According to Angel Commodities, MCX May Cotton closed higher last week on improved physical demand and tracking firm International prices.
MCX May Cotton closed higher last week on improved physical demand and tracking firm International prices. USDA forecasts India cotton production for 2018/19 at 28.5 million 480 – pound bales (6.21 mt ), unchanged from last year. Harvested area is forecast at 11.8 million hectares, down 4 % from last year. In its latest press release, CAI, retained its estimate for the country’s output in 2017 – 18 (Oct – Sep) at 360 lakh bales (1 bale = 170 kg). Cotton prices are still trading at higher levels for the season tracking firm trend in International markets, higher exports and expectation of lower acreage in the country in next season. Cotton exports from the country are still behind at 34.1 lakh bales of cotton during Oct – Feb period compared to 36.4 lakh bales last year same period.
Cotton futures are expected trade sideways on report of normal monsoon and higher physical arrivals. However, improved cotton exports to China may keep the prices supported above 20,6 00 levels.