Mar 17, 2017 03:04 PM IST | Source: Moneycontrol.com

Cotton prices to trade sideways to higher: Angel Commodities

According to Angel Commodities, Cotton prices on MCX closed higher while NCDEX Kapas fall on Thursday tracking as Cotton Association of India has maintained its estimate for production of cotton in the country in 2016 - 17 (Oct - Sep) at 34 1 lakh bales (1 bale = 170 kg), it had projected in January.

Cotton prices to trade sideways to higher: Angel Commodities

Angel Commodities' report on Cotton

Cotton prices on MCX closed higher while NCDEX Kapas fall on Thursday tracking as Cotton Association of India has maintained  its estimate for production of cotton in the country in 2016 - 17  (Oct - Sep) at 34 1 lakh bales  (1 bale = 170 kg),  it had projected in January. The supply of cotton in the domestic market is steady so as the demand from the ginners and textile mills.  The cotton arrivals are in full swing and gap of arrivals compared to last year has narrowed down. ICE cotton futures edged higher on Thursday in thin volume trading on weak dollar and stronger US export sales data. Weekly export sales data from the U.S. government showed net upland sales totaled 316,500 running bales for the week ended March 10, up 27 % from the previous week.

Outlook

We expect cotton and kapas futures to trade sideways to higher on expectation of good demand from the textile industries as cotton yarn exports to China may increase due to poor response to state reserve auction in China. Expectation of higher stock positions with the farmers and stockists may pressurize prices.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sections
Follow us on
Available On