According to Angel Commodities, expect cotton futures to trade sideways to down on reports of sufficient stocks in the country due to good production, lower exports prospects and higher imports prospects.
Angel Commodities' report on Cotton
Cotton futures on MCX closed lower on Monday due to higher 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. The USDA raised imports projection by 129,412 bales to 29.47 lakh bales, which is 4.6% higher on month and 115% higher compared to last year imports.
We expect cotton futures to trade sideways to down on reports of sufficient stocks in the country due to good production, lower exports prospects and higher imports prospects. Yarn production in the country is expected to be lower this year. Poor response to state auction in China may support prices.
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