Home / Knowledge / News / Textiles / Cotton futures rebounds to finish with triple-digit gains

Cotton futures rebounds to finish with triple-digit gains

28
Apr '08
Cotton prices started the week under pressure but after four down days in a row and closing losses totaling over 500 points, cotton futures rebounded to finish with triple-digit gains Tuesday thanks at least in part to sharp advances in other commodities, a weaker dollar and sky rocking crude oil.

Cotton prices stabilized fairly well the middle of the week but clearly got caught up in a huge wave of general speculative selling in all commodities on Thursday when the US dollar demonstrated possible bottoming action for the second consecutive day.

An unnerving "contrary opinion" report early last week had indicated a gross imbalance of bearish sentiment concerning the US dollar. The theory of contrary opinion dictates that once everyone becomes bullish or everyone bearish as in this case, look out.

The report indicated far too many traders on the same side of the boat. Readers might remember that cotton registered a 90 percent bullish reading on March 3rd, right before the crash. Readings are never more bullish than at the top or bearish at the bottom.

Additionally, widespread publicity the last week or so on food shortages and rationing of rice at major discount stores helped put the "kiss of death" on the bull run on many commodities at least for this week. Those type stories, once they hit the cable news networks or national publications, often attract low quality, "Johnny-come-lately" buyers who are invariably under financed and very vulnerable.

As has happened so often, when they started to lighten, reduce or get out of positions, the door was too small. Case in point, the day the discount club announced their rationing of rice, rice futures went limit down.

Low exports and another depressing domestic consumption report did not help the bull case but still were not the primary reason for lower prices Thursday (Such as technical deterioration, the general meltdown in CRB and follow-through strength in the dollar).


Must ReadView All

Pic: Shutterstock

Textiles | On 10th Aug 2020

Govt changes status of textile research associations

In consonance with the Government of India's vision of “Minimum...

Pic: Shutterstock

Retail | On 10th Aug 2020

EU retail trade volume level returns to pre-COVID level

In June 2020, a month marked by some relaxation of COVID-19...

Pic: Shutterstock

Textiles | On 10th Aug 2020

Pak TPB to rationalise textile sector tariff structure

Pakistan's Tariff Policy Board has decided to rationalise the tariff...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Trade buzz: This could be a landmark budget

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Nuno Venda, ROQ

Nuno Venda
ROQ

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

Boban Charly,

Boban Charly

Bierrebi designs and manufactures automatic machines that cut fabric into...

N Nithyanandan,

N Nithyanandan

Incorporated in 1999, Purani Textiless Private Limited is one of the...

Abhishek Ralli,

Abhishek Ralli

Founded in 1962 in Agra, Guide Footwear manufactures men’s footwear for...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

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

Silke Brand-Kirsch, Schlegel und Partner GmbH

Silke Brand-Kirsch
Schlegel und Partner GmbH

<div>Schlegel und Partner is the market research and consultancy company...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

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

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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 ...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

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


July 2020

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


Advanced Search