Home / Knowledge / News / Textiles / Cotton market to have trouble keeping up
Cotton market to have trouble keeping up
Jan '09
Unemployment rose to 7.2% and the stock market fell further. Cotton and grains still rallied early but cotton eventually fell. The dollar rose late in the day and cotton took profits as we wait for the USDA report on Monday. Grains are rallying due to very dry conditions affecting the harvest in South America, but cotton will have trouble keeping up. Oil and metals are also struggling as the equity markets fall on more bad economic news.

The cotton market does feel overdone but the COT report which is on page 2 shows that non commercials are slowly coming back into the market but open interest is only up slightly. Have to see what the USDA says on Monday, but expect that cotton will continue to struggle at the highs as we now have a spread between NY and the AWP that can redeem cotton at replacement levels.

The basis in the country is weak and demand is hand to mouth so after a few more weeks of sideways testing of the upside we may get a big correction before FND in the H'09.

Technically, cotton is starting to slow down, but the moving averages have crossed and the MACD has not crossed lower. Open interest has started to rise and the specs are turning long so the momentum is there for more upside.

Cotton keeps setting new highs as we set a new 9-week high today. RSI is at 59 and the momentum is certainly looking more positive as we start to enter the more friendly seasonal demand period but the equity markets are struggling and that may spill over into weaker commodities.

Ecom USA

Must ReadView All

Textiles | On 9th Dec 2016

ACIMIT signs MoU with Pakistan textile bodies

In a bid to strengthen the trading in garments and textiles between...

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Suresh Patel
Sidwin Fabric

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Paolo Ocleppo
Sandvik Hyperion

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

Wendell Rodricks
Wendell Rodricks

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Mike Hoffman
Gildan Activewear SRL

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search