Home / Knowledge / News / Textiles / NY futures continues to slip this week
NY futures continues to slip this week
Sep '08
NY futures continued to slip this week, with December dropping another 90 points to close at 68.46 cents, while March gave up 100 points to close at 72.99 cents.

This week's price action followed a familiar pattern of late, whereas the market occasionally teases the bulls with a promising up day or two, only to turn right back down thereafter. The market's problem is that there is hardly any follow-through momentum on these up days, as they are primarily the result of some short covering rather than new longs sponsoring the gains.

So far any attempts to break out to the downside have been equally uninspiring, although with many of the outside markets facing renewed trouble it may just be a question of time until we see another test of the 66/67 cents support level in December.

Hurricane Gustav may not have delivered the punch that was feared by many, but it nonetheless brought copious amounts of rains to the cotton areas of the Mid-South, with Greenville, Mississippi, receiving no less than 11.09 inches since Monday, while the majority of other stations reported somewhere between 2 and 8 inches.

It is generally believed that the crop did not suffer too much from these rains because it is a bit later than usual and therefore not as vulnerable, but we feel that only time will show the true extent of any potential damage.

Let's not forget that this region has been rained on since early August, with some locations receiving as much as 20 inches since then, and there were reports of some boll rot before this latest round of downpours. What this area needs right now is a prolonged period of hot and dry weather.

However, the Atlantic is anything but quiet, as two additional storm systems are threatening the US cotton belt. As of this writing, Tropical Storm Hanna is expected to make landfall as a Hurricane somewhere in the Carolinas early Saturday morning. Following behind is Hurricane Ike, which right now seems to be headed for the southern tip of Florida, from where it could still enter the Gulf of Mexico.

Ike packs quite a punch at the moment and has the potential to do a lot of harm. The Southeast is in the same situation as the Mid-South in terms of being already too wet, and therefore any additional moisture from these two systems will not be beneficial.

The market seems to care little about the supply side at the moment and is more concerned about losing demand. The news out of China is not good in this regard, as local prices remain under pressure, signaling that there is plenty of cotton to satisfy mill demand at the moment, especially with new crop just around the corner.

We may therefore not see a lot of Chinese business in the foreseeable future and any potential supply shortage is probably not going to be noticeable until much later in the season.

Adding to the market's woes are concerns about a deepening global recession, as consumer confidence is falling everywhere along with stock and commodity markets. Money is leaving the markets either because investors prefer to move it to safety or because they are forced to de-leverage as credit becomes tighter and many of their bets are going sour. Over 200 Hedge Funds have closed shop so far this year, with the Ospraie Commodity Fund being the latest victim.

Must ReadView All

Apparel/Garments | On 26th Oct 2016

SGS develops 4C chemical management model for apparel

SGS, a leading inspection, auditing, certification, testing, and...

Textiles | On 26th Oct 2016

Platinum Equity acquires International Textile Group

International Textile Group (ITG) has been acquired by Platinum...

Textiles | On 26th Oct 2016

Whitehouse & URI Business Centre start RI textile network

Senator Sheldon Whitehouse and the University of Rhode Island...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Eric Scholler

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Wendell Rodricks
Wendell Rodricks

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search