Home / Knowledge / News / Textiles / Cotton markets witness roller coaster rides in this week
Cotton markets witness roller coaster rides in this week
04
Oct '08
We had a wild ride in the market this week as trading across the broad has been volatile. Another bank news came out Thursday night when Wachovia Bank's board approved Wells Fargo's acquisition proposal.

Despite the talk with Citigroup on a deal backed by FDIC, Wachovia agreed to be acquired by Wells Fargo's $15.1 billion all stock deal, which is not involving any help from the government.

Wachovia is now in the center of news as Citigroup stands by its previous proposal. The stock market rose by triple digits during the first half hour of trading, and it looked like the market had factored in the possible pass of the House on the financial bailout plan.

The vote came in the early afternoon and it was a go. Feelings towards pass of the plan are still mixed as to whether or not it's going to work out as it's supposed to, but what happens next is to work out the details.

ICE cotton Friday session was flat and light in the early morning trading. It held slight gain for the majority of the session before following the stock market and sliding lower post House vote. Dow was trading at 220 higher pre-vote but completely reversed its course to close with a hefty 157 loss.

All months cotton settled sharply lower as well. The commitment report shows no major changes from last week. The holdings by all groups are slightly reduced as the open interest came down. Index funds reduced their net position further by nearly 2,000 contracts.

The U.S. economic picture is looking bearish and uncertain even with the bailout plan in effect. 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 decreasing world demand proved to the opposite.

It looks very bearish both fundamentally and technically and the MACD crossed downwards not long ago. Though 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

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Silke Brand-Kirsch
Schlegel und Partner

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

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eric Scholler
Groz-Beckert

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

Wendell Rodricks
Wendell Rodricks

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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
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