Home / Knowledge / News / Textiles / Cotton market to grind lower

Cotton market to grind lower

30
Apr '08
Grains were mixed overnight and cotton found little support as it worked under 71 cents. Grains opened the day lower and after a short term bounce, cotton fell to the lows of the day and started to touch key support levels at 70.50. We are very close technically to a bearish picture in cotton.

If N'08 can break 70 cents, we will have a negative technical picture but the fundamentals should look better with increased demand.

Open interest continues to fall gradually and the cert stocks are rising. We are also seeing some other technical weakness in other commodities while the stock market is holding up and the dollar is also showing some strength.

We have the Federal Reserve meeting tomorrow where we are expecting a 25 point cut to 2.00% and possibly a pause in the future on any more cuts. This may lend some much needed support to the dollar which may have a negative impact on commodities over the long term.

We are in a negative seasonal pattern as we approach the large Northern Hemisphere plantings. We have good conditions in the Memphis Eastern areas while beneficial rain has been reaching the much needed West Texas area. The cotton market feels like we could move lower short term with some good buying opportunities if the demand picks up.

The next support lies at 70 cents, and with RSI at 40, there is a lack of buy signals. The general feel of the cotton market is to grind lower and look to buy dips under 70 cents. The entire commodity complex feels weak at the moment and we will have to keep a close eye on changes in open interest.

Click here to view more:

ECOM USA Inc


Must ReadView All

Pic: Shutterstock

Textiles | On 18th Sep 2020

Uncertainty high, economic recovery strength varies: OECD

With the pandemic continuing to threaten jobs, businesses, health and ...

Pic: Shutterstock

Apparel/Garments | On 18th Sep 2020

Cambodian garment sector may be hit by CLMV exports slump

The pandemic will significantly affect the exports of Cambodia, Laos, ...

Pic: New Look

Retail | On 18th Sep 2020

New Look creditors approve company voluntary arrangement

The company voluntary arrangement proposal of New Look Retail...

Interviews View All

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

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

Sanjay Desai & Ashish Mulani, True Colors

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Sunil Kumar Sharma, Loknayak JPNSSSG Ltd

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Italtex,

Italtex

Italtex is a leading studio publishing fabric trend-books since 1959....

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Anjali Bhaskar has an experience of 12 years in the fashion industry. She...

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


September 2020

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


Advanced Search