Cotton Insights for August 08, 2016

  • Cotton prices witnessed a positive trend at the various markets of India amid tight supply and increased mills buying.
  • Cotton prices further got elevated by Rs 20-30/maund in major markets in North India and Rs 500/candy in South India.
  • Stocks with small-medium mills have almost dried up, while big mills are buying for inventory purpose, which has pushed Cotton prices in the past 3-4 days.
  • Recent heavy precipitation and delayed sowing in many states has raised concern among mills that new crop will not going to available on time which has prompted to source Cotton either domestically or from overseas to meet their demand.
  • Cotton is the only crop where acreage declined considerably by 8.71% to 9.65 million hectares till August 5 this year compared to 10.57 million hectares in the same period last year.
  • Many farmers sowing Cotton switched to other crops because of last year’s damage to the Bt Cotton crop by white-flies in Punjab and Haryana.
  • Cotton prices likely to remain strong until new crop, whereas the condition of Cotton plants in pretty good so far in North India and weather is very much favorable for better yield.