Home / Knowledge / News / Textiles / Cotton futures touch near about August '04 lows

Cotton futures touch near about August '04 lows

07
Nov '08
We keep setting new contract lows and today put us very close to the multi-year low from August 2004 at 42.60 c/lb. Looks like we will aim to take that out very soon as all markets remain weak. Energy, metals and grain all took a hit during the day as we keep sliding lower with no help from the weak stock markets and strong dollar.

Bearish options with Z'08 expiration on Friday is also a big reason we are not finding much upside momentum. Volume was better than average today with 22,000 futures and 7,000 options and we finally had a significant increase in open interest with a new 4600 contracts reaching 174k.

Sales and exports were better than expected but still not very friendly with only 241k and 192k in shipments. We are getting steady scale down demand, but the real problem is the uncertainty in the depth of this recession and how much demand will fall. Cotton has taken out almost every target to the downside and we are unable to find support fundamentally or technically that can help us break out of the trend lower. The European market took very strong steps today to support the sagging economy.

The biggest of which was a 150 point cut to 3% in England which was the biggest since 1955 during Churchill. This will support the dollar and be negative for commodities.

Technically we are trying to build a bottom, but it has been a very difficult process. The stock market weakness and strong dollar are two major factors why we cannot hold a bottom. Cotton is still finding good demand at these levels, but the new crop is in full harvest at the moment and that is keeping a lid on the market.

RSI is still in the low 30's, and MACD is undecidedly making a double cross. So much for an election bounce and may take until the first quarter to see some significant attempt to invest new money.

We are way over due for a rally but the dollar stays strong and that will keep pressure on the markets.

Ecom USA


Interviews View All

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Vidhyaa Shankar. S, A Ganapathi Chettiar

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Top executives, Textile industry

Top executives
Textile industry

Technical textiles industry moving back to Europe

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Aaron Spivak,

Aaron Spivak

Canada-based Hush Blankets was founded by Lior Ohayon and Aaron Spivak to...

Erik Sy,

Erik Sy

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

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

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

Robert Brunner, Devereux

Robert Brunner
Devereux

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

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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


October 2019

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

news category


Related Categories:

Follow us on instagram

Follow

Follow Fibre2Fashion On


Advanced Search