Home / Knowledge / News / Textiles / NY futures continue to advance

NY futures continue to advance

Jul '07
NY futures continued to advance this week, with December gaining 226 points to close at 63.89 cents.

Last Friday's surprisingly bullish USDA acreage report had some interesting implications both from a fundamental and technical point of view.

To the cotton trade it signaled that the US supply situation may turn out to be quite a bit tighter than originally thought, especially now that China is back in the game, and as a result these higher prices may be justified after all.

So far most traders have been in denial of this 12 cents rally, believing that the market would not be able to sustain these elevated levels for long before selling off again. However, we feel that the acreage report has changed the psychology in this regard, with many traders now waiting for an opportunity to buy back at least some of their short futures.

According to the latest CFTC report, which includes futures and options, the trade was 13.8 mio bales net short as of June 26. This is by far the largest short position the trade has ever owned!

When we look at the US supply situation as we head into the new season, we start with beginning stocks of around 9.5 mio bales, to which we may add a 'best case scenario' US crop of 18.0 mio bales.

This would give us total supply of around 27.5 mio bales, or more or less the same amount as a year ago. That's still a lot of cotton, but what is different this time around is that China has been in de-stocking mode this season and has far fewer stocks than last summer, which should force it to be more active on the import front over the coming season.

For technical traders last Friday's rally triggered a strong buy signal, since the market took out resistance on the daily, weekly and monthly chart. December broke above its previous contract high of 63.50, dating back to last August, and it closed 39 points above it.

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 27th Sep 2021

Bangladesh seeks duty-free market access to US

Bangladesh recently urged the US to provide duty-free access to its...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Trainers faced immense challenges as most were not tech-savvy

Textile Industry, Head honchos

Textile Industry
Head honchos

The pandemic has reinstated need for organised retail spaces in Tier II...

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

David Guiho,

David Guiho

Headquartered in Apt, South of France, Delta Plus designs, manufactures...

Daniel Odermatt, Ventile

Daniel Odermatt

Ventile is a registered trademark used to brand a special high-quality...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Steve McCullough & Marco Weichert, Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Steve McCullough & Marco Weichert
Functional Fabric Fair & Design and Development GmbH Textile Consult respectively

Functional Fabric Fair is a trade-exclusive event showcasing the latest...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

<b>Seema Gujral</b>'s designs for her eponymous label revolve around...

Sunita Shanker, Label Sunita Shanker

Sunita Shanker
Label Sunita Shanker

Inspired by the rich traditional crafts of India, Sunita Shanker’s work is ...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

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