Home / Knowledge / News / Textiles / Cotton market bounces back
Cotton market bounces back
17
Oct '08
We had another early sell off as we set a new contract low but managed to bounce off of the 3 year support line at 45.50. See page 2 as it shows a continuous monthly chart for cotton over the last 10 years. Notice the line which represents strong support at the 45.50 level as we have bounced there several times over the last 3 years.

More importantly is that the 2001 low under 30 cents was made when the dollar was at its peak and now with the dollar 30% lower, this 45.50 cent level for cotton actually represents an adjusted price today under 30 cents. Volume was better than average at almost 20,000 futures as well as 20,000 in options.

Demand has been very strong over the last 2 weeks and we have found fundamental support for cotton even for shipments into the first quarter at fixed prices. The stock market also made a knee jerk reaction today after falling over 400 pts to the low 8,000 level where we also have long term technical support.

The 1987 crash also occurred in October and after a 45% fall as well, by the end of the year it had made back 20% of that sell off. Cotton made a similar hard bounce today and closed strong so maybe we can hold this area and at least move sideways to build some kind of technical support going forward.

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 consolidation. MACD is starting to turn north for the first time as we have reached heavily oversold signals which are due for a bounce.

Energy and grains also put in lows today but closed higher as the dollar came down on the close. There will certainly be plenty of volatility going forward as everyone agrees that we are not out of the woods yet, but we are seeing a small trend to buy dips instead of sell rallies as there is some demand to buy with volatility at all time highs.

Click here to view the chart:

Ecom USA Inc


Must ReadView All

Pressure on  Indian textiles exporters to ease by Q3: ICRA

Textiles | On 17th Oct 2017

Pressure on Indian textiles exporters to ease by Q3: ICRA

Pressures on the profit and debt levels of textiles exporters is...

S Korean fashion brands expand overseas amid slump at home

Fashion | On 17th Oct 2017

S Korean fashion brands expand overseas amid slump at home

South Korean fashion firms are keen on tapping into overseas markets...

GMAC urges Cambodia to push fabric-forward rule in RCEP

Apparel/Garments | On 17th Oct 2017

GMAC urges Cambodia to push fabric-forward rule in RCEP

Representatives from the Garment Manufacturers Association of...

Interviews View All

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mike Hoffman
Gildan Activewear SRL

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

October 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
76.9%
No
13.8%
Skip
9.2%

Total Votes: 65

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
61.5%
No
27.7%
Skip
10.8%

Total Votes: 65

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
84.6%
No
10.8%
Skip
4.6%

Total Votes: 65

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
73.8%
No
12.3%
Skip
13.8%

Total Votes: 65


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