Home / Knowledge / News / Textiles / NY futures extend their rally this week
NY futures extend their rally this week
07
Aug '10
NY futures extended their rally this week, with December gaining another 315 points to close at 80.06 cents, while March advanced 289 points to close at 78.00 cents.

Last week we mentioned that the market would not be able to keep rallying on short covering alone and that it needed to see an increase in volume and open interest from new buying in order to generate upside momentum. It seems that hedge funds were listening, because they finally came back as strong buyers of cotton and commodities in general this week.

As of this morning open interest stood at 178'947 contracts, an increase of over 14'000 contracts from the week before, and today's breakout session has most likely added more bets to this number. Volume has improved as well, with more than 20'000 contracts changing hands on big up days, while tapering off on consolidation days, which is what we need to see in an uptrend.

From a technical point of view the bulls must have mixed feelings after performance. On the one hand December broke above its June 16 high of 79.90 cents and managed to close at the highest level since September 2008, which is constructive.

However, once buy stops and additional spec buying had propelled December up to 81.78 cents, the market ran into stiff resistance from trade selling and the close of 80.06 cents must therefore feel more like a rejection than a stamp of approval. October, which is the current lead month on the weekly continuation chart, didn't perform any better since it initially rallied more than a cent above the previous weekly high of 84.94 cents, only to sell off nearly two cents thereafter.

We need to point out though that October's open interest amounts to less than 1'000 contracts at the moment and it is therefore insignificant in the bigger picture, but it nevertheless has some relevance for technicians who look at the weekly chart.

US export sales continued at a relatively strong pace considering that prices had risen last week and merchants were reluctant to offer additional cotton for nearby shipment. For the week ending July 29, export sales amounted to 219'400 running bales of Upland and Pima, with China taking about 80'000 bales.

For the 2009/10 marketing year sales have now reached 14.1 million statistical bales, of which 12.2 million have so far been shipped. With two days still to be added to the final tally, exports will be very close to the USDA projection of 12.25 million bales. About 1.9 million bales will therefore get carried over into the 2010/11 marketing year and get added to the 3.8 million bales in existing commitments, bringing total outstanding sales to around 5.7 million bales.

We have repeatedly written about our suspicions in regards to Chinese ending stocks. This week the China Cotton Association reported that stocks in public warehouses (including stocks in Xinjiang) amounted to just 0.46 million tons at the end of July. To this number we need to add government reserve stocks of around 1.2 million tons, imported cotton in transit as well as consignments (maybe 0.2 million tons), plus whatever mills hold in inventory at their premises.


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Erik Sy

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

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Igor Chapurin
Chapurin

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Silvia Venturini Fendi
Fendi s.r.l

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

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

February 2018

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
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

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
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

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
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

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
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


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