Home / Knowledge / News / Textiles / Market volume weak on Sept 23
Market volume weak on Sept 23
24
Sep '08
The dollar bounced back today amid debates over the rescue package to stabilize the banking sector. Commodities pulled back across the board after a big up day on Monday. There just does not feel like we have the same buying momentum as we had in the first half of the year. However, the momentum feels more positive and we should keep testing the upside over the short term.

The uncertainty over the banking sector keeps the dollar on the defensive and commodities will benefit, but the upside will be limited. Volume was weak again today with only 11,000 futures and 6, 000 options as open interest keeps falling closer to 200k. We topped out today at 64.25, but grains had closed lower overnight and we felt like the market was due for a pull back after gaining almost 400 points from the lows.

Demand has slowed down at these levels, but the technicals are friendly and could keep the upside momentum rolling. Sales should be good on Thursday and if outside markets stay positive, we should see cotton keep testing the 65 cent level. However, there seems to be a lot of upside resistance so the long term looks like this move will eventually fail just like the others.

Technicals are starting to turn positive and we certainly were due for a bounce after grinding below 60 cents last week. RSI is at 30 and we found good demand at the 60 cent level in Z'08 so this recent bottom should hold up over the short term.

This will depend on outside markets, but the current financial crisis should pump money into the commodity sector. The weak economic conditions are hitting Asia as well as Europe and there does not appear to be an end nearby.

Need to see how the global markets react this week, but with commodity prices bouncing hard on Monday, it looks like we are in for a short term correction in cotton which could try and test resistance at 65/68 cents.

Click here to view more:

ECOM USA Inc


Must ReadView All

Courtesy: ITMA 2015

Textiles | On 21st Jun 2018

Italy to host textile machinery fair ITMA in 2023

ITMA, the trendsetting textile and garment technology platform, will...

Courtesy: Connor Group

Textiles | On 21st Jun 2018

Protectionism top threat to textile sourcing: William Connor

Protectionism is the biggest political factor and threat affecting...

NRF urges US Congress to step in, stop trade war

Apparel/Garments | On 21st Jun 2018

NRF urges US Congress to step in, stop trade war

The National Retail Federation (NRF) recently urged the US Congress...

Interviews View All

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eric Scholler
Groz-Beckert

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

Eamonn Tighe
Nature Works LLC

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

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