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 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

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Jay Ramrakhiani
Occasions Elegance Wear

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

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search