Moneycontrol
Jan 11, 2017 01:34 PM IST | Source: Moneycontrol.com

Expect Cotton futures to trade higher: Angel Commodities

According to Angel Commodities, expect MCX cotton futures to trade higher as cotton prices were primarily driven by low cotton supply in the local market and also getting supported by the news of purchase by the CCI.


Angel Commodities report on Cotton


Cotton complex continue to trade higher on reports good demand from the industrial buyers and while firm international market also supporting the domestic sentiments. Moreover, the supplies have not peaked in the season which is a major concern. According to CCI, about 103 lakh bales have been arrived in the physical markets. The highest producing states Gujarat and Maharashtra together see arrivals of more than 52 lakh bales.


ICE cotton futures recovers on Tuesday mainly on technical trading and reports of good demand from China. However, weaker export figures from the US capped some gains. As per USDA data, net upland sales of 183,700 RB for 2016/2017 were down 47 % from the previous week and 45% from the prior 4- week average.


Outlook

We expect MCX cotton futures to trade higher as cotton prices were primarily driven by low cotton supply in the local market and also getting supported by the news of purchase by the CCI.

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