;
Home / Knowledge / News / Textiles / Market suffers from lack of liquidity & transparency
Market suffers from lack of liquidity & transparency
07
Mar '08
We could not find sellers on the way up and now there are no buyers on the way down as we continue to suffer from a lack of liquidity and transparency in the market which has traded synthetically four days in a row.

The overnight open was lower and gradually found enough sellers to reach limit down and eventually traded as low as 78 cents synthetically based K'08! The market bounced back and almost came off the limit, but settled 250 pts lower synthetically @ 82.70 based K'08, 84.80 N'08 and 89.10 Z'08.

This first week of 100% electronic trading has had historic volatility and created a synthetic trading range in the spot month of almost 30 cents trading as high as 106.00 on Tuesday and today's low of 78.00. Volume was 41,000 futures and 116,000 options as we are now seeing the profit taking from panic short covering early in the week.

Obviously, this type of trading environment can only be beneficial for specs and ICE shareholders. Any member of the cotton industry including mills, producers and merchants who use the futures and options to hedge physical cotton are unable to benefit from a market that trades with theses erratic swings.

We were expecting some consolidation today based on the overbought conditions and the fact that profit taking had started to enter the market. It is hard to say where the buying will enter the market but after closing under the limit, there is a good chance we could test the 80 cent level in K'08 where wewould return to 300 point limits once again.


Must ReadView All

Vietnam targets $ 40 bn in textile-garment exports in 2019

Apparel/Garments | On 22nd Jan 2019

Vietnam targets $ 40 bn in textile-garment exports in 2019

The Vietnam Textile and Apparel Association (VITAS) has set a target...

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

Apparel/Garments | On 22nd Jan 2019

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

The number of readymade garment (RMG) factories in Myanmar that...

India to soon have own standard for apparel size: minister

Apparel/Garments | On 21st Jan 2019

India to soon have own standard for apparel size: minister

India will soon roll out a size project for Indian apparel on the...

Interviews View All

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Karan Suratwala, Key Textile Accessories Private Limited

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Ashish M Amin,

Ashish M Amin

Premier Looms is a leading provider of cutting-edge machinery and...

Cong Zheng,

Cong Zheng

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

Sandip Bhojani, Manthan Patel,

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Ray Baughman, University of Texas -Dallas

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

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

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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


January 2019

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

news category


Related Categories:

Advanced Search