Home / Knowledge / News / Textiles / Cotton futures touch near about August '04 lows
Cotton futures touch near about August '04 lows
07
Nov '08
We keep setting new contract lows and today put us very close to the multi-year low from August 2004 at 42.60 c/lb. Looks like we will aim to take that out very soon as all markets remain weak. Energy, metals and grain all took a hit during the day as we keep sliding lower with no help from the weak stock markets and strong dollar.

Bearish options with Z'08 expiration on Friday is also a big reason we are not finding much upside momentum. Volume was better than average today with 22,000 futures and 7,000 options and we finally had a significant increase in open interest with a new 4600 contracts reaching 174k.

Sales and exports were better than expected but still not very friendly with only 241k and 192k in shipments. We are getting steady scale down demand, but the real problem is the uncertainty in the depth of this recession and how much demand will fall. Cotton has taken out almost every target to the downside and we are unable to find support fundamentally or technically that can help us break out of the trend lower. The European market took very strong steps today to support the sagging economy.

The biggest of which was a 150 point cut to 3% in England which was the biggest since 1955 during Churchill. This will support the dollar and be negative for commodities.

Technically we are trying to build a bottom, but it has been a very difficult process. The stock market weakness and strong dollar are two major factors why we cannot hold a bottom. Cotton is still finding good demand at these levels, but the new crop is in full harvest at the moment and that is keeping a lid on the market.

RSI is still in the low 30's, and MACD is undecidedly making a double cross. So much for an election bounce and may take until the first quarter to see some significant attempt to invest new money.

We are way over due for a rally but the dollar stays strong and that will keep pressure on the markets.

Ecom USA

Must ReadView All

Textiles | On 30th May 2017

CAI estimates 2016-17 cotton crop at 340.5 lakh bales

Cotton Association of India (CAI) has retained its earlier estimate...

Courtesy: World Bank/Claude Renault

Textiles | On 30th May 2017

India’s economic fundamentals remain strong: World Bank

India remains the fastest growing economy in the world – economic...

Courtesy: Dollar Industries

Apparel/Garments | On 30th May 2017

Dollar Industries registers Rs 906 cr turnover in FY17

Hosiery major Dollar Industries Limited registered a turnover of Rs...

Interviews View All

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Dinaz Madhukar
DLF Emporio and DLF Promenade

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

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Kerem Durdag
Biovation II LLC

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

Mohammad Hassan
Biax Fiberfilm

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sanjukta Dutta
Sanjukta's Studio

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

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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