Home / Knowledge / News / Textiles / Cotton market closes slightly higher

Cotton market closes slightly higher

Apr '07
Market closed slightly higher with the majority of action taking place in the swaps from K'07 forward. The N'07 actually became the most actively traded contract as K'07 open interest fell below July's 78,692 contracts. We still have over 70,000 contracts that need to be rolled between now and April 24th in the K'07.

This may even grow higher after option expiration on Friday with many holders of long K'07 puts in the money. Volume traded was estimated at 35,000 contracts with 16,000 trading electronically and 10,000 in options.

The K'07 will continue to be under pressure through first notice day if a stopper does not appear. This is looking very unlikely due to the quantity of cheap equities available and an official AWP estimated to start Friday the 13th of 42.30 c/lb.

This level is the cheapest we have seen since November'06 and should encourage a large amount of loan cotton to be redeemed as we get closer to the new crop blend for the A index predicted to start in the next 6 weeks.

Options expiration could temporarily hold the market close to 52.00 c/lb. based K'07 as some holders of these short puts would prefer to defend their position. However, after options expire on Friday and if a firm stopper does not appear, the K'07 contract could test or even break the contract lows.

This will set up the future for the N'07 contract to follow in the same path as demand is good at these levels, but certainly mills are buying hand to mouth and will wait to cover July shipments forward until N'07 reaches the low 50's.

A new low, indecisive overall though. Moving averages are both trending lower, with the 9 day now at 52.56 and the 50 day at 53.39. Yesterday's action negates a lot of the previous sideways consolidation work, and we can now expect a real challenge at the contract lows at 51.45.

Momentum quickly turned negative with the RSI now down to 42.84 with some more room to the down side possible.

Click here to view graphical presentation:


Must ReadView All

Pic: Shutterstock/humphery

Textiles | On 18th Sep 2021

China wants to join CPTPP; Japan to consult members to respond to bid

Chinese commerce minister Wang Wentao recently submitted an...

Pic: Shutterstock

Textiles | On 18th Sep 2021

Eurozone GDP recovers quicker than expected after lockdowns: EU report

The eurozone economy recovered more rapidly than considered earlier...

Pic: Shutterstock

Apparel/Garments | On 18th Sep 2021

BGMEA urges Canadian buyers to source apparel from Bangladesh

Bangladesh Garment Manufacturers and Exporters Association (BGMEA)...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Quality & affordability to affect market acceptability of new fibres

Textile Industry, Head honchos

Textile Industry
Head honchos

Led by MMF, Indian apparel exports likely to double in next 3 years

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Chini Chouhan,

Chini Chouhan

Founded by Chini Chouhan, her eponymous brand specialises in women's...

Abdullah Mohammad Saad Hossain,

Abdullah Mohammad Saad Hossain

Saad Group is a leading vertically integrated textile group in Bangladesh. ...

Dhruv Toshniwal & Udit Toshniwal,

Dhruv Toshniwal & Udit Toshniwal

Launched a year ago, Fashions Pvt Limited conceptualises and sees D2C...

Shaan Sethi, Jaanuu

Shaan Sethi

Jaanuu, a vertically integrated e-commerce company, has reimagined the...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Silverio Baranzano, Fitesa

Silverio Baranzano

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Megha Kumari & Jigar Mali, Label Megha & Jigar

Megha Kumari & Jigar Mali
Label Megha & Jigar

New Delhi based label Megha & Jigar blends India's unique handcrafts...

Vidur Adlakha & Riccardo Bennidini, La Fuori

Vidur Adlakha & Riccardo Bennidini
La Fuori

With an active presence in US, Italy and India, clothing brand La Fuori...

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


Leave your Comments

September 2021

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

Advanced Search