;
Home / Knowledge / News / Textiles / Cotton moves in narrow range on back of light volumes
Cotton moves in narrow range on back of light volumes
22
May '08
Cotton spent another uneventful day trapped in a narrow trading range on light volume. Cotton and the grains are getting some support from the move in oil prices, but are finding heavy resistance on the upside.

When oil runs out of steam, this could have a very negative effect on cotton. The options seem to have N'08 stuck between 70/75 cents and the Z'08 gets heavy selling pressure above 80 cents. Volume was back to the light side with only 18,000 futures and 9,000 options as cotton looks very passive with little commitment from the bulls or the bears.

Export sales and shipments are expected to be below average considering the record high sales in the previous two weeks. Space is limited at the port and equipment is hard to find. The rising cost of oil has been hitting the transportation industry and forcing fuel surcharges to our export destinations which further keeps U.S. cotton from being competitive.

Sales and inquiries have been quiet this week and expect only some light hand to mouth buying unless we can get N'08 under 70 cents. This would be very unlikely until after options expire on June 13th so we see the short term trading range to hold up well as we continue to trade in a narrow sideways range between 70/72.

Growing cert stocks along with stagnant open interest and lack of demand equal a quiet cotton market. Demand is still hand to mouth and the board is paying merchants to hold cotton with spreads from N'08 to H'09 as wide as 14 cents! That equates to 175 points a month and is the result of record cert stocks approaching 1.5 million bales and growing.

Volatility has also taken a hit and with July FND approaching, we may see open interest also fall back below 250k. Cotton will most likely trade sideways until options expire and then we may test the lows. Cotton can find good demand with the spot month under 70 cents, but the upside is limited as well.

Click here to view more:

ECOM USA Inc


Must ReadView All

Vietnam targets $ 40 bn in textile-garment exports in 2019

Apparel/Garments | On 22nd Jan 2019

Vietnam targets $ 40 bn in textile-garment exports in 2019

The Vietnam Textile and Apparel Association (VITAS) has set a target...

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

Apparel/Garments | On 22nd Jan 2019

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

The number of readymade garment (RMG) factories in Myanmar that...

India to soon have own standard for apparel size: minister

Apparel/Garments | On 21st Jan 2019

India to soon have own standard for apparel size: minister

India will soon roll out a size project for Indian apparel on the...

Interviews View All

Evelyne Cholet, UCMTF

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Ajay Ghariwala, Luthra Group

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Will Qian,

Will Qian

Honghua Digital Technology Stock Co., Ltd. specialises in the R&D,...

Akshat Chaudhary,

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts 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


January 2019

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

news category


Related Categories:

Advanced Search