Home / Knowledge / News / Textiles / Cotton market completely saturated by spec buying
Cotton market completely saturated by spec buying
26
Feb '08
After a strong week for all commodities, Monday did not take much of a breather as the overnight activity was friendly across the board. Energy, metals and grains had good support and we locked up the limit in wheat. All of this strength leaked into a lagging cotton market, which is having some trouble finding sellers.

Most of the scale up trade selling has been put on hold after such strong rallies since breaking out of our 6 week sideways trading range. First notice day began with over 5,000 H'08 contracts left to liquidate after Term commodities stopped the majority of cotton with J.P. Morgan the largest issuer.

Volume was strong today with 50,000 futures and 53,000 options as we look to the K'08 setting another record high today. Spec long position reached 28.6% from 25.5% last week as open interest is reaching record highs near 280,000 contracts. Cert stocks are growing quickly and are now approaching 600,000 bales with over 50,000 awaiting review.

With the market at these record levels, NY is one of the most attractive places to sell cotton and this stock should continue to grow as we move closer to K'08 delivery. However, the cotton market is completely saturated by spec buying and divorced its behavior from any fundamental factors. Very hard to say where a top might be found as we are only finding strength in the entire commodity complex.

Technically, we have broken all upside resistance targets and are feeding off bullish commodity sentiment. May locked up the limit as we are now reaching a relative strength index at 76 and into overbought territory. The last time the market saw the spot month trading above 76 cents was in 2004.

May has now rallied 10 cents from the low set only 2 weeks ago. General market mood is bullish on technicals and outside commodities market. We will have to see a pull back in the grains before cotton will have a chance to correct. Demand will certainly slow down in the short term, but fundamentals are no longer in charge.

Click here to view more:

ECOM USA Inc


Must ReadView All

India's Kay Ventures aims to turn Karur into knitwear hub

Apparel/Garments | On 20th Aug 2018

India's Kay Ventures aims to turn Karur into knitwear hub

India’s Kay Ventures has teamed up with Hydra Micro Business...

Uzbekistan-China meeting discusses textile cooperation

Textiles | On 20th Aug 2018

Uzbekistan-China meeting discusses textile cooperation

A meeting of the Uzbek-Chinese business forum on cooperation in the...

Moldova wooing Indian investors in textiles, agriculture

Textiles | On 20th Aug 2018

Moldova wooing Indian investors in textiles, agriculture

Moldova is wooing Indian investors in textiles, agriculture and a few ...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

S Ziya Gumuser
Teknomelt

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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