Home / Knowledge / News / Textiles / Commodity complex keeps sliding lower

Commodity complex keeps sliding lower

10
Sep '08
Cotton continues to break downside support levels as demand remains hand to mouth and the commodity complex keeps sliding lower.

After such a strong run during the first half of the year which peaked at the end of June, new investment has been non existent and profit taking remains the main driver in depressed energy, grain and metal prices.

The U.S. dollar has benefited, but the stock market keeps getting bad financial news even with the big bail out this week of Fannie and Freddie. Volume was above average, but still below 20,000 futures as the open interest remains neutral to unchanged.

We get a sales report tomorrow which should be more positive and show signs of increased sales starting last week. This week is not different as we have been getting good scale down demand for 4th quarter shipments.

However, the general bearish economic sentiment is weighing on the commodity complex and we may be in store for further downside. We still have major storms in the Gulf of Mexico and several more weeks before the crop is made, so we should get a bounce soon.

We broke long term support levels at 65 today and this lead to some spec selling with scale down trade buying. We are getting some good fundamental support, but the technicals have turned negative and this week, we are crossing lower on the MACD.

Considering the low open interest in cotton and the holiday mood from Ramadan, cotton is in a tailspin and will need some good sales or spec support in order to rebound. We continue to test the lows and it is hard to say where the bottom may be, but it feels like it is close. This will depend on outside markets, but a short term bottom may be in place near the 63 cent level?

Click here to view more:

ECOM USA Inc


Interviews View All

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

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

Top executives, Textile industry

Top executives
Textile industry

Sri Lanka has a good sustainable track record and strong stories to back it

Krishnanand Tripathi, Textrade International Ltd

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Lucilla Booyzen,

Lucilla Booyzen

South African Fashion Week (SAFW) is a B2B marketing platform for fashion, ...

Xavier Martinez,

Xavier Martinez

CADT Software & Drafting was founded in Spain in 1987 by Josep...

Hans Gerhard Wroblowski,

Hans Gerhard Wroblowski

Germany's Monforts is a leading manufacturer and exporter of textile...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

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

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Marcel Alberts, Eurofibers

Marcel Alberts
Eurofibers

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

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

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


October 2019

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

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search