Home / Knowledge / News / Textiles / NY futures continue to advance this week
NY futures continue to advance this week
17
Jul '09
NY futures continue to advance this week, with December gaining 233 points to close at 63.46 cents.

Speculators were able take out several resistance levels to extend the rally this week, pushing December to its highest level in eight months. Since making a low of 54.77 on June 22, the market has now gained nearly 9 cents over the last four weeks. What's impressive about this advance is that it happened against all odds, as outside markets were under pressure during most of cotton's rally and physical prices followed the lead of New York only to a small degree. Volume was moderately active but open interest continue to soar and has now gained about 18'500 contracts since June 24th, measuring 124'133 contracts as of this morning.

The storyline has been quite simple in recent weeks, as speculators of all sorts (index funds, large and small speculators) were clearly the driving force behind this strength, while the trade was taking the other side, apparently locking in some attractive basis long positions in foreign growths.

Based on the most recent ICE and CFTC spec/hedge data, and allowing for additional positions that were put on this week, we estimate that the trade may have sold around 2.2 million bales net since June 22, while the corresponding buying has been about equally split between index funds and traditional speculators.

The fact that about half of the net buying over the last three weeks came from index funds is supportive in our opinion, because unlike traditional speculators or the trade, these index fund positions are not price sensitive. Speculators and the trade on the other hand will react to price movement and in this regard it is not insignificant that the trade has sold about twice as many contracts as traditional speculators have bought during this rally, since this has exacerbated an already lopsided spec/trade ratio.

When we look at the current size of positions based on the latest available CFTC data, we notice that large speculators (mostly hedge funds) still have a relatively small exposure in the market with just 2.1 million longs and 0.5 million shorts. These numbers are from last week and speculators have probably added some more longs since then, but the bottom line is that speculators are still not very involved in our market based on historical norms. Also, the very small outright spec short position may explain why we didn't see more fireworks from 'buy-stops' when the market broke through resistance. There was simply not much there to be stopped out.

Compared to speculators, the trade has a rather substantial position, with 2.2 million on the long side and 11.3 million on the short side. The trade's short position has probably increased as well this week and we would not be surprised to see the trade around 10.0 million bales net short in tomorrow's CFTC report. In other words, for every spec long there are about four or five trade shorts in the market! Thedifference is explained with the index fund position, which amounts to about 7.0 million bales net long at the moment.


Must ReadView All

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Poojaa Kumar Deepak
Zeven

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

Arvind Saraf
Triveni Sarees

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

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Paolo Ocleppo
Sandvik Hyperion

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

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sanjukta Dutta
Sanjukta's Studio

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

Silvia Venturini Fendi
Fendi s.r.l

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

Rupa Sood and Sharan Apparao
Nayaab

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

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 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
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

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
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

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
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

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
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


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