Cotton Insights for August 01, 2016

  • Cotton prices traded mixed today at the major markets across the country.
  • Cotton gained by Rs 10-20/maund in major markets of North India while remained steady in Maharashtra on slow demand.
  • North Indian mills are still purchasing Cotton hand-to-mouth basis and not taking major risks as the yarn sales are comparatively low.
  • The restricted supply coupled with rising demand has further pushed prices in the Indian state of Gujarat market.
  • Cotton prices may fluctuate until arrivals of new crop in September-October. However arrivals of new crop in many states are likely to delay due to delayed monsoon arrival.
  • Cotton prices are unlikely to fall sharply at least in the near term as acreage lags behind in key growing states.
  • Area under Cotton has dropped so far as it facing stiff competition with Pulses in many states as it seems to be very lucrative with good remuneration by government.
  • India Cotton sowing area so far reported lower by 9.41% at 9.23 million hectares