Home / Knowledge / News / Textiles / Cotton market finds some scale down trade buying

Cotton market finds some scale down trade buying

Apr '07
FND fireworks as the market found early support, but fell off quickly to set new contract lows based on bearish options and spec sell stops. Surprisingly, the spec hedge report was not as short as we originally expected it might be. Specs who had been .02% long last week only moved 1% lower to.08% short.

This partly explained the weakness as heavy put buying and call selling triggered sell stops by specs who had room to sell. The market did find some scale down trade buying and friendly options which held the new N'07 contract low @ 50.20. Volume was estimated at 13,000 contracts on the floor, 6,000 electronic and almost 15,000 total in options.

Notices were issued yesterday out of Term commodities for 973 notices as the open interest in May fell to 3,432 contracts.

Looks like we may have a few more left to deliver before last notice day for K'07. The CRB index came under pressure as almost every participant in the index had a lower day except for corn. News about the U.S. plantings were also released yesterday showing the crop only 11% planted compared to 21% last year and 16% for the 5-year average.

The West is off to a better start than usual but Texas seems to be the slowest due to low soil temperature. Still too early to have any concerns over the amount of cotton which has been planted so far. Moving averages are both trending lower, with the 9 day continuing it's divergence away from the 50 day at 51.95 compared to 53.83. Momentum continues negative with the RSI down to 32.64, well and truly in oversold territory.

Any positive action yesterday was broken with another record low driven by spec selling. Will have to hold this level for any chance to move higher. Specs seem to have room to sell weakness and the trade buying has slowed down as we will probably see a much smaller export sales report on Thursday.


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

Multi-functional garments will be next big thing

Textile Industry, Head honchos

Textile Industry
Head honchos

Biggest learning was adaptability

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Shivendra Nigam,

Shivendra Nigam

Delhi-headquartered Cantabil Retail India Ltd was founded by Vijay Bansal...

Zayed Moyeen,

Zayed Moyeen

Far East Knitting and Dyeing Industries LTD (FEKDIL) was established in...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by <b>Aprajita Toor</b> were born out of a deep desire to...

Ruma Devi, Gramin Vikas Evam Chetna Sansthan

Ruma Devi
Gramin Vikas Evam Chetna Sansthan

<b>Ruma Devi i</b>s a jet-setting promoter of artisans who has empowered...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

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