According to Angel Commodities, expect cotton futures to trade sideways to lower as demand on expectation of higher domestic arrivlas.
Angel Commodities' report on Cotton
Cotton futures on MCX closed lower on anticipation of good supplies in coming weeks.. As per physical market participants there are sufficient stocks available with the farmers and stockists. The cotton arrivals are in full swing and gap of arrivals compared to last year has narrowed down. South Indian Textile mills have started to import cotton from West Africa and the US as the landed costs are on par with the prevailing market price in the country.
We expect cotton futures to trade sideways to lower as demand on expectation of higher domestic arrivlas. There are higher stock positions with the farmers and stockists which may pressurize prices in coming weeks. However, expectation of export demand may support prices on poor response to state reserve auction in China.
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