MCX Cotton prices gained from 30000 to 36300 amid falling global stock and prospects of increase in demand - Kedia Advisory
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Cotton Outlook
MCX Cotton prices gained from 30000 to 36300 amid falling global stock and prospects of increase in demand, domestic cotton posted over 70% gains in the year 2021.
Cotton season started with a comfortable opening stock of 75 lakh bales and estimated crop of 360 lakh bales, the cotton prices started increasing from the beginning, but strong pent-up demand from textile, apparel segment in Q3/Q4 post-COVID period supported the prices
Cotton prices climbed back near 10-year highs in New York on bets that strong demand will keep supplies constrained. Following good run in ICE Cotton futures and increased demand from domestic millers, domestic cotton prices continued to register fresh high for the tenth straight session.
Despite rising supply in physical market and rising cases of virus globally, increased demand by domestic millers and recent rally in ICE & ZCE Cotton futures lifted domestic cotton futures by over Rs.3300 in last 10 consecutive sessions.
Sentiments improved as about 120 lakh bales arrived in the market between October 1 and December 31 as against the usual arrival of 170 lakh to 200 lakh bales. In Gujarat December-January marks the peak of cotton marketing season and normally, Jamnagar APMC records arrivals of around 2,000 quintals daily. But it is hardly around 1,000 quintals these days.
Farmers said unfavorable weather and attack by pink bollworms have kept the yield drastically low. The average yield, which remains around 20 mann per bigha, will drop to 10 mann this year as it rained excessively towards the fag-end of monsoon in September. Yields are being reported to be low in Maharashtra and Andhra Pradesh also due to excessive rains, unfavourable weather, pink bollworm attacks.
In 2021-22 kharif season, 3.25 lakh hectare area was under cotton cultivation and authorities were expecting production of 50 lakh quintals. But owing to the first-ever devastating attack of the bollworm, crop production was severely hit in the major cotton-growing districts of Bathinda and Mansa.
To Read Complete Report & Disclaimer Click Here
Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer
