Cotton Insights for August 05, 2016

  • Cotton prices traded steady to positive at the various markets across the country amid tight supply and limited mills buying at the higher level.
  • Inquiry from small domestic textile mills continued to be limited at the current scenario to meet their immediate requirements.
  • Big mills turned active since last couple of days and buying every possible Cotton for inventory purpose and new crop supply is expected to delay by at least 20 days due to delay sowing amid later monsoon arrival.
  • Cotton supply is tight pushing prices higher in the domestic market and we may not witness a sharp drop in price until arrivals of new Cotton crops in October.
  • India being the largest producer of Cotton in the world has to now depend on the importing Cotton of around 1.8 million bales from US, Australia and even Pakistan in order to meet demand for the coming months.
  • Overall Cotton prices are likely to stay supported due to tight domestic supply, expectation of delay in new crop and bullish global cues.