Login ID:
Password:
Partner Login
Contact Us : 7066511911

WEEKLY: ICE Cotton Likely To Remain Under Pressure Next week

3 Feb 2019 5:45 pm
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 

MUMBAI (Commodities control) - Throughout the week ICE cotton futures traded in a 170-point range between low of 73.15 cents/lb made on Jan 28 and a high of 74.85 made on Jan 31 and finally closed down 49 points for the week.

Total open interest gained by 4268 to 234,985 contracts. March-May spread strengthened to 129 points. However, USDA spot quotation was up by 64 points to 69.81 cents/lb for the week ending 31st January 2019.

Temporary end of US government shutdown supported sentiments as it has now become clear that the USDA will release its next demand supply report. Besides, weak dollar index as FOMC left its benchmark rate unchanged and said it would take a “patient” approach toward further hikes also underpinned sentiments.

Moreover, export sales for the week ending December 20 remained also buoyant. USDA export data showed net sales increased significantly for the week to 373,100 running bales (RB). It also showed exports at 14,700 RB, up 44 percent from the previous week.

Another positive factor for the market was higher crude oil prices on the back of Venezuela crisis.

While, slowing down of the global economy, particularly Chinese economy remained a major concerns and as against this backdrop market is expecting a revision of cotton consumption in coming WASDE report on Feb 8. Other factor which remained negative for market was the news that the US Justice Department was going to prosecute the CFO of Huawei. The new that China has dragged the US to the WTO over tariff dispute also weighed on sentiments.

Adding to woes, US -China trade talk has been postponed to February end. While, the market was expecting that the trade dispute will be settled in this meeting.

The market was trading up till Thursday but fell sharply on Friday on the news that US-China trade talks were postponed to Feb end. The market fell by 76 points and total open interest gained by 3476 points indicating fresh shorts being created in the market.

In the coming week, we may see prices under pressure due to rollover from March to May contract. At the same time market is expecting good export numbers and a downward revision in global crop estimate by USDA which will keep prices buoyant. The market is likely to trade in a range of 70-75 cents/lb for the week.

(By Commoditiescontrol Bureau)


       
  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated
0.0

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  
   

Top | Post Comment  

Latest Special Reports
Weekly ICE Cotton: Prices End Down; Planting Data, Weat...
Egypt MY2019/20 cotton output to drop 31% – USDA attach...
China 2019/20 Cotton Import To Rise By 11% In MY2019-20...
Australia Cotton Production To Fall By 4.34% in 2019/20...
Weekly ICE Cotton: Prices End Mixed; Planting Report, U...
more
Top 5 News
Technical: Mumbai Matar Canada - Further Rally Above ...
Technical: Mumbai Toor Lemon –Pigeon Pea - Upside mom...
Technical: Chickpea (Chana) Indore
Technical: Pigeon Pea (Tur) Akola Bilty – Expect Ri...
Technical: Chickpea (Chana)- Indore- kabuli 42-44 count...
Top 5 Market Commentary
Tocom/ Shangahi Rubber Price (PM)- 26 April 2019
Burma Urad Trades Higher In Kolkata
Maharashtra (Vidharba) Cotton Spot Rates As On 26th Ap...
Bangkok/Kualalumpur Rubber Rates -26 April 2019
Cotton Prices Slightly Firm In North India On Positive ...
Copyright © CC Commodity Info Services LLP. All rights reserved.