According to Angel Commodities, MCX Nov cotton slump to 7 – week lower on Tuesday tracking weakness in international prices and balanced demand – supply situation in domestic market.
MCX Nov cotton slump to 7 – week lower on Tuesday tracking weakness in international prices and balanced demand – supply situation in domestic market. The Indian Cotton Federation (ICF) has estimated cotton crop for 2018 – 19 in the country to be 373 lakh bales of 170 kg a bale. Uneven distribution and lower rains in cotton growing regions going to hamper the yield for the kharif 2018 – 19 season will result in to lower overall output. Farmers in Gujarat – the largest grower – fear picking may come down from normal 4 – 5 to merely one or two this year. The CAI has revised downward the cotton production estimate for the country by 4.75 lakh bales, pegging it at 343.25 lakh bales of 170 kg for the current season 2018 – 19 (Oct – Sep ).
Cotton futures expected to trade sideways to lower on steady demand but expectation of higher arrivals may keep prices under pressure in coming weeks. Moreover, export demand from China, Bangladesh, Vietnam & opening up of Pakistan market to keep prices high this season.