Angel Commodities’ report on Cotton
MCX Cotton closed lower for the second consecutive session on Wednesday to touch more than a two – week low due to profit booking by the market participants. Moreover, forecast of normal monsoon also weighing on prices. Cotton exports from the country are likely to touch 70 lakh bales in 2017/18, up about 27% from the earlier estimate, due to a surge in demand, particularly from China, as Indian cotton is selling at discount. Moreover, expectation of shrinkage of cotton acreage by at least 10 – 15 lakh ha in coming kharif season in the country due to pest attack also supports prices.
Cotton futures are expected trade sideways to lower on expectation of some technical corrections after the reports of normal monsoon. However, improved cotton exports to China may keep the prices supported above 20,000 levels.
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