Home / Knowledge / News / Textiles / Profit taking leads to plunge in cotton prices
Profit taking leads to plunge in cotton prices
05
Aug '08
Commodity prices plunge lower as cotton gets pulled along for the ride. We hit the lowest level for Z'08 in almost a year today and we may be setting up for the first real short position attempted by the specs since May'07 (see page 2 in attached PDF). We are certainly seeing profit taking coming from the commodity sector for the first time in quite a while.

We do have a .9% long position in cotton today compared to .7% last week, but open interest went up on Friday over 2,000 contracts which signal that new shorts entered the market during the heavy selling. Volume was much better today with 25,000 futures and 20,000 options as we are starting to see weakness lead by grains but being followed through by new spec selling.

Commodity hedge funds have been rewarded for holding long positions for over 6 years now, but July '08 was the worst loss for commodity hedge funds in 35 years.

Crude oil which fell another 4 dollars today. We are feeling concern by commodity funds which could translate into further losses during August as we await the USDA report next week on the 12th. Demand from mills will pick up with the spot month near 67 cents as that translates into prices landed the Far East near 75 cents.

MACD crossed lower today in cotton and and we broke heavy support at the 70 cents level. RSI is in the 30's and we are getting into oversold territory. Have to see how the grains respond tonight, but there were rumors that one large commodity hedge fund was forced to liquidate some positions today and that seemed like a good reason to explain such a heavy sell off across the board. The commodity index has been sliding since the beginning of July (see monthly chart on page 3 in attached PDF).

We may be seeing the first pull back since this rally began back in 2002 when the USD also started its collapse. If this trend is starting to change, all commodities are due for more of a correction.

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

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Karan Arora
Karan Arora

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

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