Home / Knowledge / News / Textiles / Mills take advantage of weak cotton futures
Mills take advantage of weak cotton futures
24
Jul '08
Wednesday session experienced a near 300 point range movement. Early morning trading was quiet as cotton market was influenced by outside commodities weakness. December contract gradually pushed to today's low at 70.78, below the bottom of the near term trading range, which was created on July 8th.

As mills took advantage of the NYF weakness and booked some cash business, trade buying supported the market from moving further lower. Around noon futures trading started taking off with close to 2,500 contracts bought on the screen and no activities seen in the options pit. This fast movement reversed all cover months to trade in the positive area and up to 210 points higher.

Dolly became a category 2 hurricane. The movement toward landfall was slow and the maximum sustained winds were near 100 mph. The estimated 24 hour rainfall for some extreme Texas locations is already nearing 6 inches, while forecasted range will be 6 to 12 inches south of Corpus Christi and into northern Mexico. While the worst possible damage to the crop that could be caused by Dolly is not feared by the market, the weather conditions in India are more in the center of attention.

Due to lack of the usual high content of rain during the summer monsoon season, the next 15 days seem to be very important. There's also news that all cotton export contracts are now required to be registered with the Textile Commissioner of India prior to shipment, and only shipments under registered contracts will be allowed clearance through customs. This sounds like more paperwork for the exporters.

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, even below the previous low of 70.86. But the technicals seemed to have encouraged explosive spec buying activities.

The possible damages to be caused by Dolly is still to be seen, but we're only talking about a moderate size of acres. The range is still likely to hold, but the market is definitely keeping an eye on the potential of Z'08 challenging the 74.20 level.

Click here to view more:

ECOM USA Inc


Must ReadView All

Textiles | On 26th Jul 2017

Q1 2018 revenue at Raymond soars 14%

The consolidated revenue of Raymond Limited for the first quarter of...

Textiles | On 26th Jul 2017

Textile Corp of America to create 1000 jobs in Tennessee

Textile Corporation of America Inc, a leading textile manufacturer,...

Textiles | On 26th Jul 2017

Leather & footwear industry expecting incentive package

India’s leather and footwear industry is anticipating an incentive...

Interviews View All

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

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

July 2017

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

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X