Interviews
Jump in unemployment to cut into sales of textile products
08 Dec '08
4 min read
Nevertheless, there is still a chance that the base building and rebuilding process has begun both here and in China. In reaction to Friday's late stock market rally, most outside markets were trading higher Sunday evening. Additionally, there is a seasonal tendency for the market to move higher once Dec deliveries are settled.
It is vital that the cotton market either hold above contract lows or quickly run out of seller should those lows be violated. A new contract low close would open the door for another five to seven cents down. A close above 4800 would probably provide another three cents to the upside.
Next week USDA releases their supply/demand numbers for December. On a global basis there is no reason to look for anything cheery if Cotlook and ICAC global projections are anywhere near on target. However, with everyone looking for bearish numbers, if there is a surprise, it might be on the bull side. But until demand picks up, rallies will be primarily technical but hopefully provide marketing opportunities.
It is vital that the cotton market either hold above contract lows or quickly run out of seller should those lows be violated. A new contract low close would open the door for another five to seven cents down. A close above 4800 would probably provide another three cents to the upside.
Next week USDA releases their supply/demand numbers for December. On a global basis there is no reason to look for anything cheery if Cotlook and ICAC global projections are anywhere near on target. However, with everyone looking for bearish numbers, if there is a surprise, it might be on the bull side. But until demand picks up, rallies will be primarily technical but hopefully provide marketing opportunities.
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Christian Guinet
French Textile Equipment Manufacturers’ Association (UCMTF)
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
