MCX Cotton closed lower for the second
consecutive session on Wednesday to touch more than a two - week low due
to profit booking by the market participants. Moreover, forecast of
normal monsoon also weighing on prices. Cotton exports from the country
are likely to touch 70 lakh bales in 2017/18, up about 27% from the
earlier estimate, due to a surge in demand, particularly from China, as
Indian cotton is selling at discount. Moreover, expectation of
shrinkage of cotton acreage by at least 10 - 15 lakh ha in coming kharif
season in the country due to pest attack also supports prices.
Outlook
Cotton
futures are expected trade sideways to lower on expectation of some
technical corrections after the reports of normal monsoon. However,
improved cotton exports to China may keep the prices supported above
20,000 levels.
Source: The Financial Express, India Friday, 20 April 2018