Angel Commodities report on Cotton Cotton complex continue to trade higher on reports good demand from the industrial buyers and firm international market also supporting the domestic sentiments. Moreover, the supplies have not peaked in the season which is a major concern. Cotton prices have moved up recently as market sentiment has improved with the Cotton Corporation of India (CCI) resorting to purchase of the commodity at commercial rates from different parts of key cotton growing regions in the country.
ICE cotton futures closed lower on Monday mainly on weaker export figures and profit booking from higher levels. As per USDA data, net upland sales of 183,700 RB for 2016/2017 were down 47 % from the previous week and 45% from the prior 4-week average. However, speculators raised their net long in cotton by 5,573 contracts to 99,820 contracts, bringing their bullish stance back toward last month's record high in the week to Jan. 3. Outlook We expect MCX cotton futures to trade sideways on expectation of correction from higher level, while kapas may trade higher on physical demand. Cotton prices were primarily driven by low cotton supply in the local market and also getting supported by the news of purchase by the CCI.
ICE cotton futures closed lower on Monday mainly on weaker export figures and profit booking from higher levels. As per USDA data, net upland sales of 183,700 RB for 2016/2017 were down 47 % from the previous week and 45% from the prior 4-week average. However, speculators raised their net long in cotton by 5,573 contracts to 99,820 contracts, bringing their bullish stance back toward last month's record high in the week to Jan. 3. Outlook We expect MCX cotton futures to trade sideways on expectation of correction from higher level, while kapas may trade higher on physical demand. Cotton prices were primarily driven by low cotton supply in the local market and also getting supported by the news of purchase by the CCI.
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