Home / Knowledge / News / Textiles / Market gets some good fundamental support
Market gets some good fundamental support
12
Sep '08
Another inside trading day as the market has managed to hold the 63.50 low and bounce closely on either side of 64 as we await the news from the USDA tomorrow. Sales and shipments today were better than last week, but at only 138k we are not getting the demand we need to stop the bleeding in cotton prices.

However, we made good sales again this week and the report could be slightly friendly tomorrow and help consolidate a bottom. The big story at the moment is the weakness in grains which is still weighing on the market. Volume remains soft with 15,000 futures and 10,000 options, and open interest remains unchanged near 218k without any signs of increasing soon.

Cotton could be setting up for a much needed bounce, but we need to hold the current lows at the moment. The stock market managed a nice reversal today inspite of more bad news coming from the financial sector.

The break in oil is starting to have some positive effects on the economy as well as the stronger dollar. Tomorrows numbers from the USDA will be expected to be slightly bearish overall, but do not expect any significant moves in production or consumption until later in the 4th quarter.

We could be setting up for a 4th quarter rally in oversold equities, but commodities look like they may have more downside as the large Northern Hemisphere crops collide with reduced global demand.

We are holding the lows near 63.50 which is the same level K'08 bounced from earlier in the year. We are getting some good fundamental support, but the technicals have turned negative and this week, we are crossing lower on the MACD. Considering the low open interest in cotton and the holiday mood from Ramadan, cotton is in a tailspin and will need some good sales or spec support in order to rebound.

We continue to test the lows and it is hard to say where the bottom may be, but it feels like it is close. This will depend on outside markets, but a short term bottom may be in place near the 63 cent level?

Click here to view more:

ECOM USA Inc


Must ReadView All

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Top executives
Textile industry

It will take some time for the people to change their buying choices

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Marten Alkhagen
Swerea IVF AB

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

Eamonn Tighe
Nature Works LLC

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search