Home / Knowledge / News / Textiles / Cotton market looks bearish
Cotton market looks bearish
11
Nov '08
Cotton opened overnight strong reaching a high of 44.10 on friendly stimulus news out of China. This carried over into metals, energy and grains, but ran out of steam at the reopening in the morning.

The cotton prices started falling quickly and at one point fell below 40 cents to fresh 6-year lows. We had good scale down demand from mills, but the bearish USDA report for cotton added 2 million bales to ending stocks. Volume was good today with several spreads taking place on 36,000 futures and 11,000 options as open interest fell 17,000 lots to 157k.

Energy prices tried to rally as well as gold, but we just could not get any follow through. Grains did manage to close off the lows and near the highs as we work toward building a much needed bottom. The dollar tried to go down today, but we could not hold it and ended up closing near the highs. All of the factors at the moment point to further downside testing as the stock markets still look bearish.

In order to hold any gains in commodities, we need to establish a trading range in the stock markets. We did close off the lows and have to see how the overnight markets hold up tonight.

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 it may take until the first quarter to see some significant attempt to invest new money. We are way over due for a rally but if the dollar stays strong that will keep pressure on the markets.

ECOM USA


Must ReadView All

Trump-Xi summit not to occur in March: Steven Mnuchin

Textiles | On 22nd Mar 2019

Trump-Xi summit not to occur in March: Steven Mnuchin

A summit to ink a trade deal between Chinese President Xi Jinping and ...

Pic: Pxhere

Textiles | On 22nd Mar 2019

Australian wool market remains mundane this week

Price variations on all types apart from carding wools were minimal...

European Union offers UK more time to leave bloc

Textiles | On 22nd Mar 2019

European Union offers UK more time to leave bloc

Prime Minister Theresa May has been offered two weeks’ Brexit...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek, Kannbar

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

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

Yash Maniyar, Rekha Maniyar

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Pratik Agarwal,

Pratik Agarwal

Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Robert Brunner, Devereux

Robert Brunner
Devereux

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

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