Home / Knowledge / News / Textiles / NY cotton futures continue to trade lower
NY cotton futures continue to trade lower
08
Oct '08
After a nice overnight bounce, the market could not hold on to the gains and we eventually made it all the way back to unchanged and lower. There is still too much uncertainty out there and we continue to have panic selling as the investors are afraid to buy.

Global economic weakness and uncertainty will keep the markets in check until we get some sign of stability. This may arrive over the next six weeks as we keep pushing 5 year lows and the election in November could stimulate consumer confidence. Volume was average with 15,000 futures and 12,000 options, but open interest keeps falling as we are now below 190k.

Sales have been very strong this week as we bounce along the 18 month lows and mills are able to make money at these prices. We are seeing post Ramadan interest in Turkey and Indonesia and China is trying to fill year end quotas for cotton that must arrive before December 20th.

Some rain in West Texas was not a problem this week as most cotton is not open and temps are staying in the 70's. We can see good fundamental demand, but the technicals still look weak even though we are very oversold in the RSI at 25%.

The U.S. economic picture is still 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 a bottom in sight. The fear of economic slowdown is worldwide and the commodity prices are affected accordingly. We're trading in the 50's range and demand is strong for nearby shipment.

However, the decreasing world demand is keeping the buying hand to mouth. It looks very bearish technically and the MACD crossed downwards not long ago. Though it's not possible to pick a bottom yet, the deeper the drop, the sharper the bounce will be.

Click here to view more:

ECOM USA Inc


Must ReadView All

May 31 deadline for registration of chemicals under REACH

Textiles | On 23rd May 2018

May 31 deadline for registration of chemicals under REACH

May 31 is the final deadline for companies to register all chemicals...

US cotton production projected to decline in 2018: USDA

Textiles | On 23rd May 2018

US cotton production projected to decline in 2018: USDA

US cotton production is forecast at 19.5 million bales, nearly 7 per...

Pakistan's textile exports up 8.13% in July-April FY18

Textiles | On 23rd May 2018

Pakistan's textile exports up 8.13% in July-April FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Sonam & Paras Modi
SVA

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

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


May 2018

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

news category


Related Categories:

Advanced Search