Bearish market fails to lure high inventory purchases
25 Apr '08
3 min read
Major buyers were Turkey with 59,300 bales, Indonesia with 28,200 bales and China with 23,100 bales. Shipments were slightly reduced to 284,900 running bales combined with 85,500 bales leaving for China and 32,500 bales leaving for Turkey.
The false breakout on April 16th, which tested the 82 cents basis N'08 was followed by profit taking sell off, thus negative technical pictures for the past sessions. N'08 has been range trading and tested the near term support at 72 cents today.
The strong lead cotton receives from the outside commodities market, or the CRB index, as well as the inverse relationship between cotton and dollar index are the rationales that have supported the recent market movement.
The cotton market feels like we could move sideways short term with more down side testing in the future. The next support lies in the mid 70 cent range.
marketing@alchempro.com
