Home / Knowledge / News / Textiles / ECOM daily cotton markets recap - 20th June, 2007

ECOM daily cotton markets recap - 20th June, 2007

Jun '07
Wow, just when you thought it was safe to sell the market, the rally that started just over a month ago pushed the Dec'07 to limit up.

After a weak electronic opening based on a larger than expected spec hedge position and favorable weather, the market slowly worked back to unchanged and eventually took out the previous high in Dec @ 59.80.

This proceeded to gain momentum looking for buy stops which were uncovered at 60.35 and this lead to short option covering by the trade in huge volumes that kept the specs and funds rolling right into limit up.

The grains bounced back as well which was another factor as wheat futures locked limit up due to very low yields coming in from the winter wheat which fueled soybeans as well.

The spec hedge report came in 10% above last week at 23.1% long and is obvious that the market is fully controled by specs as we set almost a 10 month high today and closed 10 cents from the lows just over 4 weeks ago.

We attached a chart in attached PDF which evaluates the last 18 months of spec hedge positions and it is very interesting to notice how we have doubled open interest over this period of time.

At the beginning of 2006, open interest was near its traditional levels over the last several years of 100k contracts. By October 2006, open interest had reached 180,000 contracts and by April 9th, 2007 we set a recent record over 230k contracts.

Even though it was very common to see moves of 30-40% by the specs when open interest was at 100K, it has been more common to see moves of only 10-15 % with open interest over 200k.

Must ReadView All

Pic: Shutterstock

Textiles | On 27th Sep 2021

China's infrastructure plan to spur domestic demand, economic change

China’s State Council's executive meeting recently adopted the 14th...

Pic: Shutterstock

Apparel/Garments | On 27th Sep 2021

AAFA calls for tariff relief as US industry deals with shipping crisis

American Apparel & Footwear Association president and CEO Steve Lamar ...

Pic: Shutterstock

Textiles | On 25th Sep 2021

EU extends GSP plus status for Pakistan with 6 new conventions

The European Union (EU) has extended its general system of...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Gus Bartholomew,

Gus Bartholomew

<b>Gus Bartholomew</b>, co-founder of SupplyCompass, explains to <b>Subir...

Zayed Moyeen,

Zayed Moyeen

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

Michaela Griggs & Peggy Schulz, Barco Uniforms

Michaela Griggs & Peggy Schulz
Barco Uniforms

Founded in 1929, Barco Uniforms started as an apparel company for beauty...

Shaan Sethi, Jaanuu

Shaan Sethi

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

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj

Samshek is a fashion forward tech brand which combines digital experience...

Gaurang Shah, Label Gaurang Shah

Gaurang Shah
Label Gaurang Shah

Hyderabad based designer <b>Gaurang Shah</b>, has been traversing the...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah &amp; Sandeep is a luxury menswear label...

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