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 23rd Jun 2017

Textile ministry organises training workshop on GST

The ministry of textiles had organised training workshop on GST which ...

Apparel/Garments | On 23rd Jun 2017

Uware Brands into licensing agreement with Polaroid

Uware Brands has entered into a licensing agreement with Polaroid for ...

Textiles | On 23rd Jun 2017

Ralph Lauren ex-president Tiger of Sweden's new CEO

Hans-Christian Meyer, former president of Ralph Lauren Corporation,...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Suresh Patel
Sidwin Fabric

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

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

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:
June 2017

June 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