Kapas may remain range-bound in domestic market: Sharekhan

Sharekhan has come out with its report on agricultural commodities. According to the research firm, Cotton international futures are sliding on news of stocks to be released by India and China. Prices may remain range-bound in the domestic market, says Sharekhan.

Cotton prices noticed weak tone on weakness in the overseas market and tight liquidity. Cotton quoted lower in North India on Monday amid limited demand of local mills. Traders said that spinners cut back purchases due to financial closing. Arrivals also dropped but they failed to support the prices. Cotton ready delivery quoted at Rs 4,045-4,135 per maund in Punjab, Rs 4,000-4,020 per maund in Haryana and Rs 4,010-4,020 Rajasthan.

The southern cotton areas of India mainly hot and dry. This favors the final harvest effort for this crop.

AUSTRALIA COTTON CROP IMPACT- Rains that fell in cotton areas of eastern Australia late in January were reported to be mostly favorable, after earlier hot and dry conditions. Heavy rains and storms redeveloped in the key cotton areas at the end February and during the first day or two or March. This rain is unfavorable for open boll cotton. The region has been drier since that time, improving conditions for open boll cotton and the harvest.

Egypt agreed to export 3200 metric tonnes in week ending 21 March- Alexandria Cotton Exporters Association

Cotton international futures are sliding on news of stocks to be released by India and China.

Outlook: Prices may remain range-bound in the domestic market.

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