Mar 21, 2017 12:41 PM IST | Source: Moneycontrol.com

Expect Cotton futures to trade sideways on expectation: Angel Commodities

According to Angel Commodities, expect cotton futures to trade sideways 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.

Expect Cotton futures to trade sideways on expectation: Angel Commodities

Angel Commodities' report on Cotton

Cotton prices on MCX edge higher on Monday as physical demand continue to increase in the current season. Cotton Association of India unchanged its production estimates of cotton in 2016-17 (Oct-Sep) at 341 lakh bales (1 bale = 170 kg), projected in January. The cotton arrivals are in full swing and gap of arrivals compared to last year has narrowed down.

Outlook

We expect cotton futures to trade sideways 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. However, higher stock positions with the farmers and stockists may pressurize prices.

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