Home / Knowledge / News / Textiles / Cotton futures test new lows
Cotton futures test new lows
01
Oct '08
After a disappointing Monday session, Tuesday's stock market regained part of the losses. In mid-morning trading, Dow Jones was trading at 237 points higher, a 2.29% increase on the day. The loss in equity market yesterday was estimated at one trillion dollars thanks to the 777 point drop.

It won't be surprising that investors will want to drop out of their hedge funds investments and stand on the sideline and watch how the situation will develop. Liquidation by the funds across the board was seen so that their investors could be paid.

More pressure on the market is reflected in more volatile trading. Tuesday NY cotton was seen a 315 point trading range. As the market opened at only 20 points below yesterday's limit down price, liquidation on the screen quickly pulled the price lower.

The official low at 55.11 basis Z'08 was posted just one hour after open. As fast as the price dropped, the market recovered itself just as fast and posted today' high two hours later. Spec hedge number is not much different from a week before, although the specs did reduce their holdings in both the long and short contracts. The net position is currently 0.7% long, a 0.4% increase from the previous week.

The U.S. economic picture is certainly not looking good with the bailout plan rejected by the House, neither is the global picture. The weak economic conditions are hitting Asia as well as Europe and there does not appear to be an end nearby. The fear of economic slowdown is worldwide and the commodity prices are affected accordingly. We're trading in the 50's range and demand should come in at this level.

However, the tight credit situation is proved hard on the mills. It looks very bearish both fundamentally and technically and the MACD crossed downwards not long ago. Thought it's not possible to pick a bottom yet, the deep the drop, the sharper the bounce will be.

Click here to view more:

ECOM USA Inc

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Giorgio Mantovani
Corman S.p.A

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

Sonam & Paras Modi
SVA

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

Robert Brunner
Devereux

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

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
January 2017

January 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