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Cotton prices to trade sideways to positive: Angel Commodities

According to Angel Commodities, MCX June Cotton corrected on Thursday as prices have been traded in a narrow range due to mixed fundamentals. A higher stock in the country and higher expected cotton exports to China from India may increase fivefold in coming cotton season is keeping prices sideways.

June 29, 2018 / 11:50 AM IST
Cotton

Cotton


Angel Commodities' report on Cotton


MCX June Cotton corrected on Thursday as prices have been traded in a narrow range due to mixed fundamentals. A higher stock in the country and higher expected cotton exports to China from India may increase fivefold in coming cotton season is keeping prices sideways. There are reports of good export demand and lower pace of kharif sowing in the country. Cotton acreage till last week was down by 16 % on year to 20.7 lakh hac, according to the farm ministry data. The fall in area of cotton was mainly due to delay in arrival of monsoon over Gujarat, one of the largest growers of the commodity.  According to commerce  ministry data, cotton exports in April is about 8.23 lakh bales, up  by 86.13% on year. Exports for the season are only higher by7% at 51.21 lakh bales in cotton year 2017/18 started on October.  Bangladesh (19.2 lakh bales), Pakistan (9.6 lb) and Vietnam ( 9 lb) are the top cotton  export  destination in CY 2017/18.


Outlook
Cotton futures are expected trade sideways to positive on higher demand but weak international prices and expectation of higher acreage of cotton due to good prices may keep prices sideways.

For all commodities report, click here


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first published: Jun 29, 2018 11:50 am

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