;
Home / Knowledge / News / Textiles / Cotton market looks bearish
Cotton market looks bearish
14
Mar '08
The cotton market took a much deserved breather today as the volume came down to somewhat normal levels with only 20,000 futures and 50,000 options.

The market opened higher overnight, but gradually came off under bearish options and weak export sales that weighed on the market. We did manage to find support under 81.00 cents and held up better than yesterday by only going 150 pts lower compared to limit down.

Wheat and grains opened higher and tested the high from yesterday before coming off near the close which also weighed on cotton. Technically we are at new highs in wheat and corn, but soybeans have come off significantly from the 1570 high, but did close up on the day.

However, the fundamental picture for cotton is getting worse considering the inflating stocks to use ratio near 50% and the lack of demand looks like this downside correction is not over yet. The stock market managed to close firm as we get closer to the FED announcement next week to possibly continue cutting interest rates.

Export sales including Pima still were not able to break 100k and we shipped the same 4 week average 200k which would keep us from making the USDA target even after revisions earlier this week. With cotton at these levels, we also are hearing about more acres going to cotton and we still have the technical island reversal pattern hanging over the market.

Technically, the market is a real roller coaster and the fireworks don't look like they are going to stop anytime soon. However, if anything the last several sessions may have set up some extreme limits where we could trade short term. Currently we have a very bearish fundamental picture, but there seems to still be good spec and hedge fund buying which we found today.

The upside may continue to run into trade scale up selling as the trade try to limit downside exposure, as we are currently caught between two gaps at 75.12-75.28 and 83.75-85.28.

Click here to view more:

ECOM USA Inc


Must ReadView All

93% remediation in Alliance-affiliated factories complete

Textiles | On 17th Dec 2018

93% remediation in Alliance-affiliated factories complete

Remediation in all the factories affiliated with the Alliance for...

India should consider 100% FDI in multi-brand retail: CII

Apparel/Garments | On 17th Dec 2018

India should consider 100% FDI in multi-brand retail: CII

The Indian Government should consider permitting 100 per cent foreign ...

Texhong Textile acquires Winnitex for HK$1350 mn

Textiles | On 17th Dec 2018

Texhong Textile acquires Winnitex for HK$1350 mn

Texhong Textile Group, one of world’s largest core spun yarn...

Interviews View All

Jim Desai, Blaiva Fabricaa

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Top executives, Association

Top executives
Association

'Support and Outreach' huge relief for MSMEs

Varinder Singh Jawanda, Trendy Bharat

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Ravi Raj Desai,

Ravi Raj Desai

Himalaya Cotton Yarn Ltd manufactures high quality denier. The spinning...

Apurva Kothari,

Apurva Kothari

No Nasties was the first fashion brand in India to make 100 per cent...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Robert Erichsen, Statex Produktions & Vertriebs GmbH

Robert Erichsen
Statex Produktions & Vertriebs GmbH

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

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

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...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

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

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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