;
Home / Knowledge / News / Textiles / Pressure on cotton prices this week - O.A. Cleveland
Pressure on cotton prices this week - O.A. Cleveland
28
Jan '08
The past week was an excellent lesson in human emotions, panic, economics, the global economy and protectionism. Just as the market often does…It gives the test first and the lesson afterward. Cotton and other commodity and equity markets came away a bit scarred, but still with a solid base of support for a promising year.

Cotton prices corrected after limit up moves two weeks ago with a limit down move. As stated two weeks ago, cotton prices are headed higher, but with some bloody street fights along the way. Too, the cotton market will remain subject to considerable volatility.

The pressure on cotton prices this week was associated more with the U.S. and global economies and with the other commodity markets more so than with actual cotton fundamentals.

The well documented bursting of the U.S. housing/financial speculative bubble months ago culminated with a panic in the Asian equity markets at the beginning of the week and sent the U.S. equity markets on a free fall. That free fall sparked a panic in the agricultural commodity markets as speculators pulled vast sums of money out of all markets due the panic in the equity markets.

The quick drop in grains and oilseeds sparked a corresponding drop in the cotton market as speculative funds exited the cotton market in mass-most likely the single biggest exit in a single day in the history of the Cotton Exchange.

The Weekly Export Report could almost be renamed to the "Weekly Bearish Report." Recall the massive sales recorded in last week's report, but with most going to Mexico, a captive U.S. market, the big numbers were meaningless. Net export sales for the week ending January 17 totaled a rather anemic 141,000 RB with Upland sales accounting for 108,400 RB and Pima sales of 32,600 RB.


Must ReadView All

ILO, Sweden to promote decent work in Asian garment sector

Apparel/Garments | On 19th Dec 2018

ILO, Sweden to promote decent work in Asian garment sector

The Swedish International Development Cooperation Agency (SIDA)...

Courtesy: Ikea

Apparel/Garments | On 19th Dec 2018

Ikea to generate 10,000 jobs in Maharashtra over 3 yrs

Swedish furniture company Ikea is planning to hire 10,000, both...

Indonesia signs trade deal with 4 European countries

Apparel/Garments | On 19th Dec 2018

Indonesia signs trade deal with 4 European countries

Indonesia recently completed talks for the Comprehensive...

Interviews View All

Milind Khandwe, Hindoostan Innovation Centre

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Vasanth Kumar, Max Fashion India

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Veronique Lee, Modavanti

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Anupam Arya,

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Tom,

Tom

<div>Inkbank is a leading supplier of inkjet inks and inkjet printing...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


December 2018

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

news category


Related Categories:

Advanced Search