Home / Knowledge / News / Textiles / Cotton market stoops low on Thursday

Cotton market stoops low on Thursday

24
Oct '08
Cotton is generally weak and choppy Thursday session. The low was yet again tested at 48.81 basis Z'08, but good support was found under 49 cents. There is some feeling the low hit last week at 45.66 should hold up in the short term as we are seeing some consolidation taking place here in commodities and equities.

All months bounced back up on the close except the December contract, which caused the spread to widen. The Z'08/H'09 spread has narrowed during the past few weeks to the 260 point area, but settled at the decent 430 point level today. Good volume of rolls came in with the spread going out.

We are seeing good scale down mill demand when we get the front month under 50 cents. This equates to landed prices in the low 60's where mills are comfortable covering the end forth quarter '08 and early first quarter '09. The mills are still hand to mouth and not chasing this drop too far forward. Outside markets will still be important even though cotton has divorced itself somewhat over the short term. The dollar is also very strong and keeping the commodities in check while the equity markets keep suffering from the financial uncertainty.

This morning's export report was decent with 313,700 running bales in sales and 229,000 bales in shipments.

Technicals are starting to look better after a few up days last week and a nice bounce back at the beginning of this week. MACD is starting to turn north for the first time as we have reached heavily oversold signals which are due for a bounce. RSI is at 35, but the fundamental picture looks good and we are starting to stabilize in grains and energy prices.

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 these all time highs.

ECOM USA Inc


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 22nd Jun 2021

UN prioritising protection of Cambodian garment workers

The United Nations system in Cambodia is working together with...

Pic: Shutterstock

E-commerce | On 22nd Jun 2021

Apparel biggest factor in uptick in US consumer spending: Vesta survey

Vesta, an end-to-end online transaction guarantee platform, recently...

Pic: Shutterstock

Textiles | On 21st Jun 2021

S African textile workers to get average wage rise of 5.2% from Aug 1

The Southern African Clothing & Textile Workers' Union (SACTWU) has...

Interviews View All

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Textile Industry, Head honchos

Textile Industry
Head honchos

Strongly believe in 'people first' policy.

Footwear Industry, Footwear Retailers

Footwear Industry
Footwear Retailers

Still struggling to mop up higher sales

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Chendhuran Sundar,

Chendhuran Sundar

Headquartered at Singapore, Crocodile is a global fashion and lifestyle...

Dhirubhai & Arvind Shah,

Dhirubhai & Arvind Shah

It supplies synthetic fabrics to top international brands like M&S,...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Sanjay Raut, Garware Technical Fibres Ltd

Sanjay Raut
Garware Technical Fibres Ltd

Garware Technical Fibres Ltd (formerly Garware-Wall Ropes Ltd) is a...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Anjali Bhaskar, Samatvam

Anjali Bhaskar
Samatvam

Samatvam, a womenswear brand that blends age-old craftsmanship with modern ...

Sandeep Gonsalves & Sarah Gonsalves, Sarah & Sandeep

Sandeep Gonsalves & Sarah Gonsalves
Sarah & Sandeep

Established in 2012, Sarah & Sandeep is a luxury menswear label...

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


June 2021

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


Advanced Search