Expect Cotton futures to trade higher: Angel Commodities
According to Angel Commodities, expect cotton futures to trade higher on reports of good demand as supplies in the country are diminishing due to lower arrivals.
Angel Commodities' report on Cotton
Cotton futures on MCX closed higher for the second session in a row as the arrivals in the domestic market slow-down in April. The arrivals in the first 20 days in April drops by about 70% to 1.19 lakh tonnes (lt) compared to 3.95 lt in March, as per Agmarknet data. Moreover, probability that the El Nino phenomenon may occur during second half of monsoon month which may affect cotton yield.
We expect cotton futures to trade higher on reports of good demand as supplies in the country are diminishing due to lower arrivals. Expectation of El Nino later in the season may affect cotton yield in the country. Moreover, lower exports prospects and higher imports may keep prices steady. Poor to average response to state auction in China may support world cotton prices.
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