Home / Knowledge / News / Textiles / Cotton prices may touch a seasonal low
Cotton prices may touch a seasonal low
25
Aug '08
After spending three light volume sessions trying to bounce off 67 cents, December cotton finally broke through to the downside mid-week, hitting sell stops and attracting fresh selling that took that contract to lows not seen in almost a year.

However the break went nowhere and in fact turned out to be a bear trap. Prices reacted to one of the most reliable technical indicators, an outside range reversal, by rallying nearly 3 ½ cents over the next two sessions.

Traders were hard pressed to attach cotton's late week rally to any news story concerning supply demand fundamentals.

Then as the week came to an end the action in cotton was actually quite impressive considering the extreme weakness in the outside markets Friday.

However, despite the sharp 1,100 point sell off, the CRB still closed an impressive 1,200 higher for the week. In fact commodity prices retreated globally Friday, erasing most of the previous days gains. The end of the week break seemed to be sparked by the sharp drop in crude oil and a corresponding rally in the US Dollar.

Cotton, on the other hand, more or less ignored the other markets and closed only slightly lower on the lightest volume in four weeks. December cotton lost 21 points Friday settling at 6963 but that was still up 255 for the week.

The cotton markets inability to establish a sustained move in either direction has been evident in the weekly spec/hedge report. The speculator seems to have waffled between being very slightly net long to being very slightly net short the last five or six weeks with neither side showing a lot of conviction. Commercials on the other hand have reduced their market positions on a fairly steady basis.

Last week's bounce came from 6700 which had been the downside target at 6700. However, it will now take a close above 7145 to silence skeptics and attract the type bullish technical following to challenge major trend line resistance between 7400 and 7500.

While a number of analysts feel that cotton is in the process of making a seasonal low, the tremendous amount of cotton hanging over the market has been a real drag on the market's momentum on each rally attempt. As we said last week and will continue to remind, it is an absolute certainty, cotton will eventually participate in the acreage battle for the 2009 crop.

Swiss Financial Services


Must ReadView All

Alliance to form joint entity for safety in factories

Textiles | On 24th Apr 2018

Alliance to form joint entity for safety in factories

On the 5th anniversary of the Rana Plaza Collapse, The Alliance for...

China’s Alibaba partners with Thailand for digital trade

Textiles | On 24th Apr 2018

China’s Alibaba partners with Thailand for digital trade

China’s Alibaba Group recently signed an agreement with the Thai...

Courtesy: Skineez Skincarewear

Apparel/Garments | On 24th Apr 2018

Skineez, Walmart partner for smart wearables

Skineez Skincarewear, a leading cosmotextile skincarewear company,...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Marcel Alberts
Eurofibers

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

Johan Berlin
InvestKonsult Sweden AB

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Prathyusha Garimella
Prathyusha Garimella

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

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

Leave your Comments


April 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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

Active Poll

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

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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