Home / Knowledge / News / Textiles / Cotton market trades on very low liquidity
Cotton market trades on very low liquidity
19
Dec '08
The dollar bounced back today and we will continue to see commodities slide if the dollar can find a bottom. There is no doubt the Fed rate cut on Tuesday was a big factor in pushing the dollar to multi month lows and through 50% retracement from the highs. However, we seem to have found a support level under 80 which allowed the dollar a solid bounce today and weighed on stocks and commodities. Volume was average with 8,000 futures and 8,000 options as open interest remains unchanged.

Export sales and shipments were bearish as we expected, but the cotton market is trading on very low liquidity which is allowing big swings in prices as we saw today where the market traded in a 250 point range. Energy and metal prices slid lower today and grains ran into selling pressure. Stocks are struggling near 9,000 as there is just not enough commitment in the long term economy to keep the rally rolling strong at these levels.

Have to see how the dollar behaves over the short term as cotton struggles near the top of the trading range 41/48. Technically, the dollar is very weak and that is lending support to oversold commodities in general. However, we did see a strong bounce today and have to watch it closely. Cotton is starting to build a sideways trading channel 40/48 as we may be testing the top of the range going into year end. RSI is at 50 and the moving averages are getting closer to crossing so the momentum is certainly looking more positive.

Ecom USA


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Paolo Ocleppo
Sandvik Hyperion

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Rupa Sood and Sharan Apparao
Nayaab

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

Judy Frater
Somaiya Kala Vidya

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

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:
June 2017

June 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