;
Home / Knowledge / News / Textiles / Cotton futures markets continue slipping
Cotton futures markets continue slipping
07
Oct '08
The market continues to slide lower following the weakness in outside markets. We are just seeing panic selling at this point which was obvious after the limit down opening and when option volatility rocketed up to 50% which showed the desperate put buying entering the market.

We have to see some stability in the equity markets worldwide before we can get any new money coming into the oversold commodity markets. The USD is the only green spot on the board as well as gold which normally move inversely, but now there is a flight to secure assets. Volume was above average with 16,000 futures and 18,000 options as open interest keeps falling.

We traded below limit today synthetically almost 50 points lower at certain points in the day and will have to see how the overnight markets react to see if this follows through tomorrow. The spec position decreased from .7% long to 4.7% short this week which goes to show that we continue to see spec liquidation of longs and adding new shorts.

This trend does not appear to be changing anytime soon, but we have reached a level of strong mill demand and just have to wait and see if the specs get on board before the end of the year.

The U.S. economic picture is looking bearish and uncertain even with the bailout plan in effect. The weak economic conditions are hitting Asia as well as Europe and there does not appear to be an end nearby.

The fear of economic slowdown is worldwide and the commodity prices are affected accordingly. We're trading in the 50's range and demand should come in at this level. However, the decreasing world demand proved to the opposite.

It looks very bearish both fundamentally and technically and the MACD crossed downwards not long ago. Though it's not possible to pick a bottom yet, the deep the drop, the sharper the bounce will be.

Click here to view more:

ECOM USA Inc


Must ReadView All

12 Asian garment firms to operate in Haiti by mid-2019

Apparel/Garments | On 13th Dec 2018

12 Asian garment firms to operate in Haiti by mid-2019

At least a dozen Asian garment manufacturing companies will start...

Pakistan evolving export-oriented policies: top official

Textiles | On 13th Dec 2018

Pakistan evolving export-oriented policies: top official

Pakistan is evolving export-oriented policies and is committed to...

No-deal Brexit would drop output, UK firms caution: survey

Textiles | On 13th Dec 2018

No-deal Brexit would drop output, UK firms caution: survey

British businesses expect a sharp drop in output if the United...

Interviews View All

Top executives, Textile industry, India

Top executives
Textile industry, India

The event should be organised every year

Janak Dhamanwala & Sunil Dhamanwala, Jansun

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Manuj Terapanthi, Texaura

Manuj Terapanthi
Texaura

Transparent supply chain and fair trade will boost sustainable market

Iacopo Pardini,

Iacopo Pardini

Founded in 1953, Italian engineering company Arioli Spa started...

Vikram Saria,

Vikram Saria

Shanghai-based Aura Designs Ltd is a leading manufacturer of textile and...

Mark Tokuhara,

Mark Tokuhara

Japan-based FitJoy, a shoe brand for women, has been in the footwear...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

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

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

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

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

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