According to Angel Commodities, expect cotton futures to trade sideways on reports of balanced demand and supplies in the country due to good production, lower exports prospects and higher imports prospects.
Angel Commodities' report on Cotton
Cotton futures on MCX recovers on Wednesday on probability that the El Nino phenomenon may occur during second half of monsoon month which may affect cotton yield. Earlier there is little pressure on prices due to good arrivals and sufficient stock levels in the country. The monthly data released by the USDA showed estimated India stocks ending 2016/17 increase by more than 5.02% compared to last month.
We expect cotton futures to trade sideways on reports of balanced demand and supplies in the country due to good production, lower exports prospects and higher imports prospects. Expectation of El Nino later in the season may affect cotton yield in the country. Poor to average response to state auction in China may support world cotton prices.
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