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

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

PVH Corp Q1 2017 revenue rises 4%

The first quarter revenue of fiscal 2017 at apparel marketer PVH Corp ...

Courtesy: Levi Strauss & Co

Apparel/Garments | On 26th May 2017

LS&Co. to fund water saving solutions

LS&Co. will fund to the tune of more than $350,000 the solutions...

Interviews View All

Hannah Lane
Redress

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

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Eric Scholler
Groz-Beckert

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

Silke Brand-Kirsch
Schlegel und Partner

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

Johan Berlin
InvestKonsult Sweden AB

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

Judy Frater
Somaiya Kala Vidya

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

Yash P. Kotak
Bombay Hemp Company

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

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


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 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