Angel Commodities' report on Cotton
Cotton futures on MCX closed lower on Monday amid reports of higher supplies this season through imports and good stocks with the farmers. According to CCI, about 302 lakh bales of cotton arrivals were recorded till 4 th May in the country.
The domestic cotton arrivals in April are higher by 49% on year at 2.64 lakh tonnes (lt) compared to 1.77 lt last year, as per Agmarknet data. As per CAI, the arrivals during March 2017 are higher than that of the corresponding month during last year.
Outlook
Cotton futures are expected trade lower as participants are now waiting for further fundaments news to drive prices. There are reports of higher stock levels coupled anticipation of higher sowing acreage in the country next year due to forecast of normal monsoon.
Moreover, lower exports prospects and higher imports keeping prices under pressure. Poor to average response to state auction in China may support world cotton prices but rapid sowing progress in the US will further pressurize world cotton prices.
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