Home / Knowledge / News / Textiles / Market trade in a narrow range
Market trade in a narrow range
19
Jul '08
Though trading was quiet in cotton futures in the morning, the options pit had a busy start. Good volume of bullish options hit the market such as 1,000 lots December contract 80/90 put spreads sold for 805 points by one group and 300 lots 75/85 call spreads bought at 285 points by another group. The day's high was established at 74.16 just after the options pit open. Cotton traded back and forth in light volume but mostly in the negative area for the remaining session. The settlement came in at 73.24 basis Z'08.

The summer lull was felt by the cotton market this week. As of end of yesterday, we dropped close to 50 points on December contract during the course of the week, and total open interest dropped 2,700 contracts. The general commodity index has experienced massive sell off led by the hefty loss in crude oil. After the biggest ever $16 drop in 3 days, $130 per barrel seems to be a critical area.

Although influenced by the outside markets, cotton traded on good cash price basis and performed relatively better. However, the daily trading volume has been unimpressive, which failed to create momentum to push the market out of near term sideways trading range. Weather wise Texas received more rain this week, which continues to improve the crop conditions.

The commodity index started its rally since beginning of June and topped out a month later. Crude oil closed at $128.88 per barrel and experts expect the next low to be around $122.00. 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 area.

The trading range is becoming narrower with lower highs and higher lows. 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.

Texas Market:
Another week of good moisture across much of the South and High Plains, and Rolling Plains of Texas continues to improve crop conditions. It is a welcome surprise to get rain in July which is typically a very dry month for this area. Only a few areas to the south/southwest (Lamesa, O'Donnell, Seminole) are on the short side for moisture. Unfortunately, that is where much of the dryland cotton is grown.

Local forecasts call for a chance of isolated storms today and early next week. But for the most part temps will warm back up into the mid 90's...perfect after the rains this past week. Overall we are behind in progression. The hot dry weather that is forecast should help things catch up. Below is a breakdown by location in comparison to Lubbock:

Panhandle - a few isolated fields have been lost to hail around Carson County Gin. Overall, the crop is in great shape. It is running a bit behind and just now starting to bloom. The gin in Spearman said that the northernmost Panhandle into Oklahoma and Kansas have a very good season going. They have hadlots of rain and need dry, hot temps now. Many dryland fields looked just as good as the irrigated.


Must ReadView All

Courtesy: Fashion Revolution/Fashion Transparency Index

Fashion | On 23rd Apr 2018

Top global fashion brands now more transparent

Fashion Revolution’s Fashion Transparency Index 2018 reveals Adidas...

Japan’s clothing imports up 4% in fiscal 2017

Apparel/Garments | On 23rd Apr 2018

Japan’s clothing imports up 4% in fiscal 2017

Japan’s imports of clothing and accessories increased by 4 per cent...

PVH, WWF tie up to protect water bodies in Ethiopia, India

Apparel/Garments | On 23rd Apr 2018

PVH, WWF tie up to protect water bodies in Ethiopia, India

PVH Corp , parent company of brands like Tommy Hilfiger, Calvin...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

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

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Larry L Kinn
Suominen Corporation

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

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...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

Leave your Comments


April 2018

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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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