Home / Knowledge / News / Textiles / Volatile times in cotton market

Volatile times in cotton market

21
Oct '08
The market gave back a good portion of the correction today as we ran into some profit taking after peaking early in the morning over 9 cents higher than the low set on Thursday at 45.66. We are in very volatile times in cotton which has divorced itself from the outside markets at least for the short term.

Volume was very strong today as the big feature was a further collapsing of the Z/H'9 spread below 300 pts from a high over 550 pts 3 months ago.

Z'08 open interest is still at 100k and we have less than a month now to roll out to H'09 which may have lead to some panic buying in of the Z'08 contract. Futures volume was above average with almost 30k in futures and 10k in options. Spec hedge got shorter last week to 8% as you will see in pdf as open interest keeps falling.

We did see some support under 50 cents today as we may be setting up for a sideways trading range between 49/55 cents.Energy, grains and equities had a nice run today and that may have some delayed support for cotton if we can keep that momentum going. Cert stocks are falling and demand remains strong at these levels so we may be setting up for some long needed consolidation as we move into the 4th quarter.

The U.S. economic picture became a bit brighter this week as the stock markets found some support and this may lead to a commodity consolidation. MACD is starting to turn north for the first time as we have reached heavily oversold signals which are due for a bounce.

Energy and grains were strong today even though the dollar was very firm. There will certainly be plenty of volatility going forward as everyone agrees that we are not out of the woods yet, but we are seeing a small trend to buy dips instead of sell rallies as there is some demand to buy with volatility at all time highs.

Click here to read more details:

ECOM USA Inc


Must ReadView All

Pic: Shutterstock

Textiles | On 26th Sep 2020

Global economic forecast not as dark as earlier guess: IMF

Though the global economic outlook is not quite as dark as expected...

Pic: Edinburgh Woollen Mill

Fashion | On 26th Sep 2020

FRP appointed to value Peacocks, Edinburgh Woollen Mill

Edinburgh Woollen Mill Group CEO Philip Day has started the...

Pic: Shutterstock

Retail | On 26th Sep 2020

India plans retail trade policy, settling logistics policy

India plans to formulate a retail trade policy for which stakeholder...

Interviews View All

Sachin Sharma, Gem Enviro Management Pvt Ltd

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Textile Industry, Head honchos

Textile Industry
Head honchos

Cooperate and collaborate for greater good

Textile Industry, Head honchos

Textile Industry
Head honchos

Virtual reality would be the new normal

Marcel Moser,

Marcel Moser

Switzerland-based Benninger is a leading manufacturer of technologically...

Emanuel Fertuzinhos,

Emanuel Fertuzinhos

Founded in 1981, Lisama, a Portuguese company, is a pioneer in the textile ...

Rikesh Mistry,

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

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

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

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

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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


September 2020

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


Advanced Search