Home / Knowledge / News / Textiles / Cotton futures markets touch new lows
Cotton futures markets touch new lows
10
Oct '08
We had a bit of a bounce overnight, but this failed to hold as we set new lows again today. We did see the stock market show an early bounce after the Asian and European markets were up overnight. However, the market struggled to hold the gains and eventually went under unchanged and by 3:00 Eastern Time the bottom fell out and we hit new lows under 9,000!

We've have had a very volatile week and even though the U.S. stock market could not put in a positive day, it is approaching a very strong support level at 7500 which may get tested very soon. Volume was very light today with only 8,000 futures and 4,000 options as we managed to close right at the Z'08 contract low.

We got an average export sales report today of only 250k in sales and shipments which was not what the doctor ordered to trigger some support for a collapsing cotton market. The fundamental case for a bottom in commodities is strong, we just need to stop the bleeding in the financial sector and equity markets.

There is a USDA report coming out Friday which also may have a friendly tone as we look for signals which could support the market at these oversold levels. The stock market as well as commodities just feels overdone and we are due for a bounce.

The U.S. economic picture is still 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 a bottom in sight. The fear of economic slowdown is worldwide and the commodity prices are affected accordingly.

We're trading in the 50's range and demand is strong for nearby shipment. However, the decreasing world demand is keeping the buying hand to mouth. It looks very bearish technically and the MACD crossed downwards not long ago. Though it's not possible to pick a bottom yet, the deeper the drop, the sharper the bounce will be.

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

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Ray Baughman
University of Texas -Dallas

<div>A team of scientists and researchers have discovered twistrons,...

Robert Brunner
Devereux

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Yash P. Kotak
Bombay Hemp Company

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

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