According to Angel Commodities, MCX Oct Cotton closed higher on Monday due to good physical demand and reports of delay arrivals in Gujarat and Rajasthan, after three weeks of lower closing.
Angel Commodities' report on Cotton
MCX Oct Cotton closed higher on Monday due to good physical demand and reports of delay arrivals in Gujarat and Rajasthan, after three weeks of lower closing. According to CAI, cotton production in 2018/19 is likely to fall 4.7 % from the previous season to 34.8 million bales, as scant rainfall and an attack of pink bollworms expected to affect the crop yields. This year harvest likely to delayed in both Gujarat and Maharashtra due to late rains and sowing thus the peak arrival season would deferred by more than a month to Dec - Jan, which may result in supply squeeze in Nov. As per CAI, India’s forward export contracts of cotton have more than doubled from about 7 lakh bales in September 2017, driven by increased demand from China.
Cotton futures expected to trade sideways to lower tracking weak trend in international prices. However, reports of cancellation of cotton export orders and improving domestic area may pressurize prices as the harvesting season comes near.
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