Home / Knowledge / News / Textiles / Cotton futures in short term sideways trading area
Cotton futures in short term sideways trading area
23
Jul '08
Commodity continued its sell off Tuesday among experts' pessimism on the second quarter economic rebound. Crude oil price tumbled more than $5 during the session and settled below the critical $130 per barrel area. NY cotton traded in a range of merely 163 points. The day's high was established at 73.14 just before the options pit open.

An hour later, good volume selling on the screen pushed the December contract temporarily below 72 cents. Another sell momentum came in on cotton options pit close and the close was settled at 71.56 basis Z'08, near low of the day.

Spec hedge position is now in a negative area at 0.2% net short. The last time we saw a net spec short position was back in May 2007. From this point, there's potential for the specs to go either direction. As tropical storm Dolly draws closer to making landfall, the market is eager to know what possible damages the storm could bring to the crops.

Although it is more unlikely for the storm to threaten oil supply, the combination of rain and wind brought by the storm will likely do damages to the 130,000 acres of cotton crop in the Grande Rio Valley area, the expected landfall location of the storm. We're expecting 4-6” rain in most areas with up to 15” in certain locations. This area has already received plenty of rain in recent weeks.

The commodity index started its rally since beginning of June and topped out a month later. 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. Influenced by stronger dollar and softer overall commodities market today, Z'08 low made it to the bottom of the range.

The possible damage caused by Dolly might not affect the market price in a big way since we're talking about a moderate size of acres. Due to uncertainties in the market, this short sideways trading pattern is likely to hold for the nearby sessions to come.

Click here to view more:

ECOM USA Inc

Must ReadView All

Apparel/Garments | On 5th Dec 2016

EC proposes new tax rules to support e-commerce in EU

The European Commission (EC) has unveiled a series of measures to...

Textiles | On 5th Dec 2016

US textile & apparel exports down 6.44% in Jan-Sept ’16

The exports of textile and apparel from United States were down 6.44...

Textiles | On 5th Dec 2016

Pakistan’s 2016-17 cotton output surpasses last season

Cotton output in Pakistan during 2016-17 season has already surpassed ...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Steve Cole
Xerium Technologies

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

Silke Brand-Kirsch
Schlegel und Partner

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

Mike Hoffman
Gildan Activewear SRL

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

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search