Home / Knowledge / News / Textiles / Cotton market settles for low volume narrow trading range
Cotton market settles for low volume narrow trading range
19
Jun '08
After several volatile trading sessions, we settled into a low volume narrow trading range today between 80/82. We did settle on the high end of the range after testing the lows overnight, but the market feels like it wants to consolidate at these levels and possibly test the highs a few more times.

We feel like there is strong enough resistance and trade selling above the market to keep prices in the recent trading range up to 85 cents or the 50% retracement level. Volume was much lower today with only 20,000 in futures and 24,000 options as the market looks like it is waiting for fresh news to trade.

Export sales tomorrow should be lower than last week as demand has come down considerably based on the higher levels in NY. Good precipitation is helping the growing conditions in West Texas and we are not getting too much help recently from other commodities prices.

There is quite a bit of technical congestion above 82 cents and we should continue to see good scale up selling from the trade. Bullish options kept the market supported on dips, but we also had good resistance on the highs which may be setting up for further testing of this range.

Technically, the market still looks friendly, but we could be getting a bit overbought as we are setting up for a seasonal high in the short term. The 9-day MA is getting ready to cross the 50 day moving average so this may set up for more underlying support.

We are getting some rain in West Texas and if anything the cooler temps this week are helping the 20% of poor and very poor cotton in the dry land areas of Texas. Cotton will continue to follow the other commodities prices higher as the dollar and equity markets struggle. Market is finding good resistance at these levels and will have to wait and see if it can break through or we eventually come down.

Click here to view more:

ECOM USA Inc


Must ReadView All

Philippines wearable industry expects 20% export growth

Apparel/Garments | On 17th Aug 2018

Philippines wearable industry expects 20% export growth

The combined export growth of textile, garments and other wearable...

Talks on new minimum wage for next year start in Cambodia

Apparel/Garments | On 17th Aug 2018

Talks on new minimum wage for next year start in Cambodia

The Cambodian labour ministry and relevant stakeholders recently...

Boost research to double yield: Indian Cotton Federation

Textiles | On 17th Aug 2018

Boost research to double yield: Indian Cotton Federation

Despite India being the world’s largest producer of cotton for three...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mr Ambrose Chan
DSG International (Thailand) PLC

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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