Home / Knowledge / News / Textiles / NY futures close slightly higher this week
NY futures close slightly higher this week
06
Mar '10
NY futures closed slightly higher this week, as May gained 65 points to close at 81.82 cents, while December advanced 72 points to close at 74.69 cents.

After May had posted gains of 1680 points (nearly 25 percent!) in a matter of just 15 sessions, it finally ran out of steam and we have since seen a mild correction from Monday's high of 84.60 cents.

However, the change in open interest over the past few sessions indicates that this correction has not been caused by spec long liquidation, but rather by a void of buying near the recent highs. During Tuesday's sell-off open interest jumped by over 5'000 contracts, which tells us that speculators continued to increase their long positions, while the trade and possibly some speculators established new shorts. This is important because it shows that speculators are not exiting the cotton market just yet and that the trade is still determined to sell into this trend.

Although some of this increase in open interest belongs to December, the majority of new bets are still put on in current crop futures. Since February 11, total open interest has been rising from 161'158 to currently 181'662 contracts, an increase of 20'504 contracts, of which just 8'101 were for December and later delivery periods.

What concerns us is that traders keep on selling into this powerful uptrend, believing or rather hoping that the market will sooner or later give them the break they are waiting for. The latest CFTC report shows that as of February 23 the trade had increased its net short position to 12.2 million bales, up by over 1.7 million bales from the week before. Index funds were 7.2 million net long (down 0.1 million on the week), while all remaining speculators were 5.0 million bales net long (up 1.8 million from the week before). Over the last two weeks the trade has added 3.2 million bales to its net short position, which makes it increasingly vulnerable to margin calls in case the market does continue to advance. At its current net short, the trade will have to meet margin calls of over 60 million dollars for every cent the market advances.

Although export sales have clearly slowed down in recent weeks, they are still decent considering that the US has only a little more than 5 million bales for sale. Export sales report showed that for the week ending February 25th a total of 147'100 running bales of Upland and Pima found a home, which brings total commitments for the season to 9.5 million statistical bales, whereof 5.5 million have so far been exported. Shipments last week amounted to 293'600 running bales, a marketing year high, and we believe that the pace of exports will continue at a brisk pace since freight rates are set to increase in two months from now.

On-call report shows that many of these new sales still have their price open, as unfixed on-call sales increased by 306'700 bales net, bringing the total to 5.93 million bales. Open on-call sales onMay and July increased by 185'000 bales last week and they now amount to 3.45 million bales, with just a little over three months to go to get them all squared away.


Must ReadView All

Digital textile printing sector to grow by 20% by 2020

Textiles | On 18th Jun 2018

Digital textile printing sector to grow by 20% by 2020

The digital textile printing sector is expected to have a compound...

Courtesy: Hela Clothing

Apparel/Garments | On 18th Jun 2018

Hela's latest label revolves around underwear, sleepwear

The latest collection of Sri Lanka’s Hela Clothing is revolves mostly ...

Kenya levies higher duties on mitumba import

Apparel/Garments | On 18th Jun 2018

Kenya levies higher duties on mitumba import

Kenya’s treasury secretary Henry Rotich recently raised the duty on...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Sugandha Bhardwaj

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

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Carolin Russ

Weko, Weitmann &amp; Konrad GmbH &amp; Co KG, based in south Germany, is...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Mohammad Hassan
Biax Fiberfilm

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

Suresh Patel
Sidwin Fabric

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

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Igor Chapurin
Chapurin

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

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search