Moneycontrol
Jan 11, 2018 11:54 AM IST | Source: Moneycontrol.com

Expect Cotton futures to sideways: Angel Commodities

According to Angel Commodities, Cotton futures are expected trade sideways on expectation of balanced fundamentals of good arrivals, improved physical demand from the domestic mills and higher exports demand from neighboring countries


Angel Commodities' report on Cotton


MCX Jan Cotton closed higher on Wednesday tracking firm trend in International cotton and kapas prices in the domestic market. Good physical demand and improved exports are keeping the prices higher. Market arrivals of cotton in the first three months of the 2017 - 18 marketing season starting October are higher by around 43% over corresponding last year. However, based on the healthy market arrival trend of cotton so  far, the Cotton Association of India (CAI) has maintained the crop  size for the 2017 - 18 season at 375 lakh bales (of 170 kg each) in  its latest  estimates. Cotton Corporation of India (CCI) has procured around 5 lakh bales this season of which 4 lakh bales have been procured at MSP and the remaining 1 lakh bales as part of its commercial operations.

Outlook
Cotton futures are expected trade sideways on expectation of balanced fundamentals of good arrivals, improved physical demand from the domestic mills and higher exports demand from neighboring countries. However, lower than expected production in the country may keep prices supported at higher levels.

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