Home / Knowledge / News / Textiles / Cotton market trades in a very narrow range
Cotton market trades in a very narrow range
31
Jul '08
Cotton continues to test the highs but failing to break through good scale up selling resistance near 75 cents. Grains traded neutral to lower most of the day, but found some late day strength along with oil which helped the CRB put in a positive day.

However, we are still trading cotton in a very narrow uneventful range which continues to indicate we are eventually going to have trouble sustaining these levels. Fundamentals are still very bearish as demand has gotten very quiet with NY at theses levels.

Futures volume was weak again today with only 7,000 lots, but 14,000 options was above average as there was an increased volume of strangles today which indicates the market is comfortable trading the current range.

We are seeing good support in oil below 122 dls/bl and in the short term the CRB index does look oversold and due for a bounce. However, based on the lack of spec participation in cotton and without any bullish technical or fundamental information, looks like more sideways consolidation could take place.

Take a look on page 2 (attached PDF) with a more detailed technical break down and our short term opinion of the market. As long as cert stocks remain at the highs and open interest remains unchanged at 220,000 contracts, we don't anticipate any big swings up or down in the near future.

NYF cotton prices are finding good downside support with the uncertainty of the Northern Hemisphere crop remaining and good hand to mouth buying on dips. However, we still have 114 days of time and descent volatility left in the Z'08 contract which does not expire until November 21st.

MACD has crossed and RSI is closing in on the neutral 50%. We are now at the top of the current trading range, and the range bound consolidation is still likely to last into the near future. At these levels, new sales are very difficult to make as mills wait for better prices to cover forward deliveries. Expect to see further testing of the highs continue but eventually come back down.

Click here to view more:

ECOM USA Inc


Must ReadView All

VF Corporation to split into two independent companies

Apparel/Garments | On 14th Aug 2018

VF Corporation to split into two independent companies

VF Corporation, a global leader in branded lifestyle apparel,...

Courtesy: Good On You

Apparel/Garments | On 14th Aug 2018

Good On You in Oz adds 500 European brands to rating app

Australia-based Good On You’s brand-rating app has recently added 500 ...

Courtesy: USDA/FAS

Textiles | On 14th Aug 2018

US cotton exports in 2017-18 highest in over a decade

Cotton exports from the US in 2017-18 reached their highest level...

Interviews View All

Amardeep Singh
Orient Craft

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

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Akta Adani
India Boulevard

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do 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