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

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Textiles | On 18th Jan 2017

Schoeller unveils water-repelling fabric ‘bling’

Schoeller textiles, Swiss textile company, has released its new...

Textiles | On 18th Jan 2017

China lays out plan to boost foreign investment

The Government of China has outlined measures to boost foreign...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kerem Durdag
Biovation II LLC

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
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