Home / Knowledge / News / Textiles / Cotton trades higher
Cotton trades higher
03
Dec '08
Cotton made a run at the 48 cent high in H'09 on strength from outside commodities and equity markets. However, after some scale up trade selling and other bearish options based H'09 forward, the market eventually came down. The USD made a small run late in the day but also came off near the close.

Treasuries remain strong as it seems the Fed will keep buying the paper and pushing the yield lower. Grains, metals and energy all came down as well as there just does not seem to be any strong buyers at the top of the range. Volume was low with only 7,000 futures and 13,000 options while open interest remains weak.

Cert stocks are near 900k and falling so this could be friendly long term and the loss of contango is another positive factor that may draw specs back into cotton which has now lost 50% of its open interest in just over 6 months. However, we need to see some stability in energy that may spillover to grains and softs. The short term does not look like that will happen and the USD does not want to come down either, so for now commodities look like they may test the downside again before year end.

Business has also gotten slow but the technicals are still showing a bottom may be in place and just have to wait and see if that is the case.

Technically the dollar is establishing a sideways trading range between 85/88, as we are seeing resistance above 87. The new administration is naming people who will be the new players in the financial crisis going forward and this may help the short term outlook.

The stock market bounced on some potentially good news coming from the auto industry and some profit taking after such a big loss yesterday. Cotton is holding up technically and have to see if we can get the moving averages to cross.

Ecom USA

Must ReadView All

Textiles | On 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Neel Sawhney
One Friday

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

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

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

Wendell Rodricks
Wendell Rodricks

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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
December 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search