Home / Knowledge / News / Textiles / Cotton prices drop on Sept 4
Cotton prices drop on Sept 4
05
Sep '08
We continue to trade in a narrow intraday range on light volume. Cotton prices opened higher and tested the 70 cent level early, but failed and after weak grain prices combined with a strong dollar, cotton fell all the way down to 68 cents before finding support.

Volume was slightly above average with 12,000 futures and 6,000 options, but the trend remains negative as the technicals started turning south in cotton and grains.

The stock markets in the U.S. took a 3% beating today after more negative news came out in retail and employment as the recession fears increase. There are still storms hanging out in the Atlantic, but most are on course to not cause much damage and we are not getting any extremely negative news out of the major growing areas.

The U.S. dollar hit a new 2008 high against the Euro and this is the main driver in weak commodity prices, but if the equity markets continue to fail, we may see new money pouring back into the oversold commodity complex.

Technicals are starting to turn negative and in a few more days with sideways to lower movement, we could cross downward on the MACD. We have been testing the upside steadily for the last 2 weeks, but have been unable to break the heavy resistance above 72 cents since we broke lower starting back on August 4th.

Considering the low open interest in cotton and the lack of demand, cotton feels like we may continue in a sideways trading range and may test the downside down the road at 66.79. This will depend on outside markets, 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

Textiles | On 28th Apr 2017

Fix 5% GST rate for textile goods: Textile bodies

Uniform levy of 5 per cent Goods and Services Tax (GST) on all...

Textiles | On 28th Apr 2017

India lifts CVD imposed on Nepali Jute goods

The countervailing duty (CVD) that was imposed on Nepali jute...

Courtesy: Williamsburg Garment Company

Fashion | On 28th Apr 2017

'We have grown by staying small & maximising efforts'

The easiest way to go out of business is to be too big or expand too...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Marcel Alberts
Eurofibers

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

Eamonn Tighe
Nature Works LLC

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing 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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X