Moneycontrol
Dec 05, 2017 12:47 PM IST | Source: Moneycontrol.com

Cotton prices to trade higher: Angel Commodities

According to Angel Commodities, expected to trade higher on reports of loss of production due to pest attack in three biggest cotton growing states. Moreover, good physical demand from the mills and traders and commencement of procurement by CCI also keeping prices supportive as it is expected to procure about 100 lakh bales.


Angel Commodities' report on Cotton

Cotton prices continue to trade higher on Monday on expectation of big fall in output due to pink bollworm attacks in some states, even though there is little clarity yet on the extent of the damage .Concerns ab out crop quality have also impacted prices. Of late, instances of rejections of cotton bales by buyers have increased.  According to trade sources, about 60 lakh bales have arrived in the Indian markets this season compared to 47.3 lakh balses last year till Dec 1. Production of cotton in India in the  current season started Oct 1 is likely to decline 7 - 8% to around  35 0 lakh  bales (1 bale = 170 kg), primarily due to severe pink  bollworm attacks in Maharashtra , Gujarat and telengana.

Outlook

Cotton futures are expected trade higher on reports of loss of production due to pest attack in three biggest cotton growing states. Moreover, good physical demand from the mills and traders and commencement of procurement by CCI also keeping prices supportive as it is expected to procure about 100 lakh bales.

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