Cotton prices to trade down today: Angel Commodities

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According to Angel Commodities ,We expect turmeric to trade down as supplies may improve due to good prices in physical market. Moreover, export demand may rise in next two – month keep prices in a positive bias.

Angel Commodities report on Cotton

Cotton

Cotton complex traded  on negative note  on  T hursday  on p rofit booking  at higher levels after  good recent rally.  However, t here is growing  demand from textile sector due to limited supplies of quality cotton in the domestic market.

Domestic update

Delayed arrival of monsoon could  affect the cotton acreage in the key  growing regions of Central and South India. Moreover,  scare of pest  attacks such as whitefly and pink bollworm, which caused major losses to  farmers last year and the attempts by some State governments to wean  away farmers from cotton could shrink the acreage of the fibre crop this  kharif season.

 Global Cotton Updates  

ICE cotton futures closed lower on profit booking at higher levels pressured by weakness in outside markets and a stronger dollar.However, it touched highest in over nine months on Wednesday on  concerns over the crop because of rains  and flooding in the southeastern United States.

Outlook

We expect cotton prices may trade lower as market is expecting some  corrections. However,  cotton supplies in spot markets have been  dwindling  while  domestic textile units are ramping up purchases. There  will be renewed buying interest among market participants on reports of  lesser sowing in north India.

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