;
Home / Knowledge / News / Textiles / Cotton market fundamentals continue to look bearish
Cotton market fundamentals continue to look bearish
13
Feb '08
Cotton continues to follow the grains up, down and sideways and today it happened to be down. We absorbed some option expiration selling on Monday and managed to close above 67 cents. We also made a run at the lows today based on further weakness in grains, energy and metals despite a friendly bounce in the stock market.

Trade buying came in on the lows to support the market, but eventually failed and closed in the middle of the range. Volume was strong with 40,000 futures and 15,000 options as the main feature continues to be the roll from H'08 forward as K'08 has now become the month with the largest open interest.

Spec hedge numbers confirmed a mostly unchanged position for the spec longs at 24.5%. Open interest did come down today and will continue to be under pressure into the delivery period as you can see the breakdown on page 2 in attached PDF. Cert stocks continue to grow with 530k and 75k awaiting review as this will encourage spreads to stay at full carry and better.

The cotton market fundamentals continue to look bearish, but in the end, we will have to get a correction in grains to have any chance of a sustained pull back in cotton. At the moment, the H'08 delivery does not look like it will put up a fight and we will probably see a smooth transition to K'08 as the market grinds lower and we wait to uncover fresh demand for second quarter.

The moving averages continue to get closer to crossing which may give the technicalsignals for more sell stops. We did close below the 50 day moving average which is close to 50% retracement and may uncover some more sellers if demand does not surface as China is still in holiday mode.

We continue to see good scale down trade buying under 66.50 and bounced back close to 67.50 before closing weaker. Fund rolling will continue with only 7 trading days before FND, and unless there is a stopper, we may continue to test the downside.

Click here to view more:

ECOM USA Inc


Must ReadView All

Pakistan-Italy MoU to expand economic, trade cooperation

Textiles | On 14th Dec 2018

Pakistan-Italy MoU to expand economic, trade cooperation

Pakistan and Italy recently signed a memorandum of understanding...

South African parliament ratifies AfCFTA

Textiles | On 14th Dec 2018

South African parliament ratifies AfCFTA

The South African parliament recently ratified the agreement...

Jordan PM lays foundation stone for Chinese textile unit

Textiles | On 14th Dec 2018

Jordan PM lays foundation stone for Chinese textile unit

Jordanian Prime Minister Omar Razzaz recently laid the foundation...

Interviews View All

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Viral Desai, Zenitex Mill Pvt Ltd

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Mukesh Agarwal & Rajesh Agarwal, Madhuram Fincap Pvt Ltd

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Pratik Agarwal,

Pratik Agarwal

Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Iacopo Pardini,

Iacopo Pardini

Founded in 1953, Italian engineering company Arioli Spa started...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

Statex Produktions & Vertriebs Gmbh, founded in 1978 and headquartered ...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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