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

Courtesy: Trinity Kubassek from Pexels

Textiles | On 19th Aug 2018

Australian wool production to fall 5.7% in 2018-19

Shorn wool production in Australia is likely to fall by 5.7 per cent...

Courtesy: Next Level Apparel

Apparel/Garments | On 19th Aug 2018

Blue Point Capital recapitalises Next Level Apparel

Blue Point Capital Partners has recapitalised Next Level Apparel, a...

Retailers approaching 100% inventory accuracy: Study

Apparel/Garments | On 19th Aug 2018

Retailers approaching 100% inventory accuracy: Study

With computer vision use cases maturing, Artificial Intelligence (AI) ...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

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

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Sham Shah

Shamal and Shamal Pvt Ltd is into manufacturing and sales of textile...

Rajat Jaipuria

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Dave Rousse
INDA

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

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Adriano Goldschmied
AG Jeans

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

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


August 2018

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

news category


Related Categories:

Advanced Search