Home / Knowledge / News / Textiles / Further interest rate cut to likely support inflation
Further interest rate cut to likely support inflation
Jan '08
Beginning of 2008 has seen sharp losses in the stock market. Disappointing numbers on employment and manufacturing have contributed to this loss. This week, again, gave the market a weaker home sales report, which is, much weaker than it has been expected.

Dow Jones ended the trading day sharply lower by falling close to 240 points. There are rising hopes in the market that Fed will continue to cut down interest rate. However, the overall confidence level is low and recession fears have prevented stock market to recover its loss.

The possible further interest rate cut will likely support inflation and push the general commodities prices up. As cotton price is lagging compared to other commodities, funds have been increasing their positions since the beginning of the year. It's not hard to see why market is expecting higher prices.

Wednesday session climbed some 50 points higher, supported by the broad higher prices in outside commodities market. Trading was active with some estimated 35,000 contracts in futures and 38,000 contracts in options. Open interest was increased by over 3,400 contracts Monday to reach the current total at 249,072. Specs are at 27.1% long and with potential to
go further longer.

Looking at the chart, we are sticking to the upside trend line and have broken through the trading range established during the last four sessions. March contract successfully broke the 69 cent resistance level that has proven firm lately. The next run will be the 70 cent level from last November.

RSI has grinded above 70% after the two consecutive up trading days. As demand from foreign countries is not rolling in, Thursday's export report is looking sluggish. Though fundamentals don't justify current cotton prices, outside commodities market keep posting a pressure for cotton to follow. Corn and soybeans made a new record high today, as well as the gold prices.

Click here to view more:


Must ReadView All

VF Corporation to split into two independent companies

Apparel/Garments | On 14th Aug 2018

VF Corporation to split into two independent companies

VF Corporation, a global leader in branded lifestyle apparel,...

Courtesy: Good On You

Apparel/Garments | On 14th Aug 2018

Good On You in Oz adds 500 European brands to rating app

Australia-based Good On You’s brand-rating app has recently added 500 ...

Courtesy: USDA/FAS

Textiles | On 14th Aug 2018

US cotton exports in 2017-18 highest in over a decade

Cotton exports from the US in 2017-18 reached their highest level...

Interviews View All

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

August 2018

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

news category

Related Categories:

Advanced Search