Home / Knowledge / News / Textiles / Cotton trade in a very narrow range
Cotton trade in a very narrow range
31
Jan '08
Cotton traded in a very narrow range most of the day as we waited for the Federal Reserve announcement to give prices some direction. Expectations were met with a 50 basis point cut in the Fed funds rate and the discount rate.

This immediately sent stocks higher after trading sideways to lower most of the day. However, after more than a 200 point turn around, the market closed lower on the day with some late profit taking.

We are starting to form a strong resistance line in the Dow above 12,500 as we have failed to close above this level since the sell off last week. Cotton traded on light volume most of the day with 25,000 futures and 9,000 options.

Cotton did manage to close near the highs as soybeans were up as well, but corn and wheat closed lower. The weak close in the stock market could have a negative effect on the foreign markets overnight and may add pressure to commodity prices.

However, the export sales report should be strong tomorrow, but the shipments will probably remain average as we are expecting sales between 400-500k and shipments between 150-250k.

The big news continues to be the bad weather in China which is weighing on the power grid and has many mills projected to be off line for extended periods of time. Cert stocks rose back above 500k today with 50k awaiting review and open interest rose slightly back near 270,000 contracts.

RSI is near 50 and prices are holding the low at the 50-day moving average near 67.00 as this trade channel should hold up short term.

The grains and other commodities are finding some strength along with a weaker dollar. U.S. stocks tried to rally on the positive news reported by the Fed, but we are still in a bear market as Asia and Europe have also been struggling to rebound after last weeks correction.

It appears the housing market slowdown and the fears of recession will be enough to keep a lid on the markets short term.

Click here to view more:

ECOM USA Inc


Must ReadView All

Respresentatives of over 30 Chinese companies in a meeting with officials of Kazakh Invest National Company; Courtesy: primeminister.kz

Textiles | On 17th Aug 2018

Kazakh-China cooperation in textiles explored in Astana

China and Kazakhstan have immense potential to cooperate in textiles...

Courtesy: Pexels

Textiles | On 17th Aug 2018

AWEX EMI closes at highest ever level of 2116ac clean/kg

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI)...

Courtesy: VF Corporation

Apparel/Garments | On 17th Aug 2018

VF Corporation shifting global headquarters to Denver

VF Corporation, one of the largest apparel, footwear and accessories...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes 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


August 2018

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

news category


Related Categories:

Advanced Search