Home / Knowledge / News / Textiles / Cotton prices drop by 15% this week
Cotton prices drop by 15% this week
11
Oct '08
Cotton traded lower based on the international stock market meltdown which started in Asia and spread through Europe and even affected the U.S. on the open until we rebounded.

Volume was average today with 16,000 futures and 21,000 options as traders keep taking down side protection in this uncertain environment. Cotton fell 15% this week and we have now reached a point where the physical market cannot converge with the future price levels. We are at a 17 month low as all commodities are struggling and we may have further down side testing to go.

Take a look at the sharp increase in ending stocks for cotton on page 2 in attached PDF and that also played a big part in today's limit down move. Commitment of traders report today with summary on page 3 in attached PDF also shows how the liquidation of index longs as well as non commercial longs is starting to pick up as open interest keeps falling.

There is good fundamental demand at these levels as we continue to make good sales, but the technical free fall of equity markets worldwide are preventing any support to be found nearby.

We broke a long term support line today near 50 cents that has been in place since we hit 27 cents back in 2002. This along with the continued fear and speculation around the world makes us feel the down side may have further to go.

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

Uzbekistan, UAE explore partnership in trade, investment

Textiles | On 20th Mar 2019

Uzbekistan, UAE explore partnership in trade, investment

Uzbekistan and the United Arab Emirates (UAE) have agreed to increase ...

Sri Lanka's textile exports up 5.7% to $5.317 bn in 2018

Textiles | On 20th Mar 2019

Sri Lanka's textile exports up 5.7% to $5.317 bn in 2018

Sri Lanka’s earnings from textiles and garments exports increased by...

Pic: SDG Knowledge Hub

Apparel/Garments | On 20th Mar 2019

Garment supply chain traceability tool being developed

The UN Economic Commission for Europe (UNECE), the European...

Interviews View All

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Nuno Venda, ROQ

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Tom Adeyoola,

Tom Adeyoola

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

Harsh Shah,

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Melissa Tate, University of New South Wales

Melissa Tate
University of New South Wales

<div><div><div><div><b>Melissa Tate</b>, a well-known scientist currently...

Robin Grankvist, OrganoClick AB

Robin Grankvist
OrganoClick AB

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

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

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

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

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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


March 2019

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

news category


Related Categories:

Advanced Search