Home / Knowledge / News / Textiles / Cotton continues to follow outside markets
Cotton continues to follow outside markets
Sep '08
After yesterday's fallout in the stock market, we got the jobs report this morning showing a 5-year high of unemployment at 6.1%. This triggered more losses in grains which pushed the cotton spot month to a new one-year low reaching almost 63 cents and dragging the Z'08 to new contract lows at 65.61 cents.

Volume was very impressive with 27,000 futures as we ran through sell stops and found good option trading on the lows with over 30,000 contracts which were mostly seen as friendly.

After almost limit down today in cotton and setting new 1-year lows in Z'08, we should be close to a short term bottom. The export sales report was very negative today with only 24,000 new sales last week, but we did get good inquiries on the lows today.

Bond yields were up strong today as the housing crisis gets worse in the U.S. and interest rates move higher. The global economy is taking a big hit right now as Europe and Asia are starting to show the effects of the U.S. slow down. Cotton will continue to follow outside markets, but looking at the lack of activity in the COT (page 2 in attached PDF) don't expect any big moves.

Technicals are starting to turn negative and after today's collapse we will cross lower on the MACD next week. We tested 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 was ready to test the downside as we broke the recent low at 66.79.

This will depend on outside markets, but a short term bottom may be in place near the 65 cent low today. We still have a lot of time left in Z'08 as well as concern with the weather over the next several weeks which should support the market short term.

Click here to view more:


Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Marcel Alberts

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Paolo Ocleppo
Sandvik Hyperion

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

Bani Batra

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

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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

December 2016

December 2016

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


Browse Our Archives


Advanced Search