Home / Knowledge / News / Textiles / Gains & losses at NY futures this week
Gains & losses at NY futures this week
10
Apr '10
NY futures had a mixed performance this week, as May dropped 290 points to close at 78.60 cents, while December actually gained 38 points to close at 75.48 cents.

Even though speculators committed additional money to the long side earlier in the week, thereby boosting futures open interest all the way up to 201'581 contracts by Tuesday, they failed for a third time to generate the necessary momentum to propel the spot month past the 83.29 closing high of March 1. The reaction to this renewed disappointment was swift, with spec long liquidation taking the market down by over 450 points from Tuesday's high of 83.17.

This latest rejection has not only formed a triple top on the chart, but May's close of 78.60 cents pierced through the lower end of a sideways range that has seen prices meander between 78.70 and 84.60 cents intra-day and between 78.77 and 83.29 cents on a closing basis since February 25. Technical traders will also take note of today's heavy volume of over 50'000 contracts and it won't matter to them that this was primarily due to the "Goldman roll".

Even though scale down trade buying and fixations were visible, they were no match for the massive wave of liquidation by speculators. What happens on days, when sell stops get triggered, is that suddenly thousands of contracts need to get sold at certain chart points and they simply overwhelm any type of buying that may be around. Also, when the market sells off like that, traders often pull their buy orders in the hope of getting even cheaper prices.

The certified stock of currently over 800'000 bales has been the object of much debate lately. Merchants have built up the certified stock to deter the market from going any higher and to reign in the hurtful July/Dec inversion that earlier this week had once again widened out to over 800 points. Even though the bull market in NY futures has been validated by a strong physical market, with C&F Far East prices in the mid to high 80's, the certified stock was probably about 6 or 7 cents overvalued when May was trading near its recent high around 83 cents. This has given the trade confidence to oppose speculators at that level.

However, the certified stock doesn't change the fact that US and world stocks will remain very tight until the end of summer, when new crop will finally bring some relief. According to our latest calculation there remain only around 4.5 million statistical bales for sale in the US, which includes the 0.8 million bales of certified stock. This unsold number may actually be even lower, depending on how much of the 612'000 bales that are sold for August onward shipment are going to be supplied from existing stocks. While at 83 cents the certified stock may have no chance to compete with some of the alternatives that are still available, at 76 cents it would once again turn into a fairly attractive lot of physical supply. The current correction could set the market up for another bullish move behind it, if prices become cheap enough to find a home for certified cotton. If the current certified stock were to disappear, it would become quite difficult to replace it from the limited amount of cotton that remains available.


Must ReadView All

UK retail firms urge Hammond to ease business rates burden

Textiles | On 20th Nov 2017

UK retail firms urge Hammond to ease business rates burden

Top British retail company CEOs have urged UK finance minister...

L-R: Surya Ajay Agarwal (Director - Donear), Vikram Mahaldar (MD - OCM) & Rahul Rajendra Agarwal (Director - Donear)

Textiles | On 20th Nov 2017

Promoters of Donear Group acquire OCM Woolen Mills

The promoters of Mumbai-based Donear Group have announced the...

Courtesy: Cornell

Textiles | On 20th Nov 2017

Cornell’s tech allows customisation of woven fabrics

Cornell Professor Steve Marschner and Rhode Island School of Design...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mike Hoffman
Gildan Activewear SRL

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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

November 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
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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