Home / Knowledge / News / Textiles / Market to see good resistance scale up in cotton
Market to see good resistance scale up in cotton
25
Sep '08
Another pull back today on bearish options as we tested the 60 cent level again on Z'08. There was some call spread selling in the forward months today which shows a bearish outlook for the cotton market going forward. We hit some sell stops and pushed the market lower across the board in commodities.

Cotton did close off the lows and we may start to move sideways in a 60/65 cent range in the short term. Volume was good with 15,000 futures and 18,000 volumes, but the open interest remains on the lows as we just can't get the specs interested in the long side.

Export sales should be good tomorrow and we are getting more strong demand on this pullback in NY. We will see good resistance scale up in cotton and this will depend largely on how well the grains do in the next several weeks.

However, the seasonal pattern is to go lower this time of year and unless we get some surprises in the harvest, the market should move sideways to lower. We will be starting the big Ramadan celebration this weekend and this may dampen interest over the next two weeks in large importers such as Turkey and Indonesia.

Technicals were starting to turn positive and we certainly were due for a bounce after grinding below 60 cents last week. However, we are running into further selling pressures scale up even though there is still good demand at the 60 cent level in Z'08.

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 cents.

Click here to view more:

ECOM USA Inc


Must ReadView All

Textiles | On 18th Aug 2017

Turkey imposes temporary duty on POY from 7 countries

Turkish ministry of economy has announced imposition of provisional...

Textiles | On 18th Aug 2017

GST return filing deadline for transitional credit

For businesses who want to avail the transitional input tax credit...

Apparel/Garments | On 18th Aug 2017

AEPC wants clarity on minimum wages for garment sector

The Apparel Export Promotion Council (AEPC) has urged the Indian...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Marcel Alberts
Eurofibers

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

Marten Alkhagen
Swerea IVF AB

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Jay Ramrakhiani
Occasions Elegance Wear

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

August 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search