Cotton prices to trade lower today: Angel Commodities

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According to Angel Commodities ,We expect cotton prices may trade lower today on expectation of some corrections form higher levels. However, cotton supplies in spot markets have been dwindling while domestic textile units are ramping up purchases.

Angel Commodities report on Cotton

Cotton

Cotton complex ends  lower  due to correction form higher levels  on  Tuesda y .  NCDEX Kapas for Apr’17 closed  0.32 % down while MCX J un’16  cotton closed down by 0.31 %.  However , steady demand from textile  sector  on limited supplies of quality cotton in the domestic market keeping prices higher .

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 St ate governments to wean  away farmers from cotton could shrink the acreage of the fibre crop this  kharif season.

Global Cotton Updates

ICE cotton futures  fell for the fourth straight session on Tuesday on a  stronger dollar  coupled with  strong  crop  progress in the U . S. The better – than – expected U.S. crop condition ratings caused “speculative liquidation in cotton.  In latest USDA report for 2016/17, world production and  beginning stocks are forecast down, due to lower production in China in  both 2015 and 2016.

Outlook

We expect cotton prices may trade lower today on expectation of some corrections form higher levels. 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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