Cotton prices are expected to trade higher: Angel Commodities

According to Angel Commodities , 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.

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Angel Commodities report on Cotton
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.

Domestic update

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.

Outlook

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.

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