Home / Knowledge / News / Textiles / US economic picture becomes bit brighter this week
US economic picture becomes bit brighter this week
16
Oct '08
We had another tough day in the markets as cotton was able to struggle higher early but eventually set new contract lows on the close. We keep following the outside equity markets which have now given back all of the 950 point rally from Monday and looks like they may go even lower.

We have a lack of confidence and panic selling which may take all markets further down before we can get the stability to move higher possibly next year. Volume was average with 12,000 futures and 10,000 options as we are seeing very bearish trades taking place in the options which tells us that the panic is still taking place.

We just don't have any bullish news to help find a bottom in the market. Credit is tight and mill demand is weak combined with 100 million bales of new crop cotton in the Northern Hemisphere pipeline coming on line. We just cannot see a reason for the market to stop going lower until we reach a level that finds buyers and that does not appear to be happening. After blowing through the contract low today of 49.44, there is no technical support line in sight.

We broke the long term upside trend line started back in 2001 when we bottomed out under 30 cents, but the dollar was also much stronger back then so we think the bottom should be closer to mid 40's worst case, but outside markets still have the last say.

The U.S. economic picture became a bit brighter this week as the stock markets found some support and this may lead to a commodity bounce. With RSI at 25, we have reached extremely oversold conditions and should be ready for at least a consolidation possibly in the 50-55 cent range for Z'08.

ECOMUSA Inc


Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Silke Brand-Kirsch
Schlegel und Partner

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

Kerem Durdag
Biovation II LLC

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

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Rupa Sood and Sharan Apparao
Nayaab

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

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

July 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

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

Yes No

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

Yes No

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


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



X