Home / Knowledge / News / Textiles / Crazy day for cotton

Crazy day for cotton

05
Dec '08
Another crazy day for cotton as the outside markets dictates the direction. European central banks made big cuts of interest rates today that were larger than expected from 75 points to 175 points and now all European banks are lending at 2.5% or lower. These are significant cuts from 4-5% that was in place a couple of months ago. This did weigh on the dollar despite the weakness in commodities.

Treasuries continue to take advantage of the housing crisis concerns as Bernanke and others keep talking about lowering long term interest rates. Volume was average today with only 13,000 futures and 9,000 options as we look to be building a trading range for the H'09 with a high at 48.

Sales and shipments were very disappointing today, but the biggest factor was the weakness in outside markets with energy leading the downside move. The old rule that commodities suffer in recessions will keep us in a downtrend much longer. Especially when foreclosure problems and unemployment look like they will get worse before they get better.. The Federal Reserve looks like they are determined to throw as much money at the problems as possible with the current discount rate essentially at 0 for bank to bank lending.

This will eventually lead to inflation concerns down the road which will require interest rate hikes, but that may be 18-24 months from now.

Technically the dollar is establishing a sideways trading range between 85/88. After the ECB announcement, the dollar did test the highs near 88, but eventually came down hard. The stock market also was weak today as we had the big 3 automakers on Capitol Hill who were not giving very optimistic testimony about the future.

Cotton is starting to build a sideways trading channel as we may be heading back to test the lows before moving higher again. Outside markets are still key and look bearish.

Ecom USA


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 26th Oct 2020

25% Bangla garment manufacturing to be automated by 2023

A quarter of garment manufacturing activities in Bangladesh will be...

Pic: Shutterstock

Textiles | On 26th Oct 2020

BCI to cease all field-level activities in China's XUAR

Sustained allegations of forced labour and other human rights abuses...

Pic: Burberry

Information Technology | On 26th Oct 2020

Burberry launches gaming technology for fashion design

Burberry, and digital production agency, Koffeecup have joined hands...

Interviews View All

Jim Desai, Blaiva Fabricaa

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Amit Jain, Shingora Textiles Ltd

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Siddhachakra Weaving (Badiya Fashion),

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Deepak Mundra,

Deepak Mundra

Surat-based Madhusudan Group is a vertically integrated textile...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

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

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

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

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

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

Sweta Tantia, Tahweave & Garo

Sweta Tantia
Tahweave & Garo

Designer Sweta Tantia owns Garo, a couture indutva or ethnicwear brand,...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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 2020

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


Advanced Search