Cotton Insights for August 10, 2016

0
169
  • Cotton prices tumbled for second straight day in major markets across the country amid lackluster demand by mills and favorable weather for Cotton crop growth.
  • Cotton in North India slumped by Rs 40-50/maund (37.3 kg each), while lost Rs 400-500/candy (356 kg each) in Central-South India.
  • Demand in Cotton yarn has again turned dull with buyers opted to wait and watch movement in cotton prices, which has shown bearish tone in the last few days.
  • Global market melted in previous session with US Cotton futures declining to lower limit, whereas China market also exhibited bearish tone after extension of state reserve auction up to September 30.
  • Weather in major Cotton producing countries like India and US has turned out to be in favor of crop and has raised prospects of better production.
  • India is expected to harvest Cotton crop higher than last year as better yield likely to offset acreage losses.
  • On the International Outlook, USDA will release its crop supply demand balance sheet on August 12th which will impact the Cotton prices significantly.
  • If Texas which accounts to 60-70% of Cotton production for US reports good growth progress then we may expect ICE to move further lower whereas it may take some while for market to stabilize.

LEAVE A REPLY