Home / Knowledge / News / Textiles / Cotton prices drop by 15% this week
Cotton prices drop by 15% this week
11
Oct '08
Cotton traded lower based on the international stock market meltdown which started in Asia and spread through Europe and even affected the U.S. on the open until we rebounded.

Volume was average today with 16,000 futures and 21,000 options as traders keep taking down side protection in this uncertain environment. Cotton fell 15% this week and we have now reached a point where the physical market cannot converge with the future price levels. We are at a 17 month low as all commodities are struggling and we may have further down side testing to go.

Take a look at the sharp increase in ending stocks for cotton on page 2 in attached PDF and that also played a big part in today's limit down move. Commitment of traders report today with summary on page 3 in attached PDF also shows how the liquidation of index longs as well as non commercial longs is starting to pick up as open interest keeps falling.

There is good fundamental demand at these levels as we continue to make good sales, but the technical free fall of equity markets worldwide are preventing any support to be found nearby.

We broke a long term support line today near 50 cents that has been in place since we hit 27 cents back in 2002. This along with the continued fear and speculation around the world makes us feel the down side may have further to go.

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

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Smita Murarka
Amanté

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

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Mohammad Hassan
Biax Fiberfilm

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

Kerem Durdag
Biovation II LLC

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Wendell Rodricks
Wendell Rodricks

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search