;
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

Bangladesh jute industry at risk due to old technology

Textiles | On 18th Dec 2018

Bangladesh jute industry at risk due to old technology

Bangladesh’s jute industry is losing productivity and competitiveness ...

Cotton trading pace slows down in Brazilian market

Textiles | On 18th Dec 2018

Cotton trading pace slows down in Brazilian market

With the low quality of the batches available in the Brazilian market ...

Courtesy: Destination Maternity

Apparel/Garments | On 18th Dec 2018

Destination Maternity reports sales of $92.8 mn in Q3

Destination Maternity Corporation, the world’s leading maternity...

Interviews View All

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Nuno Venda, ROQ

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Karan Suratwala, Key Textile Accessories Private Limited

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Suresh P Bagrecha,

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Cong Zheng,

Cong Zheng

The China Textile Machinery Association (CTMA) is a social-economic...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

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

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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