Home / Knowledge / News / Textiles / Cotton market report strong session Monday

Cotton market report strong session Monday

Jul '07
Another strong session on NY Monday even though there was a lack of fundamental news to trade on today. The majority of activities revolved around spec and fund buying following through Friday's strong close and positive technical performance.

Market was initially called to open around 80 higher and found good support in this area while the grain markets were seeing weaker prices.

The afternoon session quickly pushed prices up to break the 66 and 67 cents levels basis Z7 hitting a few stops along the way, and created today's high at 6730, setting a new 3 year high. Z7 contract finally settled only 200 points higher at 6663 after almost going up the limit during the session.

Volume was descent for the futures with 16,158 contracts traded on the floor and 19,444 contracts traded electronically, but the options were very impressive with a total estimated volume close to 65,000 contracts: 19,000 calls, 46,000 puts.

This mainly represented protection being taken by the very large trade short position that continues to feed on itself as the market goes higher.

We are expecting a higher spec/hedge position tomorrow as the specs and funds continue to drive the market higher finding less and less resistance as most all of the old crop cotton is hedged and new crop is several months down the road.

Technically the market has broken out of the three year trading range and it is unclear where a short term top may be found. Fundamentally, it will be very difficult to find demand at these levels except for those who have no choice. This is mainly driven by the current tightness between crops, and we will have to wait until the specs finally run out of ammunition.

However, there are plenty of gaps that have been made on this 15 cent rally and the RSI is showing almost 84 today which is way overbought. This market is due for a correction, but after today's rally and a new 3-year high, we will probably have to wait a bit longer.

Click here to view graphical presentation:


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 23rd Oct 2021

FDRA urges US govt to remove tariffs causing kids' shoe price spikes

The Footwear Distributors and Retailers of America (FDRA) has sent...

Pic: Sorbis / Shutterstock.com

Fashion | On 23rd Oct 2021

Calvin Klein & Louis Vuitton top 2 trustworthy brands for US customers

Calvin Klein, an iconic American brand that has existed since 1968,...

Pic: Breuninger

E-commerce | On 23rd Oct 2021

Fashion retailer Breuninger to launch e-commerce portal in Poland

After Austria (2017) and Switzerland (2019), fashion company...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Uniform designing is a numbers game

Textile Industry, Head honchos

Textile Industry
Head honchos

Good tidings expected for textile industry

Textile Industry, Head honchos

Textile Industry
Head honchos

Instagram & fashion will go a long way together

Rajat Kapoor,

Rajat Kapoor

Seraphine is a British maternity brand providing affordable luxury fashion ...

Andrea Pelissero,

Andrea Pelissero

Located near Milan, Italy, and with 50 years of experience in the textile...

Rajesh Vohra,

Rajesh Vohra

A part of the Italy based multinational company Artsana Group, Chicco is...

Sven Ghyselinck, Devan Chemical

Sven Ghyselinck
Devan Chemical

Headquartered in Belgium and with offices in the United Kingdom, Portugal...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

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...

Seema Gujral, Label Seema Gujral

Seema Gujral
Label Seema Gujral

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

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Manish Malhotra, Label Manish Malhotra

Manish Malhotra
Label Manish Malhotra

A multitalented designer and founder of an eponymous label, Manish...

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

October 2021

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

Advanced Search