Angel Commodities’ report on Cotton
MCX June Cotton edged lower on Monday tracking fall in international prices and technical selling at higher levels. Currently, cotton is trading at 22 months highs in the domestic market as Miller and traders are stocking up cotton for the lean season. Moreover, good export demand from China is also fueling the prices. China buys 500,000 bales of new cotton crop from India to be shipped to China in Nov – Dec. T ill last week, India kharif cotton acreage is 18% lower at 9.96 lakh ha vs 12.18 lakh ha year ago. India’s cotton exports are seen rising around 21% on year to 75 lakh bales (1 bale = 170 kg), backed by depreciation in the rupee and higher international prices of the commodity.
Cotton futures are expected trade sideways to higher on report of good physical and export demand, higher exports, diminishing arrivals and expectation of lower sowing expectation in coming season may keep the prices supported.
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