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

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Marcel Alberts
Eurofibers

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

Suresh Patel
Sidwin Fabric

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

Paolo Ocleppo
Sandvik Hyperion

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Judy Frater
Somaiya Kala Vidya

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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
February 2017

February 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