Home / Knowledge / News / Textiles / Cotton market trades lower
Cotton market trades lower
17
Sep '08
We continue to ride the meltdown in financials and the liquidation of any assets with value which include mostly commodities. AIG was the new flavor of the day as the market continues to hold their breath waiting for the next shoe to fall.

The only good news was that the Fed basically decided to let this market work itself out and not try to offer any short term artificial relief by cutting rates. It looks as if they will hold the rates stable at 2% for possibly the balance of the year.

This gave the dollar a bounce and could possibly have some long term healthy effects on the economy and the markets. Volume was above average today with 35,000 futures and 28,000 options as volatility rose and there was a wave of downside protection buying today which further beat up the market.

Grains metals and energy continue to slide lower as we are seeing profit taking and panic selling takes over the commodity markets even though we are seeing good fundamental support. There are estimates from some that we could get Dec'08 under 60 cents if we continue to see a lack a spec support and mill demand.

We are in the very bearish seasonal pattern which may extend a few more weeks until the middle of October. However, we need to see a bottom in the stock market meltdown to reduce the panic selling in the commodity sector. Until this happens, cotton as well as all other commodities will keep falling lower.

We broke the lows today as there seems to be no bottom in sight short term. We are getting some good fundamental support, but the technicals are still negative. 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 the current financial crisis is forcing banks to liquidate commodity positions which will lead to more downside under the weak economic conditions worldwide.

Click here to view more:

ECOM USA Inc

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Paolo Ocleppo
Sandvik Hyperion

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

Marcel Alberts
Eurofibers

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

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 ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search