;
Home / Knowledge / News / Textiles / Cotton market trades lower
Cotton market trades lower
17
Sep '08
We continue to ride the meltdown in financials and the liquidation of any assets with value which include mostly commodities. AIG was the new flavor of the day as the market continues to hold their breath waiting for the next shoe to fall.

The only good news was that the Fed basically decided to let this market work itself out and not try to offer any short term artificial relief by cutting rates. It looks as if they will hold the rates stable at 2% for possibly the balance of the year.

This gave the dollar a bounce and could possibly have some long term healthy effects on the economy and the markets. Volume was above average today with 35,000 futures and 28,000 options as volatility rose and there was a wave of downside protection buying today which further beat up the market.

Grains metals and energy continue to slide lower as we are seeing profit taking and panic selling takes over the commodity markets even though we are seeing good fundamental support. There are estimates from some that we could get Dec'08 under 60 cents if we continue to see a lack a spec support and mill demand.

We are in the very bearish seasonal pattern which may extend a few more weeks until the middle of October. However, we need to see a bottom in the stock market meltdown to reduce the panic selling in the commodity sector. Until this happens, cotton as well as all other commodities will keep falling lower.

We broke the lows today as there seems to be no bottom in sight short term. We are getting some good fundamental support, but the technicals are still negative. 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 the current financial crisis is forcing banks to liquidate commodity positions which will lead to more downside under the weak economic conditions worldwide.

Click here to view more:

ECOM USA Inc


Must ReadView All

ILO, Sweden to promote decent work in Asian garment sector

Apparel/Garments | On 19th Dec 2018

ILO, Sweden to promote decent work in Asian garment sector

The Swedish International Development Cooperation Agency (SIDA)...

Courtesy: Ikea

Apparel/Garments | On 19th Dec 2018

Ikea to generate 10,000 jobs in Maharashtra over 3 yrs

Swedish furniture company Ikea is planning to hire 10,000, both...

Indonesia signs trade deal with 4 European countries

Apparel/Garments | On 19th Dec 2018

Indonesia signs trade deal with 4 European countries

Indonesia recently completed talks for the Comprehensive...

Interviews View All

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Top executives, Textile industry

Top executives
Textile industry

It will take some time for the people to change their buying choices

Top executives, Textile industry

Top executives
Textile industry

Sustainable fashion is also ‘slow fashion’

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Cem Erdogrul,

Cem Erdogrul

Turkey-based Temsan Air Engineering is one of the leading manufacturers of ...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

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

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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


December 2018

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

news category


Related Categories:

Advanced Search