Home / Knowledge / News / Textiles / Cotton volume back to average levels as open interest continues to fall
Cotton volume back to average levels as open interest continues to fall
29
Aug '08
Cotton tested the highs early, but eventually fell on a late day commodity sell off. We had seen a bounce yesterday on fear from Tropical storm Gustav, but after good economic data was released today, including GDP above 3%, the financial rallied and commodities fell.

Cotton volume was back to average levels with only 11,000 futures and 8,000 options as open interest continues to fall. Export sales were above average with 280,000 in sales and the same in shipments. However, this was not enough to hold the market above 70 cents.

We seem to be caught in a sideways trend channel from 67/72 and this will be hard to break out of in the short term. Cert stocks continue to see good decerts as we had another 40k today, but there is also another 40k awaiting review as we may be seeing the start of new crop cert cotton coming to the board.

We still have the chance of some negative weather affecting the crop over the long Labor day weekend, but demand is still limited as we continue to follow outside markets in a narrow trading range.

Technicals turned friendly last week as MACD started to cross higher in cotton made a nice run to the upside. Although volatile, the market is well traded in the range. We ran through some correction, but buying interest would come through to prevent the market from falling off. Considering the low open interest in cotton and the lack of demand, cotton feels like we may continue in a sideways trading range up to heavy resistance at 72.00.

This will depend on how much the rebound in outside markets can follow through, but the short term upside looks limited and we may see a correction in cotton if we cannot break through 72.00 cents.

Click here to view more:

ECOM USA Inc


Must ReadView All

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Tim Savage from Pexels

Textiles | On 19th Jun 2018

Da Lat begins construction of $50mn wool yarn factory

Da Lat Worsted Spinning Limited Company has begun construction of a...

Interviews View All

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Urmil Arya

Sushila International, a well established textile organisation established ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Paolo Ocleppo
Sandvik Hyperion

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Eric Scholler
Groz-Beckert

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Vaanee Bhatia
Gritstones Clothing

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

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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


June 2018

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

news category


Related Categories:

Advanced Search