Home / Knowledge / News / Textiles / Bearish market fails to lure high inventory purchases

Bearish market fails to lure high inventory purchases

25
Apr '08
Today is the first notice day for May08 contract, and the total notices posted were 839. Major issuers were Dunavant house account with 474 notices and JP Morgan customer account with 191. Major stopper was Newedge customer account with 704 notices and the balance scattered among different parties.

With still more than 3,600 contracts in K'08 open interest, more notices are expected to come. Trading today was choppy in thin volume as we looked at outside markets for direction. The friendly overnight ICE open didn't hold well as the overall commodities weakness spilled over to cotton.

As dollar strengthened more than 800 points, prices in crude oil slipped same as in grains. Reinforced by the lower re-open of the Chicago market, majority of today's session was trading back and forth around the 100 point lower level. Prices eventually sank under pressure from outside markets as well as bearish options to settle at near session low.

This morning's U.S. export report (chart on page 2 in attached PDF) proved that overseas mills are in no rush to purchase inventory despite price drops in the NY futures market. Due to the tight profit margin, most mills are only buying hand to mouth. Since there's plenty cotton around, they can afford to play the waiting game.

Also, with selling basis switched from K'08 to N'08, NYF needs to drop another 3 cents to make U.S. cotton competitive in the world market. New sales were slightly improved from 148,800 running bales upland and pima combined last week to 176,900.


Interviews View All

Top executives, Fabric manufacturers

Top executives
Fabric manufacturers

Domestic manufacturers would get an edge over imported products

Neel Sawhney, One Friday

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

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

Rajat Jaipuria,

Rajat Jaipuria

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

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Tiasha Renganathan, Twinery Innovations by MAS

Tiasha Renganathan
Twinery Innovations by MAS

Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, the Association of the Nonwoven Fabrics Industry, serves hundreds of ...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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


November 2019

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

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search