated decreasing short term demand drove market sharply lower.

Crude oil settled at $129.29 per barrel, which marked $16 or 11% price drop in 3 days. Influenced by the overall commodity complex, the big drop in cotton came just before noon to touch beneath the 72 cents mark. As grains remained at their lows, cotton recouped part of the loss in the afternoon session to settle at only 72 points lower.

Today's US export report was up to anticipation but seemed to have little impact on the market movement upon its release in the morning. New sales were well improved from the week before as sales were booked when NYF was trading below 72 cents basis Z'08.

Total upland net sales were 56,800 running bales for the current marketing year and 282,700 bales for the 08/09 marketing year. Shipments were lower than last week at 258,600 bales. China was the largest destination with 110,800 bales leaving for the week.

Seasonal total shipments are now close to 12.30 million bales upland and pima combined. With 3 more weeks to go, it looks like we'll fall short of the USDA target of 13.90 million bales by end of this marketing year.

The commodity index started its rally since beginning of June and topped out a month later. This week's loss in the overall commodity market has brought the index down to around the support level established in March. Cotton, at the moment and after having lost nearly 10 cents since end of June, seems to have found a comfortable short term sideways trading range.

The 2,500 contracts of December contract 95 strike call buying from yesterday turned out to be liquidation of the existing positions. December contract tested yet again the trend line resistance level of 74.20 today but failed to go though. Around 72 cents to the down side also proves to have good support.

Click here to view more:


Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

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

Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Steve Cole
Xerium Technologies

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

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...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search