Home / Knowledge / News / Textiles / NY futures find support this week

NY futures find support this week

09
May '08
NY futures found support this week, with July gaining 160 points to close at 70.85 cents, while December advanced 190 points to close at 79.35cents.

It was another very dull week, with trading volume over the last five sessions combined amounting to just 63'693 futures, which is about 20'000 contracts less than what was traded in a single day on March 5.

Even though there was some news for both bulls and bears to trade off this week, neither camp was able to generate any momentum. Earlier this week West Texas was blessed with a surprise "million bale rain", which ordinarily is reason enough to push the market at least a cent or two lower.

But as we have stated last week, the trade has currently not much appetite to increase its already sizeable net short position, knowing fully well that by going short at 70 cents the odds are not stacked in its favor. Hedge funds on the other hand don't care as much about these rains in Texas and are instead focusing on the commodity outlook in general, which improved markedly over the last few days after a threatening correction last week.

Take cotton for example, where the cost of everything from operating machinery, pumping water, fertilizers, gins, transportation, warehousing and ocean freight is linked to the price of crude oil. Even with the great yields many growers have enjoyed over the last few years, the average cost of production has gone up considerably and this floor keeps rising steadily.

The sharp price increase for cotton seed has helped to offset some of this higher production cost, but with the price of crude oil now double what it was a year ago there seems to be a limit as to how low the price of cotton can go.

A lot of mills are obviously finding the current price near 70 cents attractive enough to book a sizeable amount of cotton. For a second week in a row, US export sales were very strong at 681'900 running bales of Upland and Pima combined. This brings the two-week total to over 1.4 mio running bales and is a strong indication that the current price level is finding widespread acceptance.


Interviews View All

Software Firms, Head honchos

Software Firms
Head honchos

Blockchain technology will shorten lead times

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Deepak Jain, Baggout

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Ravi Kant Prakash,

Ravi Kant Prakash

A crucial role in the process of fabric manufacturing is played by the...

Abhishek Ralli,

Abhishek Ralli

Guide group is a government recognised manufacturing house engaged in the...

Joachim Maier,

Joachim Maier

Switzerland-based Uster Technologies AG is the leading high technology...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

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

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 ...

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


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