Cotton Insights for July 28, 2016

  • Cotton prices traded mixed at the various markets of India amid cautious sentiments.
  • Cotton prices went up a tad in major markets of North India on some fresh buying at the lower level. he rise was mainly witnessed in Punjab and Haryana, while ruled flat in Rajasthan.
  • Selected variety Cotton traded better in Central India, while slow off take kept prices mostly flat in South India.
  • Some buying support has been witnessed at the lower level by needy mills which helped Cotton prices to recover.
  • A lot will depend on new Cotton crop and any anomalies due to weather disturbance could push prices sharply up as current stocks is only hand-to-mouth.
  • Spinning units are still in the wait and watch phase and do not want to incur major losses after production of yarn has been eating the profitability of the millers.
  • Farmers are less interested towards Cotton due to poor remunerations early this season followed by pest attack and significantly acreage losses likely this season.