Angel Commodities report on Cotton
Cotton complex traded higher yesterday on absence of quality produce in the domestic market coupled with good demand from domestic mills. NCDEX Kapas for Apr’17 closed higher by 1 . 32 % while MCX Jun’16 cotton closed 0.93 % lower.
In the 3 rd advance estimate by government, production of Cotton estimated at 30.52 million bales (of 170 kg each) is also lower by 4.28 million bales than its production of 34.805 million bales during 2014 – 15. Earlier, Cotton Association o f India (CAI) has cut production estimate to 341 lakh bales (of 170 kg each) of the fiber in the 2015/16 season that started on October 1, from 342 lakh bales estimated last month.
Global Cotton Updates
Cotton futures rose on Monday as market participants’ increase their position due to char t based trading at lower prices.In its monthly World Agriculture Supply and Demand Estimate report, USDA raised its outlook for US inventories of cotton to be carried into the 2016/17 crop year but forecast world stocks to decline next year. Speculators cut net long position to 24,306 from 30,397 in the latest week as prices sank ahead of the U.S. Department of Agriculture’s monthly crop report.
We expect cotton prices may trade higher today as there are reports on lower supplies of good quality stock for mills. CCI is active in selling cotton as supplies dwindling in the physical markets . There are expectations of revival in on expor t demand.