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 27th Mar 2017

Fynd raises $500K Series A funding from Venture Catalysts

Fynd, an online to offline (O2O) e-commerce fashion marketplace, has...

Apparel/Garments | On 27th Mar 2017

Digital technology to accelerate Indian business growth

Indian business will benefit much by going digital, according to a...

Textiles | On 27th Mar 2017

Raymond to buy 98,000 metres khadi fabric from KVIC

Raymond, leading Indian fashion retailer, has ordered 98,000 metres...

Interviews View All

Anshul Sood
Oceedee

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

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater
Somaiya Kala Vidya

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

Mike Hoffman
Gildan Activewear SRL

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

Sanjukta Dutta
Sanjukta's Studio

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

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search