Cotton prices to trade sideways to positive: Angel Commodities
According to Angel Commodities, MCX Jul Cotton closed higher last week due to improved prices in the International prices.
July 30, 2018 / 01:22 PM IST
Angel Commodities' report on Cotton
MCX Jul Cotton closed higher last week due to improved prices in the International prices. However, reports of lower exports and pickup in so wing progress in the Country is pressurizing prices. As per Commerce ministry data, cotton exports in May surged by 27.6% to 5.7 lakh bales as compared to last year. Cotton acreage till last week was down by 8% on year to 10 2.51 lakh hac compared to 111.4 lakh ha las year, according to the farm ministry data. FAS India forecasts marketing year 2018/19 cotton production at 28.7 million 480 lb. bales on 11.85 million hectares but cut its estimate for India's cotton closing stocks i n 2018 - 19 (Aug - Jul) to 14.07 mln bales (1 US bale = 218 kg) from 14.33 mln bales pegged earlier. Market participants are expecting higher imports in coming months as govt increase MSP for cotton by 26 - 28%.
Cotton futures are expected to trade sideways to positive on improved demand, lower acreage and increase in MSP by government. However, weak international prices and expectation of higher acreage of cotton due to good prices may keep prices sideways.
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